North Dundas increase 9.86 per cent

WINCHESTER – A second draft of North Dundas Township’s budget lowered a proposed double-digit tax increase back down to single-digits, barely.

North Dundas’ first draft of its budget, tabled at its February 1 council meeting proposed a 14.68 per cent tax increase, citing a number of capital projects, upgrades, and much higher insurance costs. Council met on February 29 for its second kick at the budget, eliminating nearly five per cent of the proposed tax increase.

The revised budget will see a tax rate increase of 9.86 per cent in 2024, which amounts to $45.65 per $100,000 of assessed value of a home.

This is down from the initial $69.03 per $100,000 of assessed value at the start of the month.

To get below a 10 per cent tax increase, council used money from its reserves to pay for some projects, while deferring other projects.

North Dundas’ culture and recreation department accounts for a large amount of the capital projects in this years budget.

Some of the major increases include a 40 per cent jump in insurance premiums from 2023 to 2024. According to the township, its premiums have increased by 432 per cent since 2019, or $752,000.
For every $1,000 in property tax dollars collected (County, Township, and Education combined) in 2024, $490.69 goes to SDG Counties, $117.78 goes to Education, and the remaining $391.53 goes to North Dundas. Of that amount, distribution across the six main departments of North Dundas is broken down to $137.97 for Transportation Services, $87.03 for Recreation and Culture, $52.81 for Environmental Services, $46.50 for Fire Services, $35.39 for Administration, and $31.83 for Development Services (planning).

Some of the cuts made by township staff included the Harmony Path project at a savings of $50K. Administration saved $5,000 on the Brown’s Cemetery by only focusing on the monument repairs, and not do the pathway improvements.

The transportation department will change how it puts in place signage for the new 40 kilometre speed limits on streets, working with SDG Counties. This netted a $30K savings. Moving road pulverizing in-house will save $112K from the department’s budget. However acting-CAO Ben deHaan warned that it will take staff away from other projects at times and make projects more weather dependent.

Tipping fees for the landfill will increase, which will add an additional $10K in revenue for that department.

Pending a recreation master plan, a new generator for the fire station in Chesterville was deferred, netting an $18K savings this year. Chesterville Arena improvements were reduced by $13K.

Major improvements to the Sam Ault Arena and Joel Steele Community Centre in Winchester will still see $100,000 put towards the proposed work, but work will not begin until the completion of the new recreation master plan. Needed work at the arena includes insulation, replacement of a cooling tower, roof repairs, and other work.

Work on the Winchester outdoor pool will continue as planned ($70K) as will $120K in work to the Chesterville pool. Repairs for both pools are required in order for the pools to open this year by order of the Eastern Ontario Health Unit. Some work to Chesterville to improve flow rates may be deferred if the EOHU allows.

Councillor Matthew Uhrig said he looked forward to the completion of the recreation master plan.

“We look at the major dollars that were put into both our Arena facilities not all that long ago and the big time dollars that continuously seem to be having to go into having two arenas. I do feel that perhaps we’re reaching an untenable situation,” he said.

He said he does not want the solution to be shutting one arena over the other.

“I do think that the general population in our municipality needs to understand that the significant dollars that go into these facilities every year for the limited dollars that come back. It’s easy for a user group to say ‘well we want to skate in August.’ Well if it’s 40 degrees in August, it’s hard to put ice in.”

He continued that some “difficult conversations” with groups may have to happen.

“I don’t know that at the size we currently are, we can continue down the path of increased expenditures for our facilities.”

Mayor Tony Fraser said North Dundas is unique compared to neighbouring townships with two pools, two arenas, two junior hockey teams, a senior hockey team, and a minor hockey association.
“That doesn’t happen by chance, it comes through good fortune, good coaching, and good volunteers, but also having the ice that they can play and practice on,” he said.

The $200K tax rate stabilization reserve will be depleted to pay for two ice edgers ($5,840 each) with the balance going to offset spending.

In all, including the tax rate stabilization reserve, nearly $1.8 million will be used out of North Dundas’ reserves. This will leave approximately $5.43 million remaining at the close of the 2024 fiscal year.

Treasurer John Gareau said that $1.16 million of the remaining reserves is un-financed capital from past projects. Some departments also eliminated repaying reserves for previous capital projects this year.

Deputy mayor Theresa Bergeron said what the township is facing is that for many years property tax increases were kept low.

“Sometimes lower than the cost of living,” she said. “Not enough money was put aside for future capital costs. You have to be ready for that.”

She added that the increased growth, inflation, the pandemic and others added expenses, but transfers from the province have decreased.

Council voted to adopt the budget in principle, with a formal budget bylaw to come to council at a future meeting.

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