Pelham Council approves operating, capital, and water and wastewater budgets

FOR IMMEDIATE RELEASE
April 9, 2019

Pelham, ON – Pelham Town Council approved the 2019 operating, capital, and water and wastewater budgets, resulting in a 7.12 per cent tax increase after 2.01 per cent of new growth.

What this means to an average household assessed at $250,000 is an annual increase of $84.91 or $7.08/month; for $350,000 assessment the annual 2019 rate increase is $118.76 or $9.90/month; for $450,000 assessment the annual increase is $152.77 or $12.73/month.

The 2019 budget focuses on existing infrastructure maintenance and enhancement of programs and services, an acknowledgement of the investment required today and into the future.

“Council took a long, hard look at the numbers for 2019, and along with staff, made some tough decisions,” said Mayor Marvin Junkin. “I commend Council and staff for their work on this budget and look forward to completing critical repairs to roads such as Poth Street and Sulphur Springs Drive.”

Overall, the 2019 operating budget is $17,238,707 and the capital budget is $6,198,727. The following is a snapshot of some of this approved projects and services in this year’s budget.

BUDGET HIGHLIGHTS

Operating Budget

• New grant received for the second transit bus which will be operational starting in September 2019
• Additional staffing for Climate Change Coordinator which is funded 80% by a grant and a part time tradesperson
• Contracted services for MCC, transit, gypsy moths, snow removal, fire radio software, strategic plan and integrity commissioner
• There have been organizational changes and increases for merit, equity and benefits
• Debt payments on new debenture and interest for $4,018,355 which is for projects that have been completed and approved to be funded by debt
• Debt payments on new debenture for $1,700,000 to be paid by the pledge revenue from the donations at the MCC. This will not impact the tax levy.
• This will be a full year operations for the MCC. Expenses are projected to be higher than the original pro-forma by $529,623 of which $481,077 are the utilities. A one-time transfer of $425,500 from the MCC Reserve has been used to mitigate this large increase.

Capital Budget

• New radios for the fire department $305,000
• New roofs on Fire Station # 1 and partial roof Town Hall $45,000 & $47,000
• Foundation waterproofing at Town Hall $55,000
• Culvert replacement at Poth Street $400,000
• Sulphur Springs Drive repair $250,000
• Well replacement at Tice Road facility $30,000
• Pelham Street Storm and road reconstruction waiting for Council to lift the red circle since grant funding has been received (this will happen on April 15). This project is valued at $2,436,055 plus watermain replacement at $250,000 for a total of $2,686,055
• Road rehabilitation various projects $400,000
• Wastewater capital projects $302,500
• Haist Street watermain replacement $519,750
• Brushing the Swayze Drain $30,000

Water Wastewater Budgets

• A Water Wastewater Rate Study was completed in 2018 by BMA Management Consulting Inc. The last rate study was conducted in 2006. The rate increase for water is 7.5% and for wastewater is 9.5% keeping Pelham with the lowest rates in the Region. This is equivalent to $134.45 increase per average household for the most common consumption of 33m3 per year or $11.20 per month.