Clearview tax increase down to 1.85%
Clearview Township staff managed to get the overall tax increase down to 1.85 per cent while increasing the budget by $300,000.
The budget was presented at a public meeting at town hall in Stayner Monday evening, to an audience of 10.
At a Jan. 26 budget workshop, council members directed staff to rework the budget and come back with an overall increase of 1.95 per cent or less, down from the 3.2 per cent originally presented.
Council directed staff to dip into a tax stabilization reserve, using no more than $120,000 to offset tax revenue. The reserve is made up of surpluses from past years.
When considering only the township’s tax levy, the increase is down to 3.92 per cent, from 6.44 per cent.
The overall tax increase went down thanks in part to a one per cent increase at the County of Simcoe and no increase expected in education taxes.
The operating budget went up $500,000 and the capital budget went down $200,000, making for an overall increase of $300,000.
The changes are a result of taking money from reserves, using grant money to pay for a road paving project carrying forward incomplete 2014 projects that were funded by 2014 tax dollars, and other minor changes such as a slightly higher than expected NVCA levy, all of which affect the bottom line.
“We put in the $120,000 transfer from the tax stabilization reserve so that added to the revenues,” said treasurer Edward Henley.
“That $120,000 isn’t coming from taxes. It’s actually reducing the amount of taxes that have to be paid.”
Only a few people commented on the budget during the public meeting.
Clearview Public Library board chair Bob Charlton said he would not argue that the budget should be changed but has concerns about a reduction in transfer to library reserve by $25,000.
He said the reserve is meant to serve as a down payment for a loan to build a new library one day.
“I am concerned the reserve is going to be easy pickings next year,” said Charlton. “We are on a slippery slope. The point was to make sure the funds would be available when we need it.”
Dave Huskinson said the budget does not reflect a true reduction, it reflects a lowered tax increase made possible only by low county and education increases.
“The public was not in favour of a communications officer,” said Huskinson. “If you are not communicating, what is a communications officer going to do? I’d rather have the economic development officer.”
Deputy Mayor Barry Burton is happy with the overall outcome.
He is the one who originally proposed that staff be directed to take the original draft budget and get the overall tax increase down to 1.95 per cent or less.
“I’m happy with what we have accomplished so far. I would still like to see further reductions,” said Burton. “I think we’re close.”
He said he is looking at specific ways to reduce the tax levy.
He would also like to see the communications officer position, which remains in the budget at $36,628 for six months (the position would pay $56,000 plus benefits), replaced with the hiring of an economic development officer.
“I struggle with bringing on more staff but we do need a communications officer, however you are constantly trying to find that balance of what we need and trying to keep the tax levy down. I still think an economic development officer is a priority.”
The budget could be discussed one more time at a workshop meeting on March 2 or it could go directly to council that same evening for final approval.
