The budget process began over nine weeks ago with a pre-budget consultation on Feb. 2. The first draft was tabled March 18 showing a total operational increase of about 5 per cent, with no increase in the capital budget. At that time council chose to add the replacement of the Gravenhurst arch to the capital budget, resulting in a revised draft budget increase of just under 7 per cent.

A further increase in the operating budget was added to the draft on April 1, providing support for the seniors’ centre and chamber of commerce to peg the increase at 7.17 per cent.

The operational tax rate increased by 5.39 per cent and includes services and items not included in the 2007 budget, such as a payment for a new fire truck, additional clerical support for the fire department, increased train station support, a full-year salary for the economic development officer and one-time consulting costs under economic development and planning. These items represent a 3.7 per cent tax increase on their own, said corporate services chair Lou Guerriero, leaving the net year-over-year contribution to the total increase at less than 1.7 per cent.

Only two deputations appeared before council and committee regarding the draft budget.

This was disappointing to one deputation, Ross Ashforth for the Greater Gravenhurst Residents’ Association who spoke again on April 8 prior to council approving the budget.

“The public seems to be somewhat apathetic to the budget in principle and that somewhat disturbs me,” he said. “It’s a very important document. Perhaps part of the apathy is caused by the perceived indifference on the part of council on matters of public opinion and importance. They feel perhaps their voice bears no weight.”

In past presentations to council, Ashforth stated concern over the salaries and wages portion of the municipal budget and recommended an independent study be made of all levels of present staffing functions and operations.

A former treasurer for the town, Ashforth said he wondered if the “bureaucracy has become somewhat inflated.”

“We have not increased our staffing levels,” corporate services chair Lou Guerriero responded. “We use outside salary studies every three years to evaluate and adjust our wage rates. Any increases this year are a direct result of our 2007 study.”

Guerriero said comments implying that wages are out of control and that an effectiveness and efficiency study is required “are simply not correct,” noting the municipality is keeping in step with the sector.

“Effectiveness and efficiency is ongoing throughout the year, every year,” he said.

Councillor Bob Colhoun said spending 49 per cent of the operation budget on salaries is not out of line with other municipalities.

Guerriero also responded to comments made by Ashforth that the town was not managing its reserves properly.

“Suggestions of cutting capital projects or borrowing money from financial institutions and paying interest to the institution rather than borrowing from our own reserve and returning the principal plus interest to ourselves make no sense and would not be considered good financial planning,” Guerriero said.

Ashforth pointed out reserves have dropped 34 per cent or more than $4.46 million in just three years.

“Such reliance on reserves for capital expenditures, in our opinion, is excessive,” he explained. “Current fund levying and debenturing should be much more employed.”

The potential purchase of the Simcoe Muskoka District Health Unit building for $3.2 million by debenture over 40 years struck a chord with Ashforth both on April 1 and 8.

Ashforth said the ultimate cost to the municipality will be $9.5 million and “done only for a short-term financial benefit to this council.”

On April 8, Ashforth called on council to include a feasibility study of the magnitude and implications of moving town hall to the health unit building. The study, he said, would include an efficiency and effectiveness review of all operations, determine if the space is warranted, estimate costs associated with renovating the health unit building to accommodate municipal operations and evaluate the estimated annual maintenance costs.

“I think the doctors masked the intent of council, which was to all along get a hold of that building at all costs,” Ashforth said. “I believe the dilemma has masked the real intent of acquiring the health unit building. I’d like to be persuaded we’re doing the right thing.”

Guerriero said the public health building is expected to have a useful life of over 40 years and it is common practice to spread the cost of acquisition over as many years as possible to those who benefit from the asset.

“There is no financial benefit to council, but there is to the taxpayers,” Guerriero replied.

In summary, Guerriero called the budget “responsible”, adding it balances the needs and wishes of the public, needs of the town as a whole and respects the impact on the taxpayer.