Spending on operations, capital improvements expected to reach over $80 million in 2019 as staffing costs, transfers to external agencies increase
Adam Bramburger
Beaver Staff
Lennox and Addington County is looking at tax levy increase of about 2.25 per cent for 2019 after council received a draft budget summary last Wednesday evening.
Director of financial and physical services Stephen Fox said operating and capital spending this year would increase to $80,750,900 this year. Factoring in 1.7 per cent in new growth revenue and income from grants and subsidies, transfers from reserve funds, money charged to other municipalities for cross-border ambulance calls and social services, and investments and fine revenue, taxpayers will be left with a levy for close to $27.5 million — which represents around 31 per cent of the budget. Their increased cost is $573,800.
Based on this year’s average residential property assessment of $249,042, a $1,252.72 tax bill for County purposes would include a $13.71 increase. In his presentation, Fox broke down where a resident’s annual tax contributions typically go.
“You can see that most of it is for roads and bridges, about $591, almost half the County levy. You can see there are some programs — social services, the John M. Parrott Centre (JMPC), paramedics services, those programs all receive a significant amount of provincial funding. In the case of roads and bridges there’s not as much provincial funding associated with that, so a lot of it falls on the property tax bill.”
In terms of the entire budget, salaries and benefits are a major expense line, coming in at 35 per cent, both capital expenditures and materials and services represent about 22 per cent, payments to agencies and individuals cost 18 per cent, and long-term debt payments are just under two per cent.
L&A County director of financial and physical services Stephen Fox walks councillors through a preliminary draft budget Wednesday night. (Adam Bramburger/Staff)
Operations are expected to cost $61.1 million this year, with $16.3 million directly supported through taxes. A two-per-cent increase in staffing is anticipated to bring the County to 332 full-time equivalent positions. The increase reflects the move to 12-hour paramedic services in Stone Mills, an additional paramedics superintendent, a GIS assistant, a project technologies in social services and dietary staff and a registered nurse for the JMPC. Staffing realignments have also allowed for the hiring of a small business development officer. Collectively, there will be a 4.2-per-cent increase in salary commitments and a 3.8-per-cent bump in benefit funding. The County also has collective bargaining ahead this year with three union employee groups.
Also factoring into operations, the County will see a 1.8-per-cent increase in the compensation it pays lower-tier municipalities for roads maintenance and a 1.75-per-cent bump in Kingston, Frontenac, Lennox and Addington Public Health contributions. The stipend the County pays the Municipal Property Assessment Corporation will also increase 1.9 per cent.
Corporate strategic planning, asset management planning, and human resources initiatives related to worker safety, employee engagement, and succession planning are also planned. There is also new spending planned for a tourism activation program and development of an off-road cycling network.
In social services, a five-year Early Years and childcare plan is in the works. The County also plans to fund seven transitional shelter units for the homeless and work to secure more units for vulnerable citizens based on rent subsidy programs.
The County anticipates spending $17,829,500 on capital expenditures this year, with an $11.15 million direct levy. Another $3.5 million will be drawn from reserve funds. Fox said the County levies not specifically for immediate priorities, but in order to have funds available when it is most efficient and effective to complete work. Roads and bridges will account for the lion’s share, with $12.33 million in spending. The third phase of Napanee’s Dundas Street reconstruction will be a major expense. There will also be 6.7 km of hot mix paving, with a majority of work on County Rds. 2 and 41 and 12 km of surface treated roads upgrades. The Forest Mills Bridge on County Rd. 12 and Salmon River Bridge on County Rd. 41 are scheduled for rehabilitation.
With respect to properties, the Stone Mills ambulance base is expected to be completed and outfitted. There are also plans to put a new steel roof on the Napanee ambulance base, and replace the HVAC unit at the County Memorial Building. Fox said the JMPC will also have some flooring and furnishing replacements as well as the installation of a new bell call system.
“The building is now 13 years old and you tend to see more repairs and replacements as the home gets older and older,” Fox said.
A number of upgrades are also planned at social housing properties.
The County will provide funding to support the land and construction costs for a new childcare centre in Amherstview and front the money to purchase the former Yarker Family School to retrofit for licenced childcare spaces.
There will be $300,000 allocated for information technology increases and some furnishings will be replaced within the library system and the museums.
Fox also reported to council on reserve funds and debt. The County entered 2019 with about $13.5 million in reserve funds and budgeted to bring that level down to about $10 million. Based on future projections, he believes the funds will be replenished by 2023.
Debt levels are just under $6.24 million, with $3.9 million of that remaining from the JMPC construction. Other debt comes from a private social housing project the County absorbed and the local share of the KFL&A Public Health debt. In five years, Fox expects most of that amount to be paid down with about $1.285 million remaining — provided more debt is not incurred.
Councillors also heard Wednesday the budget they’re approving might be in a state of flux due to uncertainty in provincial transfers as part of the Ontario Municipal Partnership Fund. Chief administrative officer Brenda Orchard said the County is waiting to hear from the new government on the money that will be transferred. The province has been paying half of ambulance costs and s significant portion of social services and long-term care costs.
Lennox and Addington budgeted for the new Stone Mills base based on those numbers and it has held off on capital allocations for a new Loyalist ambulance base until more clarity is received. Social services budgets could also change.
“It is a year when we have a new fiscally conservative government that has a majority,” Orchard said, adding that while the County has appreciated some of its moves to cut regulation, it’s aggressive change agenda has created uncertainty. “Department heads are really watching to see how this government funds social services. It’s an uncertain year,” she said. “We’re on pins and needles to see what we get from the province this year.”
A requested contribution to the University Hospitals Kingston Foundation would be in addition to the numbers that Fox presented. Some members of council found the ask of $1 million spread over five years higher than they could stomach, particularly with the uncertainty at the provincial level. Councillors planned to discuss that donation request at this Wednesday’s working group session (after press time). Orchard suggested whatever figure they arrive at, they might want to put firm conditions on a gift to ensure the project goes forward as anticipated.