By CONNIE TABBERT
Editor
WHITEWATER REGION — Whitewater Region council is expected to pass the levy of its 2018 budget at 1.5 percent at next Wednesday’s council meeting.
That is how much more money is required to pay for the services provided to the township in 2018 than in 2017. However, the tax rate increase won’t be known until after the province and county pass their tax increases which isn’t expected to happen before April.
This was just one of the explanations during last week’s public meeting on the budget. Eight residents and business people attended the meeting.
Speaking during the meeting were Neil Rooney, Donna Burns, Donald Deer and Wayne Heubner.
Chief Administrative Officer Robert Tremblay, using a power-point presentation, gave a quick review of the general, water and waste water budgets prior to opening the floor to questions.
Ms. Rooney questioned the increase to $50,000 from $3,500 for community initiatives. CAO Tremblay explained that with the township taking over the arenas, the $30,000 funding that used to go towards the individual arenas would now to towards community organizations that applied for funding. There was also $20,000 set aside for Phase 1 of the Community Improvement Plan. Explaining, he said people who live on Hwy. 17 and businesses in the CIP areas could apply for funding to help renovate their properties. However, the money would not be given until after the renovations were completed to the satisfaction of the agreement provided when they applied.
Ms. Rooney also wanted to know whose salaries were included in the $488,420 line for administrative salaries. CAO Tremblay said all administration and staff except those who fall under the unionized contract with public works.
He noted the staff in the three arenas is $120,000 and falls under its own line in the budget.
When questioned how many staff had been hired for arenas and parks, CAO Tremblay said one supervisor of arenas and parks and a few operators and part-time staff for the arenas.
Ms. Rooney also raised the concern that volunteers used to work at the tourist booth and questioned why there is now a budget of $59,000.
CAO Tremblay noted there is an increase from one summer student to two, based on feedback from the volunteers. There will also be two park students, because volunteers felt they needed more support staff, such as for cleaning.
Prior to sitting back in the gallery, Ms. Rooney gave a warning to council.
“I would like to remind all of you, that you were put here by the taxpayers to do the right thing on their behalf,” she said. “I believe you have fallen short of their expectations. I highly recommend that you be careful with their money. Remember, the taxpayers put you in and they can take you out.”
Councillor Charlene Jackson agreed with Ms. Rooney that council was voted in by the ratepayers.
“I think we’re doing a wonderful job,” she said. While she tried to continue, there was guffawing coming from the gallery, so before continuing, she said, “I think there should be order in the chambers please,” with agreement from Mayor Hal Johnson.
Continuing, Coun. Jackson said, “I think bringing a 1.5 per cent levy increase, which is probably the lowest levy increase that Whitewater Region has seen since amalgamation, so I would have to say we are taking every interest of the ratepayer into consideration.”
When questioned by Ms. Burns regarding subsidies for the summer students, CAO Tremblay said federal funding is always applied for, but it’s not known until close to hiring time how much funding is granted. This year it’s expected there will be eight students hired: two each for public works, office, tourism and parks and one in emergency plan so it can be updated. However, last year the municipality received funding for three, so it’s hoped it will receive at least funding for that amount, if not more.
Ms. Burns questioned the financial increase to administrative staff.
CAO Tremblay did not have that total available as it was spread throughout the budget for different departments, but did note there were staffing changes.
“A lot of what has happened is we changed the jobs to something we needed more,” he said.
Explaining, he noted the entrepreneurship co-ordinator became a planner/economic development officer – however, that position could not be filled. That job title was then changed to manager of community services. The front counter staff person resigned her position and a new person was hired, with a title of recreation/accounts receivable co-ordinator. The only addition is Supervisor of Arenas and Parks, which was required when the township took over the three arenas.
CAO Tremblay noted previous to hiring Huey Martin as the arenas and parks supervisor, each manager at each arena was not an employee of the township, but of each recreation association that was operating each arena.
Ms. Rooney questioned where in the budget are legal fees, consultant fees and expenses paid out to employees who have been dismissed.
CAO Tremblay said each department has its own legal line, such as a planning matter, is under the planning department; roads department would be in public works, etc. Consultant fees are usually under capital expenses, he said. Previous employees, if it’s salary related, is under salary line, even if the employee is terminated, he said.
Levy Explanation
Donald Deer noted the budget is just over $11 million with a shortfall of .7 percent, yet council is requesting 1.5 percent increase in taxes.
“That’s totally unacceptable,” he said. “If you can’t find .7 percent that you can eliminate, that’s unbelievable to me.
“I’ve been involved in private industry my whole life doing things such as cost reduction,” he said. “You guys should look at that.”
Mr. Deer also contacted various townships and questioned why the tax rate in Whitewater Region is five percent more than Horton Township and approximately seven percent more than McNab Braeside.
Coun. Jackson said the levy increase is based on a percentage of what the levy was last year compared to this year. The difference is divided by last year’s amount and that’s the 1.5 percent levy increase – it’s not a base of the $11 million budget.
Whether tax rates are higher in some municipalities and lower in others is dependent upon what they choose to do with what available funding they have, she said.
To be fair, Coun. Jackson said Whitewater Region should be compared to Bonnechere Valley, Madawaska Valley and Greater Madawaska.
While trying to talk over each other, Coun. Jackson and Mr. Deer appeared to be talking about two different rates.
Coun. Jackson cleared it up by stating the tax rate, which is what Mr. Deer had been referring to, will not be decided upon until late spring.
The tax levy is the difference between what was required in last year’s budget to what is needed in this year’s budget, she said. The assessed values of properties have a lot to do with tax rates, she said.
“It’s very hard to compare tax rates to tax rates because tax rates are based off assessment,” Coun. Jackson said. “Yes, it comes down to dollars and cents in your budget, but it’s really hard to compare because you have to have the inside knowledge of where you’re getting funding.”
The tax rate is what you pay for taxes; the levy is what is required to be raised under taxation, she explained.
Last year, 2017 had to raise through taxation $4.8 million; this year that number increased by $43,430. But, because of increased in values and increase in services provided by the township, the township needs a 1.5 percent increase to the levy, which is reflected in the tax rate, Coun. Jackson continued. The tax rate will “more than likely, I’d be surprised if they don’t go down or at lest stay the same,” because assessments are phased in over four years and 2017 is the first year for using the 2016 values, which will be used for 2018, 2019 and 2020.
“It’s a convoluted calculation when it comes to municipal budgets and business,” Coun. Jackson said. “There’s no clear way of understanding it. One way of looking at it, how did the levy increase? The levy increased here 1.5 percent is what we’re suggesting. Tax rates however, you compare those at a different way. There’s no way of knowing how much the county is going to go up, how much the education is going to go up or down. Historically, the education has gone down over the last six years.”
The budget can be amended in the spring, she said. Reserve contributions can be cut back and possibly other places as well if necessary, she said.
Coun. Jackson said as a treasurer, she would have come back with a higher levy increase.
Businessman Wayne Heubner discussed a few line items he was concerned about, such as $26,500 for Emergency Preparedness.
Responding to Mr. Heubner’s question, Mayor Johnson said this includes replacing the sandbags used last spring, and being prepared for any other emergency that may come up.
CAO Tremblay further added that with the flooding situation last spring, much more money was spent than had been budgeted.
“We’re budgeting a bit more so we can stockpile sandbags,” he said. “If we don’t use them, we can use them in future years.”
Mr. Heubner also questioned the amount of money for the arenas and recreation, wondering how they were two separate entities.
Coun. Jackson said in recreation it covers students, Healthy Kids Challenge, software and computers for booking and billing of the arenas, masterplan and the work that may be recommended to be completed following the plan, smaller rec associations, such as Foresters Falls and Snake River Line.
A businessman for 45 years, he then questioned why the computers and software would not have come with the arena.
“I would have thought, when we took them over, I was confused, because now we have to buy software, so they can do something in Westmeath and log it in here (main office),” he said.
“When I look at this budget, it looks to me like metric. $1.29 per litre doesn’t sound too bad, but add it all up it’s $7 a gallon,” he said.
There are so many different departments spread out, he explained.
Like Ms. Rooney, he too gave a warning to council.
“Next November, there’s going to be a heavy turnout in votes,” Mr. Heubner said. “I’ve never heard so many complaints.
“You say we’re doing a great job. I’d have to hire a consultant because I don’t know.
“I’m like Joe Public, we just take everything for granted,” he continued. “I see it, but my taxes have gone up considerably under this administration and I know in business you’re expected to pay more, but, I know people are very upset. Councillor Dave (Mackay) and I had a little chat before this meeting.
“If there’s not a big turnout I’d be surprised,” he continued. “This affects people in many ways on the bottom line financially.”
Mr. Heubner said 60 percent of this township is retired people. There are 7,200 residents, how many are seniors on a fixed income, he questioned.
“I don’t even know the statistics, or if they’re even available,” he said.
Mayor Johnson said with the arena and rec and other things, it’s not a cost increase, it’s a change in how the municipality is doing business. The administration does not want to lose the facilities that are available to the young people and there was fear of that happening.
“Us seniors have to think about our grandchildren, we have an obligation to them,” he said. “I do think this budget actually is well thought-out.”
Coun. Jackson said the 2016 Stats Can show there are 1,490 residents in Whitewater Region who are 65 and over, which is less than 20 percent of the municipal’s population.
Mr. Deer questioned if how a consultant is hired by the municipality will change. Currently, the township can hire whomever it wants without going to tender.
CAO Tremblay said professional services, which includes consultants, has been done more by request for proposals starting this past year, instead of just hiring a firm.
Growth and development questioned
Ms. Burns questioned why growth and development improvement isn’t prominent on the revenue side of the budget. Revenue appears to be coming from recreational, while building permits only increased by $2,000, she noted.
“You don’t expect big growth and development in the township,” she questioned.
CAO Tremblay said while there are projects in the works with developers, which can’t be discussed in public yet, revenue is being projected by what has occurred in the past.
“It would be irresponsible for us to bank on something that hasn’t been there,” he said. “In terms of increase in assessment growth, there is growth in the township, it’s not stagnant. We have to make sure we aren’t banking on something that may not happen.”
Ms. Burns said, “It’s out of your control regarding permits and regulations for growth and development, so is that why you don’t expect a whole lot of growth and development because it’s in the hands of the province?”
Coun. Jackson noted there are no restrictions on Whitewater Region that are not on other municipalities within the province.
Ms. Burns said, “I know that,” as Coun. Jackson continued.
As for development, they are on the horizon and can’t be done right away. There are developments being advertised, but there is so much to be done prior to begin building homes, Coun. Jackson said.
Ms. Burns attempted to ask another question, but Coun. Jackson suggested she not be allowed to continue a discussion if she’s not going to wait for an answer.
When Ms. Burns asked if the township had a letters patent, CAO Tremblay said it has a minister’s amalgamation order.
When Mayor Johnson asked what it would mean if the township had its own letters patent, Ms. Burns said the township would be a separate corporation. Amalgamation was done before the change to the territorial division act, Ms. Burns said.
Mayor Johnson tried to talk about letters patent, but Coun. Jackson again interrupted and said the discussion on letters patent has nothing to do with the budget.
Ms. Burns disagreed, saying, “It has a lot to do with the budget” and Coun. Jackson stated, “It has nothing to do with the budget.”
Mayor Johnson said, “I have a patent on my property and the only thing it allows me to do is cut down pine.”
Coun. Jackson interjected again, saying it’s not a budget discussion and Mayor Johnson agreed.
Ms. Burns again reiterated, it is budget related, but Mayor Johnson again disagreed.
With no further questions or comments from the gallery, the public meeting was closed.
