United Counties begins 2012 budget process

Posted Feb 2, 2012 By Ashley Kulp

EMC News - The United Counties of Leeds and Grenville (UCLG) have a long road ahead in their 2012 budget process.

A special ad hoc budget committee meeting was held immediately following the monthly United Counties Council session in Brockville on Jan. 19.

"Things aren't 100 per cent complete (with the budget) at this time," noted committee chair and Elizabethtown-Kitley reeve Jim Pickard, who stated the next budget meeting is set for Feb. 6. "...This is a long process and there will be many changes as we go through January, February and await final approval in March."

Despite a lack of concrete numbers, Nigel White, director of corporate services/treasurer with the United Counties, provided an update on reserve policy and funding, the debt repayment schedule, 2012 assessment and tax rates, as well as the proposed capital budget and grant application review.

White said in terms of the reserve policy and funding, a report with more information will come forward at the Feb. 6 meeting. The grand total of all reserves at the 2011 year end sat at $17,914,078, which factors in the three groupings of reserves: obligatory (working funds, employee recognition, gas tax, sick leave, WSIB) was at $6,331,725), UCLG operations (capital/infrastructure, fleet and equipment, building contingency) was $8,127,384, and the joint services capital (POA computer replacement, community housing capital, EMS building fund and fleet reserve) was $3,454,969.

The debt repayment schedule outlined the long-term liabilities for the UCLG as of Dec. 31, including St. Lawrence Lodge in Brockville and Mapleview Lodge in Athens. Including repayment to reserves, the debt repayment sat at $13,319,235 on Dec. 31.

"This is good and clear, so thank you for that," stated Merrickville-Wolford mayor Doug Struthers.

White also provided a verbal update on the assessment of the tax rates, noting that much work has been done to keep a revenue neutral tax rate. Due to growth, he said the United Counties' tax rates have gone down by about seven per cent.

"This is due to growth and new assessments, which has nothing to do with the phase-in process of people's assessments," he pointed out.

White said it is too early to estimate what the proposed United Counties tax rate for 2012 will be but "we will be developing other scenarios for two per cent and three per cent tax rates later on."

"We need to get through the initial phases of looking at the budget and capital," he stated, noting that one per cent is equal to approximately $300,000.

Struthers pushed White for a date when a proposed tax rate might be available. "There has been lots of good work done and is yet to be done but when it all comes down to it, what's the bottom line? The taxpayers depend on it," he remarked. "When will staff be able to say this is the number for the year?"

"A firm number (for the tax rate) from staff's point of view won't come until March," White answered.

Currently, the 2012 draft consolidated budget (dated Dec. 31, 2011) and including general government, transportation services, waste management, health services, homes for the aged, as well as planning and development is constantly changing. The capital portion of the budget presently makes up $17,107,280 while the operating budget sits at $75,344,259.

Applications for those community organizations who are seeking for grants will be discussed in the near future by the grant review team who will then make recommendations to the governance and finance committee. The issue will then come back to the ad hoc budget committee for perusal.

The next United Counties ad hoc budget committee meeting is scheduled for Feb. 6 at 9 a.m. in council chambers in Brockville.