Taylor Pushes for More Budget Cuts

ERA BANNER
By Teresa Latchford

Would you rather pay $55 more a year for property taxes now or wait a little longer and hope to pay less?

In the original draft of Newmaket's capital and operating budgets, you faced a 4.9-per-cent hike, which translates into an extra $55 a year on a $300,000 house.

After review by staff and council, the increase was knocked down to 4.31 per cent or about $49.

But Regional Councillor John Taylor thinks the town can go lower.

He submitted a proposal to fellow councillors and staff suggesting more cuts to the operating budget that aren't classified as wage-related, essential or fixed such as debt repayments and insurance. It could mean a hike of only $36.

However doing so would delay the budget process.

"Many people in our community have been forced in these economic times to cut costs and we must do the same," Mr. Taylor said.

His proposal, which he said is an attempt to reduce taxes in a way that minimizes service level reductions, could potentially shave 1.1 per cent off the increase, paring it down to 3.21 per cent.

"Typically, cost-reduction suggestions are usually all or nothing," Mr. Taylor explained. "But, this way, there would be 3.5 per cent fewer flower boxes on Main Street or 3.5 per cent less time on the outdoor skating rink."

However, the process is complicated and there are some things that need to be considered while assessing the proposal, CAO Bob Shelton pointed out.

"I only need to look outside the window to know it is still snowing," he said, making it clear the snow removal budget shouldn't come without flexibility or there's a risk of running a deficit. "If we push it (the hike) down any further, it would mean service cuts."

Putting off maintenance and specific projects could cost more in the long run as well.

Mayor Tony Van Bynen said he has serious concerns, as well, considering it is not within the town's power to control the weather or the economy, explaining this week's drop in interest rates cost the town $136,000 in interest on its reserve funds.

As well, some of Mr. Taylor's proposed reductions target programs that bring in revenue.

"I don't mind cutting the budget to the bone," Mr. Van Bynen said. "But it is risky to cut it through the bone."

Last year, council faced a $900,000 budget shortfall and since municipalities are not allowed to carry a deficit, it was automatically carried over to the next budget. Staff was able to whittle it down to $100,000, but if they hadn't, it would have meant an additional 2.6-per-cent increase.

Council has more responsibility this year to trim expenses and taking a look at a proposal couldn't hurt, Councillor Chris Emanuel said.

"I don't think residents mind when the budget is passed," he said. "We are taking a little more time to make sure we have done everything we can."

Councillors plan to discuss a revised budget schedule during Monday's meeting, which starts at 7 p.m.