Township of Terrace Bay 2014 Budget Newsletter
Mayor Jody Davis, Township Terrace Bay
As most residents are aware, 2014 has been an incredibly challenging budget year for Terrace Bay. The reassessment of the Mill resulted in an approximate 16% loss in tax revenues while the community endured one of the toughest winters in 20 years. This is the 3rd major reassessment that the mill has received. Each reassessment has caused a major reduction in our tax base and resulted in significant changes to services and staffing, in addition to increases in property taxes.
This year, increases in energy costs, policing and ambulance services, compounded with reductions in provincial and federal funding hindered our budgeting efforts. However, Council and Administration have been diligent to hold the line on departmental budgets, reduce costs and explore efficiencies thoroughly. We responded to the loss of tax revenue through our Moving Forward Plan and I am proud to say we have implemented many cost savings measures to minimize the impact on the taxpayer. A review of information technology, conversion to LED streetlights, restructuring of recreation fees, energy efficiency plans and changes in staffing represent some of the cost savings initiatives that have already been implemented.
A major initiative is the establishment of user fees for waste collection and installation of a recycling depot at the landfill. By introducing a user-pay structure for collection and recycling program simultaneously, users are able to offset the impact of the fees by recycling more and disposing of less. User fees also offset municipal costs for collection, disposal and now, recycling.
Public meetings and education on the new program will roll out throughout June, with the hopes that everything will be up and running the second week of July.
Budget Highlights Taxes
- Residential properties can expect on average a 5% levy increase.
- On an average tax bill ($2,000) this represents an increase of approximately $100 a year.
Water Rate Increase
- Water rates are being increased by 6%, which represents $34.50 a year on the average residential bill.
- The increase is to strive toward cost neutrality but also offset a $42,000 loss in funding from the Ontario Small Waterworks Assistance Program (OSWAP) that ceased in 2013.
- The last increase to water rates was in 2011.
Waste Collection User Fees & Recycling
- $2 user fee (garbage tag) per 121L container placed at curbside.
- Average home with two containers a week, represents an additional $208 per year ($104 for six months this year).
Further highlights
- Significant cost reductions made to travel and training expenses.
- Service reductions (crossing guard location reduction, Sunday closure of Community Centre).
- Snow/weather related costs estimated at additional $70,000, over and above a typical season.
- Maintaining and strategic renewal of assets (new waste collection vehicle, building infrastructure and environmental systems).
- Necessary maintenance projects at the Community Pool, Trestle Ridge Ski hill and the Aguasabon Gorge.
- Enhancement of access to Fitness Room (24/7) with swipe card system
In closing, it is important to summarize and provide some context. We began our budget exercise within the prioritized framework of enhancing revenues, reducing costs, reducing services and limiting service eliminations. This was the key aspect of the Moving Forward Plan. Service reductions, while necessary have been made strategically and strive to limit the impact on residents. We are generating new revenue from waste collection to offset the cost of collection, disposal and recycling. We are increasing revenues derived from recreation, increasing access to facilities, while continuing to offer equivalent programming and community events as in years past. Overall, Council is very positive on the outcome of this year’s budget and aims to maintain the same great service levels in the community that residents have come to expect.
For more information please contact Township Administration at (807) 825-3315.
On behalf of Council,
The Corporation of the Township of Terrace Bay
Mayor George “Jody” Davis
