GRAVENHURST — Budget observations presented by the GGRA (Greater Gravenhurst Residents’ Association) seem to have struck a chord with Gravenhurst town council.
“I think that they are listening to us,” said the GGRA’s Ross Ashforth, who presented the organization’s submission to council on Feb. 16.
The GGRA has provided budget input annually to town council since the group formed nearly four years ago. The residents’ association represents approximately 200 members.
Ashforth, a retired municipal treasurer, heads up the GGRA’s internal committee that reviewed the municipal budget.
He commended council’s improved budget format, timing and process of releasing the budget early in February to provide a longer period of public evaluation.
He said he commiserated with council about budget preparations.
“It’s a big job this year. This is one of the most difficult budgets in years, but not as difficult as those in the future,” he said.
Ashforth acknowledged the 2010 draft budget contains fixed expenses such as $87,000 for the 2010 municipal election, $100,000 for the anticipated six-month cost of the harmonized sales tax, and a $250,000 contribution from the levy to reserves to purchase an aerial fire truck in the future.
“That $437,000 is not of your making,” Ashforth said.
However, the GGRA criticized the significant increase in net spending. The March 2 draft budget indicates the town will collect $7,969,677 through the municipal tax levy in 2010, up $595,035 or 8.1 per cent over 2009. The 2010 residential tax rate will be $309.30 per $100,000 of assessment or 0.0030930.
The GGRA’s submission also recommended the town limit the number of staff as salary, wages and benefits make up the single largest part of the budget.
Ashforth said no additional staff should be hired until the efficiency and effectiveness review, which the GGRA has pushed for, is undertaken.
At that same meeting, town councillors reduced the budget by about $114,000 by eliminating salary and wages for proposed new staff.
“I think they were responding to us,” Ashforth told this newspaper. “We had mentioned there were no restraints in the budget and we covered the area of salaries and what increase there had been 2009 over 2008, and 2010 over 2009. It was an area we zeroed in on where we felt we had some influence.”
Yet Ashforth also acknowledged it was the only area of the budget that council pared down on Feb. 16.
The GGRA also insisted council hold off on issuing further long-term debt until well after 2012. It also asked that council build up municipal reserves. Ashforth said it’s important that council does not allow excessive spending from reserves. He also pointed out nearly $20 million in current and anticipated debenture debt, in addition to the $6.9 million the town has used for internal financing.
“Are we mortgaging our future?” Ashforth asked. “It doesn’t leave much head room for the next council. It will be hard to find money for long-term projects when repayments are onerous.”
Corporate services chair Lou Guerriero responded to the GGRA submission. He said council is “investing in our future.”
“This council and councils before it have recognized that the long-term viability and vitality of Gravenhurst can only be achieved through growth,” Guerriero replied. “Growth comes through improving the town’s infrastructure, amenities and facilities in order to encourage the private sector to invest in our town and people to move to our community. We must all welcome and support that investment.”
He said individual reserves change in cycles. For example, the reserve balance on Jan. 1, 2008 was $5,814,787. It was $6,578,531 on Jan. 1, 2010 and is estimated to be over $7 million by 2011, Guerriero said.
He also detailed council’s recent large-scale investments such as Muskoka Wharf and the purchase of the Simcoe-Muskoka District Health Unit building. He also noted the imminent venture to contribute one-third of an $18-million swimming pool and arena expansion.
“Council’s job is to try to minimize the impact on local taxes and get the best value for the tax dollar,” Guerriero said. “We will have invested about $20 million for the wharf and Centennial Centre in order to get about $30 million in funding from the provincial and federal governments.”
Despite the GGRA’s input, Guerriero said in three years there has been little response from the public.
“I am very disappointed that, in spite of all our efforts, we continue to see the same three or four people commenting or criticizing every year without providing any constructive comments on what changes to specific services or programs council might consider to affect the tax levy,” he said.