An expected drop in Ontario Municipal Partnership Funding (OMPF) has Kincardine Council concerned when it comes to the 2010 budget.
Mayor Larry Kraemer says 621 thousand dollars in funding will disappear.
He says the municipality raises about 53 thousand dollars per percentage point from taxes.
He says when that’s divided into 621, it could mean a 12 percent tax hike when the money is gone.
Kraemer says options to deal with the looming shortfall include dipping into reserves and reducing services or staff.
He says another factor in the coming year is wage negotiations with employees and the possibility of a lower dividend from Bruce Telecom.
There was a tense moment during the council meeting when the issue was being discussed.
Councillor Gordon Campbell asked Chief Administrative Officer John de Rosenroll if he planned to “stop giving himself raises.”
Deputy Mayor Laura Haight interrupted and asked Campbell if his comments were really fair, stating what he was saying is not true, and that personnel matters are to be discussed in camera anyway.
Campbell apologized for his remarks.
Kraemer says council has directed staff to “do their best shot” at recommending a starting point for the 2010 budget and how to reach a solution everyone can live with.
Council will be holding a special pre-budget meeting at some point to discuss the issue further.
Kraemer is also writing Finance Minister Dwight Duncan asking for the funding to be maintained.
Other Bruce County municipalities are also facing a loss of OMPF funding.
Huron-Kinloss will lose over 647 thousand dollars, Arran-Elderslie and South Bruce will each lose over 269 thousand, and Northern Bruce Peninsula will lose over 251 thousand.