Huge news out of Meaford where council is eliminating the municipality’s entire deficit.
The 2010 budget has been re-worked to wipe out the 2.8 million dollar deficit this year — without affecting the tax rate.
Treasurer David Kennedy says they will pull 1 million dollars out of the working capital reserve, borrow 1.2 million from capital reserves, and use 400 thousand of 2009 budget surplus.
Kennedy says Meaford’s blended (municipal, county, and education) tax hike would remain 4.67 per cent, or an extra 297 dollars for the average homeowner.
Kennedy says council’s original plan was to eliminate the deficit over 5 years but
the Ministry of Municipal Affairs and Housing has now asked them to do it in one.
He says the Ministry was content with allowing Meaford to move forward with their 5 year plan last year – but some ratepayers have now raised concerns about that.
Kennedy says the Municipal Act does state that you shall eliminate your deficit as the first expenditure in the next year’s budget.
Kennedy adds Meaford wasn’t in the financial position last year to be able to eliminate the deficit then.
But the first year of their 5 year plan allowed them to build up the capital and working capital reserves needed.
Kennedy says Meaford will stick to their 5 year plan and money that had been marked for deficit reduction will now go to debt reduction and rebuilding reserves.
Another public meeting on Meaford’s 2010 budget will be held tonight at Woodford Hall at 7 PM.
Council will then meet tomorrow at 5 PM for a final look at the budget, but it won’t be finalized until April 12th.