The Citizen - January 12, 2024

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2 • Art 8 • Sports 10 • Alzheimer’s 15 • Obituaries

The

THIS WEEK

Citizen

Huron County’s most trusted independent news source

Friday, January 12, 2024

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Volume 40 No. 2

Publications Mail Agreement No. 40050141 Return Undeliverable Items to North Huron Publishing Company Inc., P.O. Box 429, BLYTH, ON N0M 1H0

Budget process begins in M-T By Scott Stephenson The Citizen

You can’t win score ’em all The U11 BB Huron Heat welcomed the Grand River Mustangs to the Blyth and District Community Centre on Saturday for a regular season game and sent the

visitors home on the wrong end of a 3-2 score - another win for the team that regularly calls Blyth home on Saturday afternoons. (John Stephenson photo)

3.9% capital levy increase pitched in HE By Shawn Loughlin The Citizen Huron East Council has commenced its 2024 budget process, moving forward with reserve usage and capital deferrals to maintain an estimated 3.9 per cent increase to the capital levy. Council held its first meeting of the budget process on Dec. 20 - its final meeting of 2023 - and Chief Administrative Officer Brad McRoberts made a lengthy presentation to council with this year’s budget proposal and the status of the municipality’s reserves. He proposed three options as jumping-off points to begin the budget process. First, he proposed funding the levy with the use of debt, which would lead to a 3.6 per cent capital levy increase, as the budget stands now, while his second proposal omitted the use of

debt, meaning a 13 per cent capital increase in 2024. His third, and recommended, option was to fund by deferring capital expenditures, using available reserves to offset taxation-based capital expenditures. All three proposals include an assumed eight per cent increase to the municipality’s operating levy in 2024, meaning a potential total levy increase for the first option of 11.6 per cent, 21 per cent for the second and 11.9 per cent for the third. They also use all available reserves to offset taxation-based capital expenditures. Furthermore, McRoberts also included capital levy projections for the next five years. The first option would result in capital levy increases of 3.7 per cent in 2025, 2.2 in 2026, 2.6 in 2027 and 2028 over and above the municipality’s established annual capital levy increase.

“In this scenario, we are using all available reserves to offset the taxation-based capital expenditures, primarily the Seaforth and District Community Centre roof replacement. We are also increasing the capital levy by $338,500 or approximately 3.6 per cent. Note: this does not include any operating levy requirement,” McRoberts said of the first option. “With the use of all the available unrestricted reserves, we are still requiring the need to borrow $900,000 to fund the $1,600,000 roof replacement for the Seaforth and District Community Centre. Assuming a 10-year debenture, the total interest cost over a full 10 years, based upon a five per cent interest rate, would be $245,650. The Seaforth Community Development Trust has indicated that they would have $700,000 available to lend to the municipality in an open debenture (i.e. could be

paid in full or part at any time) at the interest rate defined by Infrastructure Ontario at the time of the issuance of the debenture. At the time of this report it was unknown if the Brussels Trust would be able to provide any funds for a debenture.” The second option, to fund everything through taxation, would increase the capital levy in 2024 by over $1.2 million, largely in order to pay for the roof replacement at the Seaforth and District Community Centre. The 13 per cent increase in 2024 would result in no capital levy increases - at least as proposed in the current budget from 2025 through 2028. “In this scenario, we are using all available reserves to offset the taxation-based capital expenditures, primarily the Seaforth and District Community Centre roof replacement. We would Continued on page 12

Treasurer Sean Brophy and senior staff presented the first draft of Morris-Turnberry’s 2024 budget at a special meeting of council on Tuesday, Jan. 9. In this draft, staff propose an increase of 8.05 per cent to the levy and an 8.4 per cent increase to the municipal tax rate. The 2024 county and education rates are not yet available, and other significant contributions and obligations are not yet known which will cause fluctuations in the next draft of the budget. Drainage Superintendent Kirk Livingston estimates that capital drainage projects for the year will cost $732,000, paid for through a combination of grants and cost recovery from landowners. Livingston noted that all of the budgeted drainage projects for 2024 have already received approval from council. Livingston boasted that an ATV purchased in 2023 is working out well for the department, making it easier to facilitate travel to harderto-reach areas. Mayor Jamie Heffer asked if rising costs associated with beavers and dams will continue to be a pesky issue for the drainage department, receiving an affirmative response from the superintendent. In his role as Chief Building Official, Livingston indicated that upwards of 2,400 changes to the building code are expected to come down from the province in 2024, with enforcement beginning in 2025 and further changes expected to follow in 2026 and 2027. To prepare for the new rules, Livingston recommends increasing the budget for training staff. Director of Public Works Mike Alcock advocated for an increase in contributions to the parkland reserve, stating that as the population of Morris-Turnberry grows, so will demand for parks. He also recommends earmarking revenue received from developers in-lieu of parkland, saying, “it seems logical to me that if we are collecting this money in-lieu of parkland, we should be putting it towards parks.” The Belgrave water system needs a new computer and operating system update, as the current unit, Continued on page 16


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