Pelham's 2016 Operating Budget Approved

Council recently approved the Town’s 2016 Operating Budget. The new budget translates into an increase of approximately 7.86% (or $107.44) on the Pelham portion of your property tax bill for the average residential property (assessed at $309,200).

Since Pelham’s portion of your property taxes represents roughly 37% of your overall residential tax, we anticipate the average “blended” increase – including the Regional and Provincial portions – to be around 2.9%.

In preparing for the operating budget, Council directed Staff to review all expenditures against customer service needs and the Town’s strategic plan.

The overall budget increased by $792,873 (net). The major increases over 2015 include:
• A $269,830 transfer to the capital reserves to help enhance and maintain our excellent infrastructure and build on the $175,979 that we added to capital reserves last year;
• $79,629 for increased maintenance and $49,731 for increased utility costs for Town facilities;
• $11,007 to increase the Pelham Public Library grant to fund the Library’s cost-of-living-adjustments (COLA) and to double the hours of the renewed Maple Acre Library branch – from 14 to 28 hours per week – starting in November.
• $250,786 for Staff wage and benefit increases. This includes a 1.3% COLA increase, performance management compensation, and required benefits increases (of approximately 10%).
• And $416,984 for additional principal and interest payments. (See below for more details.)
These net to an increase of $792,873 because of the benefits of new assessment growth ($184,469) and of other expected revenue increases ($100,625).

As I wrote about a few weeks ago, Council earmarked $37 million in the Town’s 2016 Capital Budget toward constructing a potential Community Centre. We did this because we are getting close to a final draft design and so that we might be “shovel ready” for potential investments from upper-levels of government.

So that we might be further ready, Council now earmarked operating funds for principal and interest payments that would allow the Town to purchase at least a $5 million, “re-payable,” 30-year debenture from Infrastructure Ontario (at an estimated rate of 3.48%). Council would only approve this debt if we proceed with a proposed Community Centre; if we do not proceed in 2016, the funds will accumulate in a special reserve.

Draft Designs Soon: On a final note, the Architect and Construction Manager anticipate that they can present draft designs, including elevations and more accurate construction cost estimates, by March 21. Council wants to understand your thoughts and feelings on the proposed design and financing of a potential Community Centre in late-March and early-April before we make further determinations. We look forward to that informed discussion!

For more information about Pelham’s Operating Budget, please click here.

2016 Capital Budget and Major Projects

Infrastructure Minister Amarjeet Sohi speaking at the
Toronto Region Board of Trade (Photo: CBC News)

Since both Town and Regional Councils approved 2016 Capital Budgets, I want to inform you about some major improvements planned for Pelham this year. Let’s start with a couple of the biggest.

Pelham Community Centre:
As I wrote about previously, Pelham Town Council earmarked $37 million in the Town’s budget toward constructing a potential Community Centre.

I purposefully use the word “earmarked” because we included what’s like a place-holder in the 2016 capital budget. In the case of the potential Community Centre, both the design and the spending of any of these funds will have to come back to Council for approval.

Why did we do this? The major reason is so that this project might be eligible for government grants. You see, previous Federal and Provincial grants only funded projects that local Councils already included in their approved capital budgets.

In fact, in his speech to the Toronto Board of Trade last Thursday, the Honourable Amarjeet Sohi, Canadian Minister of Infrastructure and Communities, stated the Government’s desire to invest $10 billion in infrastructure projects now – to help stimulate the economy. He stated that he trusts municipal governments to set priorities and that he wants both “shovel-ready” and “shovel-worthy” projects.

By earmarking these funds this year and by working to finalize the design this spring, I hope that we can be well positioned for Council to consider proceeding with this important project this year.

Maple Acre Library:
You may recall that last year we budgeted $1 million for the design / build for a renewed Maple Acre Library. Now, we will proceed this year with the construction.

Since last Fall, the Maple Acre Advisory Committee worked with an architect and builder toward a design that meets the Town’s guidelines for Civic Landmark Buildings, enhances the heritage / original portion of the Maple Acre Library, and adds-on a “learning commons” with “rentable, flexible, multi-purpose, open space.”

Last Wednesday, the Maple Acre Advisory Committee approved “Option A” as the design for the new library facility. The Committee considered more than 130 comments – gathered during a public open house, through comment sheets at the Pelham Arena and Pelham Libraries, and via an online consultation – and agreed with the 72% of those who chose “Option A” over “Option B.”

I’m thrilled the Town will reconstruct Maple Acre into a state-of-the-art library while honouring nearly a hundred years of library service in Fenwick. I look forward to people enjoying the renewed facility for many years to come.

More about our other planned capital improvements for 2016 next time.