Raise not enough to cover shortfall
TEHKUMMAH—Tehkummah Township council has voted in favour of a 10 percent increase in the municipal levy for the 2025 budget, which council passed last week.
After a special council meeting held on September 3 and a meeting September 9 where the budget was passed, Leanne Crozier, consultant with E4m, provided council with four options for the increase to be imposed, of five, eight, 10 and 12 percent. She had indicated in an overview of the budget that there was a need to cut approximately $500,000 to offset the shortfall and council discussed potential cuts.
With the 10 percent increase in municipal taxes, it reduces the shortfall to $200,082.
The decision to pass a 10 percent budget increase was debated at last week’s meeting. When the vote was taken as to what councillors favoured for an increase, Councillor Mike McKenzie initially had voted in favour of a 12 percent increase, with Councillor Steve Wood opting for 10 percent and Lorie Leeson in favour of an eight percent increase. Councillor Perry Chatwell, who was not in attendance at last week’s meeting had indicated at the previous meeting he would not be in favour of any increase over eight percent.
With the divided vote, Councillor McKenzie said, “I will go with a 10 percent increase to move this forward.”
Peggy Young-Lovelace of E4M, consultant with governance and community development (who had been requested by the township to provide clerk duties and council meetings for a six month period) said, “When council first started looking at the budget numbers, it was at a 51 percent increase in taxes.”
“We started at 51 percent and were able to take it down to 10 percent,” said Councillor McKenzie.
“Even with changes in the budget, there will still be a shortfall of $200,082, with the 10 percent (tax) increase overall,” said Ms. Crozier. She explained in looking at the tax increase options, with a 4.9 percent increase it would leave a shortfall of $279,581, a 7.9 percent increase would leave a shortfall of $231,881, 10 percent would leave a shortfall of $200,082 and a 12 percent tax increase would leave a shortfall in the budget of $168,282.
She pointed out, in capital under the budget, the township had total revenues of $319,252, with expenses at $571,150 with the 10 percent increase. “In a perfect world these two figures would be a lot closer.”
It was pointed out the township has been without a treasurer for over a year, and has not had a permanent clerk since the term of this council started.
As well, the township’s previous auditors, MNP, had provided an audit of the township in 2020, 2021, 2022, but the township needed to hire another company to get these records completed for 2023 and 2024.
With the 10 percent budget increase, it provides for the township to purchase a needed new snowplow, allows for the services the township has to continue and has put some monies toward infrastructure bridges that need to be repaired.
Mayor John Deforge told The Expositor after last week’s council meeting, one of the main reasons for the shortfall the township is looking at is, “the previous councils neglected to put away or do any infrastructure repairs. We have a total of eight bridges that require work to be done on them. In my opinion, keeping up with having infrastructure work carried out is the job of a council.”
E4M will be working with the township to do an internal service review/audit and a level of service bylaw, looking to sustaining services the township provides, in the future.
Both Ms. Young-Lovelace and Ms. Crozier said the township needs to have an asset management plan carried out, something the province has mandated all municipalities have in place.
“The current situation is not the fault of the township staff, this (financial difficulties) is something that has been in the works for years, and the current office staff is doing the best it can,” said Ms. Young Lovelace. She said having an asset management plan in place is critical.
