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Town’s first budget draft could mean no tax hike

October 19, 2016   ·   0 Comments

At its meeting Monday night, Orangeville Council was given a preliminary look at what the 2017 budget could look like.

Town Treasurer Mark Villeneuve presented a glimpse into what the future finances could be for Orangeville, and overall the results were quite positive for taxpayers.

In fact, after adjusting for residential assessment increases and population growth, the 2017 tax increase could, in fact, be zero percent. Mr.Villeneuve shared with council his preliminary thinking and rationale for these very positive numbers.

The budget put forth would be focused on accomplishing the following key initiatives: • Maintain or increase the level of service; • Continue to review how we deliver services effectively and efficiently; • Continue support of events, arts and culture and local organizations; • Increase investment in infrastructure; • Increase investments in Reserves, and • Consider the budget’s impact on residents.

In addition, the Treasurer shared the important matter of future planning. Specifically, past councils would budget each year, where this new process will be done earlier and have a long-range focus of five years. The ultimate goal is to anticipate future expenses prior to experiencing an urgent need and therefore having a more prudent fiscal approach.

Mr.Villeneuve presented estimated budget plans that show flat and declining tax increases over the next five years. It is important to note that these assumptions increase over the next five years and factor in property assessment growth and the population growth for Orangeville. What this means is that the assessment value of homes will most likely continue to inflate and there will be more people living in town, and these two factors will spread the tax revenue over a larger number of people but not necessarily increase monies owed by the individual.

If anyone is interested in understanding these rates further, they are on page 11 of the October 24th budget agenda. It is true that the results are preliminary and council will have a line-by-line discussion on what the final projects and fees will be. However, the 2017 numbers show a phased in growth number of 0 percent. As the years progress, these “phased in” numbers actually show declining values.

The actual numbers for 2017 show the Net Levy (increase amount to be paid) at +4.5 percent.

However, this will be offset by phased in real estate value assessments -3.5 percent, and estimated population growth -1 percent. Net, a proposed zero percent increase.

The Operating budget identifies such items as a 1.9% cost-of-living adjustment for town employees, additional monies to transit, and changing the administration of sidewalk clearing from contractors to an in-house initiative.

Other highlights show that key community social programs are to be maintained. Groups and initiatives specifically mentioned are as follows:

√ Façade Improvement Grants $30,000

√ Credit Valley Conservation $135,000

√ Theatre Orangeville $35,000

√ Visitor Information Services $100,000+

√ Small Business Enterprise Centre $100,000+

√ Tree Carving & Planting programs $40,000

√ Emerald Ash Borer Management $90,000

√ Canada Day Celebrations $10,000

√ Dufferin County and Mono support for Canada 150 Community Grants $30,000.

Key Town committees that will continue to receive financial support are Access Orangeville, Arts & Culture, Communities in Bloom, Events Committee, Heritage Orangeville, Orangeville Seniors/Age Friendly, and Orangeville Sustainability Action Team.

Lastly, key projects that will require financial planning and debate included hiring four additional full-time firefighters in 2017 and an additional four firefighters in 2018. The cost for these eight additional town employees peak at over $1 Million in 2021.

The official budget season begins at town hall next Monday, October 24. All documentation can be found on the town website.

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