SOUTH HURON — Council approved its 2010 budget last week that will see a 3.5 per cent increase in the amount of taxes collected compared to 2009.
Treasurer Sandy Becker reported at council's March 1 meeting that the taxation amount necessary to fund the 2010 budget has increased by $152,042. The municipality's capital budget in 2010 is about $17.3 million, while the operating budget is $13.5 million.
With the overall taxation increasing by 3.5 per cent, with assessment, it amounts to an approximately 1.8 per cent to three per cent increase on residential tax bills.
As Becker explained, the average 2010 residential assessment increase in South Huron was 4.8 per cent, so a property assessed at $100,000 in 2009 would be assessed at $104,800 in 2010. As a result, a residential property assessed at $100,000 in the Exeter ward would have paid municipal taxes of $571.72 in 2009. In 2010, that number increases $10.36, or 1.8 per cent, to $582.08.
In the Stephen and Usborne wards a residential property assessed at $100,000 would have paid municipal taxes of $468.14 in 2009. This year that figure jumps three per cent, or $13.83, to $481.97.
On the farm side of things, taxpayers will see a slight decrease on their municipal tax bills.
With the average farm assessment in 2010 increasing by 1.5 per cent, Becker said a farm in the Stephen and Usborne wards assessed at $100,000 in 2009 would have paid $117.04 in municipal taxes last year. This year, that same property would be assessed at $101,500, and would pay $116.70, a 0.3 per cent decrease.
In the Exeter ward, a property assessed at $101,500 would pay municipal taxes of $140.94, or 1.4 per cent less than last year.
Council and staff came a long way to arrive at the 3.5 per cent budget increase. Chief administrative officer Roy Hardy said the municipality was looking at an increase at just under 10 per cent when the process started. Numbers were then sent back to staff to look for efficiencies.
Hardy said one of South Huron's challenges this year was that the Ontario Municipal Partnership Fund was cut by $144,700. That alone accounted for three per cent of the budget.
Another of the municipality's considerations was ensuring it continued with its 10-year capital forecasting plan to ensure South Huron was putting away enough money to keep reserves in place to replace equipment.
Hardy noted the municipality is also receiving a lot less interest in taxes it has collected or has in reserves.
“We did cut back a little bit on some of our capital projects,” Hardy said, explaining that a project at Victoria Park and a bridge rehabilitation were deferred.
Hardy said he is pleased with how the budget turned out.
“I think council wanted to be sure that at the end of the day it was a workable budget for our staff. We are going to monitor our expenditures very closely this year. We've cut things right down to the point where some people are feeling a little uncomfortable, and that's OK, because basically people work harder then.”
Hardy said South Huron will do a mid-year review to make sure things are on track.
South Huron Mayor Ken Oke said working on a budget is one of the toughest jobs a municipal council has and he said council held four to five meetings for the 2010 budget.
He said council was a bit upset at what the numbers looked like at the beginning of the budget process, but the final results “look like a fairly good deal for all concerned.”
He added the 2010 tax rate is “a pretty good rate that everybody should be happy with.”
No one from the public attended last week's budget meeting to provide comments or ask questions