Wellington County passes 2021 budget with 1.2 per cent levy increase

WELLINGTON COUNTY – Wellington County council has approved the 2021 budget with a slight increase to the county portion of property taxes. 

The tax levy increase has been set at 1.2 per cent, or $8 per $100,000 of assessment. 

A press release from the County of Wellington note the following highlights from the budget:

• $4 million investment into rural broadband over five years
• Improvements to curbside collection with weekly recycling and organics, bi-weekly garbage and monthly leaf and yard waste from April to November
• Investment in roads capital infrastructure and public works facilities over the next ten years
• Planning for the opening of phase two at the Riverstown Landfill
• Funding to begin planning and property acquisition for a new Erin library
• Additional resources to the Wellington Terrace Long-Term Care Home
• COVID-19 business recovery fund

Warden Kelly Linton said in a press release county council passed a reasonable budget considering the circumstances. 

“The 2021 budget addresses additional services, needs and supports within the community and our local economy as a direct result of the ongoing global pandemic,” Linton said. 

“With a modest 1.2 per cent tax increase, this budget balances the unique financial challenges faced by our residents and businesses with our need to continue to fund the delivery of essential services.”

Staff had been directed by county council to at least cut in half an earlier tax levy increase figure of 2.5 per cent. 

This has been achieved through some delayed hirings, increased revenue estimates and adjustments to expenses. 

The most significant method to achieve the tax cut was by using 2020’s year-end surplus which treasurer Ken DeHart said by email is an unusual move.

“Utilizing the surplus is not a sustainable source of funding, it is only a one-time source – which is why it’s not typically recommended to put into an operating budget,” DeHart said. 

This is also why they have chosen to take $2 million from the surplus used over three years.

This funding will be phased over three years with each year using less each time.

DeHart explained this minimizes the impact on future budgets from losing that revenue source.

At Thursday’s county council meeting, councillors were very thankful staff had achieved what they had directed under a tight deadline of three weeks. 

Wellington North mayor suggested they begin the budget process earlier so they can give staff more time to look at options to reduce tax levy increases. 

Many councillors agreed it was unfair to direct staff to further cut the tax increase on short notice.

“I too think we have to direct staff much sooner, it’s not fair to staff to do it three weeks before we pass a budget,” said Ward 4 councillor Steve O’Neill. “As a council, we need to be better and need to be directing staff much sooner than we did.”

Ward 5 councillor Mary Lloyd said she was thankful the changes didn’t mean more debt for the county, which was an option available for staff to reach the desired tax cut.

Linton too was glad to see staff exceed the target set by council. 

“I heard the comments loud and clear, let’s start this process a little earlier next year,” Linton said.