Reduced revenues, increased costs lead to 1.94 per cent tax hike

Average homeowner to see increase of $52 a year.

By Donna Pitcher, The Chronicle

Updated 11 months ago

Over the past two days, Haldimand County council has been working with staff members Treasurer Mark Merritt, General Manager Karen General and CAO Don Boyle in working out a way to lower the projected tax levy.

Reduced revenues, increased benefit costs, increased policing contract costs and savings from social services arbitration and on-going uploads of social services were some of the major operating impacts on the 2011 budget stated Merritt.

The average residential assessment value for Haldimand County is $209,000. At the current tax impact of 1.94 per cent, the average homeowner would see an increase of $52 a year.

Councillor Leroy Bartlett made a note that this year's budget is confusing because there are not a lot of breakdowns in the services and members of council have had to ask a lot more questions than last year.

The tax supported budget constraints that Merritt calls "uncontrollable" are programs and services mandated by the Province or provided by local boards or agencies. These services include public health, social assistance, child care, social housing, policing, and conservation authorities. These services (including education taxes) represent approximately 34 per cent of the total average tax bill with unpredictable annual levy impacts said Merritt.

Haldimand County was successful in two major arbitration cases that concluded in 2010. These awards have favourable impacts historically, as well as on 2011 and future operating budgets.

The County was successful in a multi-year arbitration of contractual costs for policing services supplied by the Ontario Provincial Police (OPP). These costs were incurred over 2003 to 2009. The 2010 operating budget utilized $750,000 of the arbitration savings to phase in the new OPP contract.

During 2010, the County concluded the long awaited arbitration of the cost sharing of social service programs with Norfolk County. This award was retroactive to Jan. 1, 2002. It is estimated that the County will have $5 million available for the period ending Dec. 31, 2010.

The 2011 budget proposes that $2 million of these funds be transferred to the tipping fee rate stabilization reserve in order to address the deficit in waste management operations over the past few years. The balance of the funds should remain in the social assistance stabilization reserve to mitigate future levy increases.

A one-time cost of $22,000 for a community consultation survey, and the municipal booklet (which costs $11,000) that comes out once every four years were debated on and both items were removed from the 2011 budget.

Council discussed the $100,000 a year that is spent for corporate advertising in local newspapers and voted to reduce this cost by $25,000 a year.

A new initiative for a Property Co-ordinator at a total cost of $93,320 a year was discussed in depth and since the County has a backlog of road closure issues, surplus properties and conveyances, council voted to fill this position on a three-year contract basis.

A one-time funding for the Community Support Services of Haldimand-Norfolk and the Dunnville Salvation Army of $50,000 each was approved by council as well.

Remuneration for members of council sitting on the Police Services Board was approved with an additional cost of $8,200 a year.

More details on this year's Tax Supported Operating Budget will be revealed in next week's Chronicle and posted online at our website, www.dunnvillechronicle.ca, beforehand.

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