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CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C3A6 TELEPHONE 623-3379
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF
JUNE 14th, 1982.
TR-30-82
SUBJECT: 1982 ONTARIO BUDGET
RECOMMENDATION:
It is respectfully recommended:
1 . That this report be received for information.
BACKGROUND AND COMMENTS:
In response to Resolution #GPA-706-82:
WHEREAS the Town of Newcastle has set its 1982 budget
for the current fiscal year;
AND WHEREAS the estimates were based on existing Ontario
Sales Tax legislation;
AND WHEREAS the expenditures made no provisions for
Ontario Sales Tax other than those recorded in existing
Provincial legislation;
AND WHEREAS the implementation of this new sales tax on
Ontario Municipalities is another shift of expenditures
from the Provincial level of government to the municipal
level of government;
AND WHEREAS the increased cost of OHIP is another cost
to the municipality not accounted for in our 1982 current
budget;
AND WHEREAS Ontario Municipalities do not have the right
to deficit finance, these costs to the municipalities
as a result of the Provincial budget will necessitate the
lowering of services;
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NOW THEREFORE BE IT RESOLVED that Members of Council request
that the Treasurer provide information for discussion at
the next General Purpose and Administration Committee
meeting with respect to the effect that the Provincial
budget will have on the 1982 current budget of the Town
of Newcastle, in particular such areas as sales tax and
increased OHIP costs.
we have endeavoured to evaluate the impact on this municipality of the recent
Ontario Budget.
The main impact of the budget related to the sales tax exemptions which have
been removed on such items as capital works construction, building materials,
capital works maintenance, purchase of trees and plants and fixed price contracts.
In addition labour charges for the installation, repair and maintenance of tangible
personal property by labour forces other than the municipal forces, will now
be subject to sales tax. The increased sales tax applied to the aforementioned
items cannot be definitely established as many of the major contracts included
within the 1982 budget have not been broken down as to the costs of labour,
materials and other services. Any contracts awarded prior to May 14, 1982 will .
have the benefit of the sales tax exemption available in prior years, ie: cold
mix, prime and bituminous surface treatment. The increased cost of the sales
taxes to the municipality may be conservatively estimated at $20,000.00 to
$30,000.00, although the real cost will not be know until later in the year.
Each department with projects which are now subject to sales tax will have to
watch their budgets carefully and if costs escalate beyond the budget amount on
a given project be prepared to reduce the 1982 program for their department.
The increase in OHIP premuims which are paid 100% by the Town for its employees
will result in an over expenditure in this area of approximately $2,000.00
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TR-30-82
In conclusion, staff will have to be aware of the increased costs associated
with this change in the provincial legislation and be prepared to possibly
sacrifice programs to make up for the costs overruns.
Respectfully submitted,
Kathryn A. Campbell , C.A. , B.Com. ,
Treasurer.
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