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Regions wants to build to stimulate economy

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Region on track for a small surplus

DURHAM -- Despite budget pressures in the works department, especially in the snow budget, the Region is projecting a $2.77 million surplus for 2008 in its general tax operations budget.

One of the key factors in the works department's $2.13 million deficit is that the Region is already $1 million over its snow budget for the year with possible storms still to come through the end of December.

And while it's been fairly mild in the south, finance committee chairwoman and Scugog Mayor Marilyn Pearce pointed out there's been plenty of powder in the north.

"We've got six-to-eight inches of snow north of the ridge and we've got a lot of roads up there," she said.

However, the shortfall in works is made up with surpluses in other departments, most notably in social services, which is projected to have a $3 million surplus. Although the Ontario Works caseload has risen since last year, the Region adequately budgeted for the increase.

As for other budgets outside of general operations, the water and sewer budgets are looking at $1.6 million and $1.8 million surpluses, respectively, the waste budget is in a break-even position and Durham Region Transit is looking at a loss of $210,000. Though still a deficit for DRT, lower fuel costs in the latter part of the year have mitigated the damage done by soaring gas prices in the summer.

Durham to put a rush on infrastructure projects slated for 2009

Dec 04, 2008 - 10:28 AM

By Reka Szekely

DURHAM -- Durham is planning on putting a rush on infrastructure projects in order to stimulate the local economy.

As part of his economic update, Finance Commissioner Jim Clapp recommended expediting infrastructure projects which were to be included in the 2009 budget and are ready to be put out to tender.

Even if not all of the winning contractors are local businesses, they'll still bring business to the Region, said Mr. Clapp.

"Either way you're going to help the economy, not only with the projects but with whatever spin-offs there are from the projects," he said.

As well, the economic downturn means the Region is getting lots of bites from contractors on tenders and Mr. Clapp is looking to take advantage of good deals.

"I think this is a hungry economy right now," he said.

As for Durham's struggling auto industry, he said there's little the Region can do.

"There's nothing directly we can do to assist General Motors or the feeder plants," said Mr. Clapp. "It's really to be prepared for the fallout."

The Region is likely to feel the pain in reduced property taxes if plants close and lost water and sewer revenue. The closing of the GM truck plant alone will cost Durham about $1 million in water and sewer revenue per year. As well, should welfare rates go up beyond the increase projected for next year, the Region would have to dip into a rate-stabilization fund to cover the difference so residents don't see big jumps in their property tax bills. In fact, the fund was created for just such a shortfall.

"It arose from a time when welfare caseload was increasing dramatically," said Mr. Clapp.

Regional Chairman Roger Anderson said he has a list of at least 100 projects that could begin shortly should the feds come through with funding. It includes roads, water and sewer and repairs to social housing and the Region's nursing homes.

"We have the projects, there's a whole list of them, $200 million-worth, from $70,000 to $12 million (each)," said Mr. Anderson.

In addition to the recommendations that went with the economic update, Ajax Mayor Steve Parish floated a motion to compile a list of large parcels of unserviced employment lands in Durham and look into servicing them with sewer and water as part of the infrastructure projects. This would mean employers looking to settle in the region could set up shop quickly without having to wait for the lands to be serviced. The mayor said if Durham came out of the economic crisis with 1,000 acres of serviced lands, it would be an asset for the entire region.

"Bad economic times are about hardships, but they're also about opportunities," he said.

Also included in the economic update was the unemployment rate for the Oshawa census metropolitan area, which includes Whitby and Clarington. Traditionally below the national and provincial rates, in October it was above both at 7.2 per cent. That's still lower than the May high of 7.9 per cent. Housing starts in Durham have also fallen sharply to an estimated 3,870 in 2007 from 5,363 in 2006. It's expected to drop to approximately 3,000 in 2008 as unemployment in Oshawa grows.

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