Talking taxes, Arnprior staff proposes 3.5% tax hike to council

Posted Feb 2, 2012 By Derek Dunn

EMC News - Staff at the Town of Arnprior presented the first draft of the 2012 operations budget on Jan. 30, asking council to approve an average 3.5 per cent tax levy hike.

Treasurer and acting chief administrative officer David Pollard explained that the total revenue for this year should be a little over $14.5 million. When the levy goes up 1 per cent (an additional $63,000) it pays for inflationary costs and expanded programs.

In 2012, staff is asking for $220,500 more to run its affairs.

However, councillors tend to observe closely during budget season and department heads sit before them one at a time to make their case for increased funding. In past years, the final tax increased fell below the proposed hike.

If councillors approve too much of an increase, they hear it from voters. If staff is given too little in funding, they hear it from service users.

Although public sector salaries are a contentious issue nation-wide, Pollard announced early they are frozen at town hall.

"We've left all salary and wage lines the same as last year," Pollard said.

Just as Pollard was about to begin the overview, Mayor David Reid picked up on one of the central revenue streams. The water revenue is up 3.64 per cent, to $1.94 million, but the wastewater revenue is down 2.19 per cent, to $1.74 million. "How can we have a reduction in consumption, but still have an increase in rates?"

Pollard said there is a difference in expenditures between the two plants.

Reeve Walter Stack isn't surprised consumption is down following the water billing fiasco. "We did draw a little attention to water bills," he said.

Another controversial line on the budget is policing costs. The police department came in at $2.1 million last year and $2.2 million in 2012, for an increase of 5.3 per cent. Reid noted that about 2 per cent of that increase is mandated by the province.

While tax revenue from residential growth was solid at $92,000 last year, industrial growth fell by $44,000, leaving a net growth of about $47,000.

On tax assessments, Stack recalled a few years ago when ratepayers complained that assessments were inaccurate and didn't take place often enough. He said the provincial ombudsman made about 22 recommendations, 19 were implemented, but the others would take about $22 million to put into place.

Last year's proposed tax increase reached a high of 3.59 per cent before settling at 1.83 per cent. Council's budget talks were ongoing this week and will continue in next week. Upcoming stories will detail facts and figures from areas such as the Nick Smith Centre, library and fire services.