HawthorneVillager.com

This is way down from prior years of over $1 million for reasons that seem complicated. The surplus for snow removal alone was $812k.
http://www.milton.ca/MeetingDocuments/C ... ntries.pdf

This year staff wants the surplus to go mainly to Bad Debt and Winter Control reserves. Last year they had a great idea and allocated half the surplus to the Hospital Expansion Reserve but council did not make it an ongoing policy. If policy was to allocate the surplus to the Hospital and Infrastructure reserves, it could replace the special taxes we are paying now.

This report is on the Admin. and Planning Committee agenda tonight. I wonder if it will get any discussion.

Thanks for posting this. Its a questions I'll be bringing up tonight.

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Mike Cluett
Local/Regional Councillor
Wards 1,6,7 & 8

Website | Email mike@mikecluett.ca | Cell (647) 888-9032 | Facebook Page | | Twitter @Mike_Cluett

Thank you Mike. It is good to know that a councillor is interested.

Thanks for posting it, it was an interesting read.

Mike are you concerned at all about under-spending? It's great to say "bonus, the Parks dept saved a million dollars", but how about making sure we are actually taking care of the parks before transferring the money to other funds and carrying it forward to bad debts.

I think most would agree that our parks are not maintained well enough, resuting in overflowing garbages and the most dandelions I have ever seen in one place.

Also I think that the swimming and recreation services should be seen as not-for-profit, so that any surpluses in those areas should be re-used for enhanced services.

That's my take.

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At Your Service Computer
At Your Service Security

Thanks Garlis,
AYS Mark, if swimming lessons weren't already so affordable relative to private swimming I'd agree with you, but after reading that report and based on last year's budget discussions and knowing the hospital expansion is due to open in approximately 2015 if I recall correctly I think I'd like to see some discussion on some of that money being directed to the hospital reserve and infrastructure reserves. If I read that right, there's $150K being carried forward into 2013? Is that up for discussion for transfer into reserves? Maybe 100K of that into the Hospital Reserve? I believe Councillor Barklay has inquired about a program to investigate low-water, deep root grass seed for aiding weed control? I'd like to see that invested in. It's got real potential to improve weed control and park appearance during really dry summer weather while keeping park maintenence costs down in the long term rather than simply throwing money a herbicides (which only address the dandelion season and not grass kill in really dry weather).

The surplus issue is about the disposition of over-taxation on the approved budget of the previous year. Council should be providing guidance to staff based on available choices:

1) Use the over-taxation of 2012 to reduce the tax increase for 2013. In this case, the increase could have been about 1.5% instead of 4%. The problem is, unlike any private corporation I know, the Town is unable to provide a reasonable forecast of yearend when the budget is done in December.

2) Use the over-taxation of 2012 to budget more spending (weeds?) in 2013. As above, the estimates of surplus are not available for consideration at budget time.

3) Spread the surplus over various reserve accounts to add safety. I am not aware of council ever discussing the proper level for these reserves. In Milton’s case, there is a backup for individual reserves since there is a lag of one year between receiving and spending the $5.5 million of slots revenue. There are also long term reserves building for hospital expansion and infrastructure. Two belts and two sets of suspenders maybe?

4) Apply any surplus to hospital expansion and infrastructure reserves where we know it will save tax increases later.

5) Let staff apply the surplus wherever they want.

Its not a matter that it should be applied to hospital/infrastructure right away but there are other areas in our spending that should be looked at to apply the savings. I think we need to look at what council's priorities are on where the surplus is to be applied to before jumping right in to one or the other.

Every year since our council has been elected, the town has come forward with a surplus. This years was lower than most but still, almost 3/4 million dollars is a large surplus. I'd like to see council discuss where its to be applied. Im with Garlis in saying that, although we've been told many times, we cant take into account a surplus while budgeting, it is possible we could have approved a lower rate of increase (say something comparative to the rate of inflation) which actually would have got more council support instead of the 6-5 votes weve been getting.

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Mike Cluett
Local/Regional Councillor
Wards 1,6,7 & 8

Website | Email mike@mikecluett.ca | Cell (647) 888-9032 | Facebook Page | | Twitter @Mike_Cluett

Perhaps Council could delay approving the budget until surplus is "known" and build its use into the full budget discussions. Or alternatively force Staff to give a best estimate of surplus at budget time and more importantly let the public comment on its use!!!!

Martin

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Martin Capper

HVRA member

www.cappercares.ca
www.MartinCapper.com

I say raises for all council members as this surplus is directly related to their hard work and strategic planning.

Great work Tony!

How about you give the surplus back to residents as a cheque in the mail? I mean, isn't it our money to begin with?

We could build another velodrome in east Milton!
What a great idea, don't you think?

Or get grascan to do some construction and bill us, when they just sat around for many hours instead

Mike

Thanks for raising this last night. I have to admit to being surprised that there was so little debate on this issue and I assume that is because the A&P Comm merely voted to receive the report for information knowing that decisions would be taken by full Council.

A few questions if I may

The increase in Bad Debt Reserve - What has changed since December that is provoking this?
- Was an increase in Bad Debt Reserve identified in the list of priorities that Staff put forward and therefore subjected to Council vote in the budget process?
- Is this a specific provision against specific debts or just a general reserve?

Naturally these are questions that would have been raised during the Budget process and I would suggest that Council needs to find a way to incorporate surplus discussions effectively into the budget. Other municipalities can do it - you and others promised to bring Milton into the 21st century - on this issue you are not there yet!

Martin

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Martin Capper

HVRA member

www.cappercares.ca
www.MartinCapper.com

See the article: "Surplus refunded to taxpayers under Gov. Rick Perry’s plan"

http://www.texaswatchdog.org/2013/01/su ... 780.column

Excerpt: “We've never bought into the notion that if you collect more, you need to spend more,” Perry said.

From my post 1 year ago:

" The 2009 surplus was $1.9 million. The recommended disposition to reserves got no discussion by council.

The 2010 surplus was $1.3 million. The recommendation to transfer it all to Property Reserves also got no discussion from council. Council did however approve a 2011 1% levy to put about $300k into a hospital reserve.

The 2011 surplus is $1.8 million. The report is on the agenda for Monday's Admin Committee meeting. Full credit to staff for recommending that $500k of the surplus go to the hospital reserve account. The remainder is recommended to go to other reserve accounts. "

A 1% tax increase is worth about $300k. Thus the stream of surplus over 4 years ranges from 6% to about 2.3% per year in over-taxation.

Council needs to get involved in the disposition of surplus. It ain't all about transit and velodromes.