The Town of Orangeville's spending continues to be within the framework of the 2008 municipal budget, but councillor Sylvia Bradley, chairperson of the budget committee, sees a number of challenges going into 2009.

Treasurer Wayne Church presented council with an operating budget update last week which covered the first three quarters of the fiscal year. The update reveals the town has spent $12.74 million, or 69.7 per cent of the $17.9 million budget.

If the spending trends continue in the final quarter, the town would come away with an end-of-year surplus. Ms. Bradley is not optimistic that will happen, however, and predicts that a balanced budget at year's end will be more likely.

"Overall, I'm very pleased with the results so far," she said, but cautioned that the town may face circumstances that would eat up a potential surplus. One example is snow removal.

If this winter turns out to be as harsh as last year, the town will have to spend more money on materials and labour. To cope with the severe winter in 2007-08, the town needed to spend $156,000 on salt, sand and calcium chloride mix.

Any snow removal between now and the new year will be listed as a 2008 expenditure. A repeat the severe winter weather last November and December could mean thousands of dollars diverted to snow removal.

As far as 2009 is concerned, Ms. Bradley says there will be a number of challenges, not the least of which is rectifying the mould problem at the Alder Street Recreation Complex. The parks and recreation department has warned that the cost of the cleanup could reach as high as $500,000.

While the town is considering seeking financial compensation from the builder, Ms. Bradley cautions that any such settlement could take years to complete. "In the meantime," she says, "we still have to pay the bills."

Meanwhile, contract talks between the town and the Orangeville Police Service are winding down to an agreement and any pay increases will have to be included in the 2009 budget.

"We're going to have to deal with that (police cost) increase," said Ms. Bradley, "and it will be retroactive to 2005."

As for preparation of the 2009 budget, which begins in earnest toward the end of this month, Ms. Bradley summarizes the process in one sentence.

"It's going to be a challenge."