Councillors hear from public on the proposals for the 2007 budget
By Bill Rea

Proposed tax increases are too high, some ditches in King City are too deep, more work needs to be done in other areas and there were dire warnings of a possible tanking of the American economy.

That's part of what happened Monday night when King councillors heard input from the public on the 2007 Township budget proposals.

Township staff has put forth recommendations for a budget that would see King's share of property taxes increase by approximately 5.99 per cent, with the possibility of substantial debentures to cover the costs of road work concurrent with the installation of sewers in King City and Nobleton. CAO Scott Somerville stressed that these are just proposals, subject to change at the decision of council.

Councillors also found time to discuss their salaries.

There was a lengthy incamera session, but Clerk Chris Somerville said nothing was voted on, and the issues raised will likely be subject to more discussion.

Deputy Mayor Bill Cober later reported there were some personnel issues that need to be dealt with. He added staff has put forth some hiring proposals, that are helping to drive the budget to the 5.99 per cent hike, but he doesn't think the municipality can afford that.

He also said there is support for an idea from Councillor Jack Rupke to set up a reserve over the current term of council to finance an elevator at the King City Library.

There was no decision on councillors' salaries.

"I personally think it's very difficult to give councillors an increase above and beyond anything we're doing for our staff or the cost of living," Cober commented.

Kettleby resident Bob Martin made a lengthy presentation in which he pointed out external factors are impacting on King's budget, including the falling value of the American dollar and its impact on the North American economy. There are also the pressures of financing future capital expenditures.

The dropping American dollar would make U.S. imports more expensive, he warned reducing demand and possibly causing a downturn in its economy, and maybe a recession, which could impact north of the border too.

Martin warned about getting too heavily into debt. He cited figures from Statistics Canada which state the average Canadian household debt is about $5 for every $4 of income, and he wondered what would happen when households are no longer able to service their debts. He stressed the obligation of the municipality to ease the financial burdens on these people by "ruthlessly" controlling property taxes.

The hope is coming development will help pay the costs of the sewers in King City, but he wondered what would happen there if there's a drop in the housing market. That could mean the Township facing an expenditure that had not been anticipated.

Martin also pointed out the 10-year capital forecasts call for some $75 million in spending, and he wondered where that money was likely to come from. He said it wouldn't be realistic to just add $7.5 million to the tax bill every year.

Financing options in the short-term, he said, could include making recreation programs completely selffunded, or "extremely tight control of expenditures"

In the medium-term, he suggested increasing development charges and other fees, eliminating King's contribution to the GTA pooling money that goes to Toronto, and getting rid of tax anomalies for farm properties and schools. He said the current system means taxpayers are supporting valuable horse farms owned by wealthy people. He stressed the need for farmers to be supported, but argued it was a job for the federal government, not municipalities.

He also suggested collecting tolls on some roads.

Long-term options included having the municipality decline to assume roads in new subdivisions (he added such a policy has been upheld by the courts). He also said land being held for future development should not be taxed as farmland.

Martin also said the Township should be run like a business. "I believe this is essential," he commented, adding councillors are supposed to be stewards of taxpayers' dollars.

He suggested a councillors' finance committee be formed to vet and authorize payments; that each check issued by the Township have at least three signatures, including two councillors; and that any expenditure going more than five per cent over budget has to be reported to council.

Councillor Jack Rupke wasn't too enthused with charging more for recreation programs. He pointed to health problems that have been raised because of obesity.

Mr. Somerville pointed out a lot of things Martin was suggesting were matters that the Township has no authority on, such as the GTA pooling, which is mandated.

He added there are areas when costs could be cut, but pointed out they represent services in a lot of cases. "We're in the business of providing services," he declared.

As well, he observed the $75 million does not represent committed expenditures, and won't until council says they are.

Robin Pereira, secretary of the Nobleton Women's Institute, lobbied for more money to fix problems at the community hall in the village.

She said she's been hearing complaints for the last three years that the roof leaks. They have also been told the kitchen doesn't measure up to health regulations, and she asked it be brought up to standard. The new furnace in the building is not working well, and she wanted something done while it's still under warranty. She also asked that the freezing of pipes in the kitchen be examined.

"We do not want any more surprises," Pereira declared, adding they were not calling for anything excessive, but just to have "necessary and immediate repairs" taken care of.

Director of Building Services Brian Grubbe told councillors he was not aware of any leaks, adding the roof has been repaired a couple of times. They are working on the frozen pipes, and he said they have been having trouble fitting in the new furnace with other systems in the building, but that issue is being addressed and money for it is proposed for the budget.

Parks, Recreation and Culture Director Catherine Purcell said she's been told it will cost about $10,000 to replace the shingles and roof boards, and Grubbe said another $10,000 would address the issues in the kitchen.

Councillor Linda Pabst observed that $20,000 could deal with a lot of the problems concerning the building.

Pottageville resident Debbie Schaefer said a 5.99 per cent tax increase is not acceptable. She said taxes have been rising significantly over the years, with a house taxes at $1,700 in 1999 now being hit for $3,500, or more than double. Had taxes been increasing according to the rate of inflation, the bill would only be in the area of $2,200.

Schaefer said it's not clear what value is being realized from these taxes.

She said salaries and benefits seem to take a lot of money in the budget, with staffing numbers increasing. Salaries and benefits took up 36 per cent of last year's budget, she said, and the latest proposals state it will be about 42 per cent of this year's.

"It looks to me like it's out of control," she commented.

She addressed roads in the township, suggesting some measure like traffic calming in needed to make them less attracting to commuter traffic passing through King, yet she said there's no mention of that in the budget.

"It looks to me like a we've made a decision, and it's a decision that I don't like," she declared.

King City resident Ron Coles said he wanted something done about the new ditches on Kingslynn Drive.

"They're enormous in width and depth and steepness," he charged. "They'd challenge a mountain goat."

He added some of them have water, six to eight inches deep in some places. That could be dangerous if a child were to fall in headfirst, and he also pointed out that standing water could be a breeding area for mosquitoes, raising the hazard of West Nile virus.

Former councillor Steve Pellegrini was also concerned about the salaries being paid, as he pointed out the number of eligible electors in King actually dropped between the 2003 and 2006 municipal elections. He also didn't like the idea of major debentures, and called for effective and efficient use of tax dollars. He said the tax increase should be no greater than the inflation rate.