Budget set for final approval with 2.4 percent hike
by Blake Wolfe/The Scugog Standard

Scugog Council is now eyeing a 2.4 per cent tax increase - just shy of $20 on the average assessment - following this week’s latest discussion of the 2010 budget, which will also see councillors tightening their belts when it comes to this year’s annual pay increase.

The last budget of the current council’s term was discussed before a small public audience this week, including a handful of council hopefuls running in Scugog’s 2010 municipal election. Perhaps the biggest change to the township’s 2010 financial program since its last appearance before council was an 0.8 per cent reduction in this year’s tax increase, down to 2.4 per cent from a proposed jump of 3.2 per cent last month. According to Scugog’s director of finance Trena DeBruijn, this will work out to an extra $19.09 on the property taxes of an average Scugog home assessed at $290,162, which will actually be closer to a tax increase of 1.86 per cent for most homeowners. According to the township’s latest budget numbers, the decrease is due to an overall increase in property values following the 2008 MPAC assessment.

“We took in the issues while being sensitive to the taxpayer,” said Ms. DeBruijn, citing such factors as the rebounding economy and limited growth for the township. Ms. DeBruijn explained that the 2.4 per cent increase was achieved by cutting approximately $70,000 from the budget, including the deferral of new financial software and a reduction in the township’s general contingency funding.

The report states that property taxes will account for approximately $9.28 million of the $26.8 million budget, with approximately $11.8 million in grant money covering a good portion of the total. Other sources include user fees and interest at $2.4 million and $3.2 million in reserves, with only an estimated $100,000 coming from growth this year.

By department, Public Works will receive the bulk of the tax levy at 42.8 per cent or $4.16 million, followed by general government at 19.76 per cent ($1.92 million), Parks, Recreation and Culture at 15.5 per cent ($1.5 million), Fire at 15.34 per cent ($1.49 million), the Scugog Memorial Public Library at 4.2 per cent ($412,405), Planning and Development at 2.35 per cent ($228,300) and non-departmental allocations at 0.06 per cent ($5,500).

In terms of tangible budget items, residents can expect to see:
- a number of road and bridge rehabilitation and reconstruction projects, including Old Simcoe Rd., Medd Rd. and Demara Rd.;
- continued work on Port Perry’s waterfront revitalization, including the renovation and expansion of the Scugog Memorial Public Library;
- a new $340,000 rescue truck for the Scugog Fire Department;
- the official opening of Dr. Herbert Bruce Park in Port Perry, including $10,000 for new playground equipment; and
- numerous upgrades and improvements to Scugog’s community halls.

Councillors also opted to cap their annual wage increase at 2.5 per cent in the election-year budget rather than at the proposed three per cent, citing the impact of the weak economy on local taxpayers. Ms. DeBruijn explained to council that such an increase would work out to approximately $4,500 extra on the budget (or approximately $643 per councillor), including Scugog Mayor Marilyn Pearce, who requested staff to look into the development of a policy on councillors’ annual pay increases.

“As we move forward, we have to realize that there are many folks out there who won’t see a 2.5 per cent increase (in their own wages),” said the mayor, adding that a three per cent increase for councillors “while others are lucky to have a job is the wrong message to send.”
The budget will receive final approval by council at its March 8 meeting.