County first out the gate with 2013 budget, two per cent hike pitched

Posted October 30, 2012

The Executive Summary of Simcoe County's 2013 draft budget lays out the obvious first. "Property taxation represents the most significant source of revenue for the County of Simcoe." That's followed by justification to raise those revenues by two per cent over last year.

"Given the cost pressures of growth, and in order to maintain existing service levels and to expand services to a larger population, the tax levy is proposed to increase by two per cent, after adjusting for projected assessment growth of 1.5 per cent in 2013. It is anticipated that assessment growth will continue around this range in the near future and is what was reflected in the Strategic Plan."

In 2012, Essa Township ratepayers were tapped for $5.5 million in taxes transferred to the County, and $1.27 million as a separate line item to pay for waste management.

Simcoe County councillors were meeting this morning in Committee of the Whole to accept the draft and layout its next steps moving forward toward approval.

The budget, according to the summary, used "as a guideline, the following price change assumptions were used to develop the 2013 budget: Electricity prices +5 per cent; Natural Gas prices -5 per cent; Fuel/Gasoline +10 per cent; and Inflation +2 per cent.

The 2013 budget contemplates operating expenditures and capital assets acquisitions of $415 million. Total operating and capital revenues are $397 million and the remaining funding is assumed to be financed as follows:

Two per cent levy increase of $2.2 million;
Additional Debt financing of approximately $8.1M;
Unfinanced development charges reserve balance increase of $7.7 million

"During the 2012 strategic planning session County Council determined that the 2011 surplus was to be allocated to the Social Housing reserve for future Social Housing capital requirements totaling $3.8 million, debt payments of $3 million, and $2 million to specific roads projects that are identified within the 2013 roads capital budget," according to the summary report. "Other key directions for the budget included the
continuation of the current annual commitment to the hospital alliance until 2016 of $3 million. County Council is committed to funding post-secondary education initiatives at Georgian College and Lakehead University. The budget provides funding to Georgian College of $500,000 and Lakehead University of $1 million."

The largest expenditures by program is led by Social Assistance, estimated to cost $85.3 million; solid waste management, $56.8 million; Roads, $53.5 million; Long Term Care, $43.5 million; and paramedics, $40.8 million. Labour costs make up the bulk of those.

Simcoe County has 1,650 full and part-time including seasonal employees. The 2013 draft budget accounts for 67.4 new FTE positions. Of those 35.8 are in long term care roles, and 9.6 FTE in paramedics.

It's expected the budget will be approved by council November 27th.

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