 |
|
|
|
|
  
|
City proposes 2.8 per cent tax hike Citizens face eighth straight year
of increasesSimon Whitehouse Northern News Services Published Wednesday, November 16, 2011
The city is proposing a property tax increase of 2.87 per cent lower than this year's increase of 3.99 per cent. But the draft budget also calls for a $5 hike to the solid waste levy included on city water bills.
If approved, the $17 monthly levy for single family unit homes would translate into a $60-per-year increase on water bills. Carl Bird, director of corporate services, gave an overview of the draft budget to city council at the municipal services committee meeting Monday. The cost to a residential taxpayer will be $24-per-$100,000 of property value, or a $47 increase for a home at the average assessment level ($210,000). Administration is recommending council pass a budget that calls for expenditures of $70.7 million - about the same as was spent in 2010 and about $6 million less than what the city is forecasting to have spent in 2011 so far. Of the $60.6 million the city expects in revenue for 2012, about $23.2 million will come from property taxes, $23.6 from user fees, and $13.9 million from government transfers and investment income. "Our re Councillor calls 2012 draft a 'barebones" budget. venues have been fairly steady and have not really increased over time," Bird said. As for the proposed $5 hike on the solid waste levy, Bird told council that the increase is needed to cover a deficit in the city's Solid Waste Management Fund. "We are projecting a deficit of $349,000 at the end of 2011," said Bird. "To eliminate that over two years, we're recommending increases in some of the fees."Bird said the city will be short $74.1 million by 2016 to pay for infrastructure needs. The city plans on spending $25.4 million, which includes $8.8 million carried over from this year, on capital projects next year, with the biggest cost items being $5.8 million toward construction of a water treatment plant; $3.4 million to replace water and sewer lines; $700,000 for road rehabilitation, and $2.2 million for fleet vehicle and IT replacements. City councillor Cory Vanthuyne said it is still early in his assessment but he took notice of the fleet and IT replacement costs. "I've always looked at IT as an investment and most certainly an investment that is supposed to make our jobs easier and information more accessible," he said. However, it seems year after year the city wants to spend more, he said. It would be interesting, he said, to see what kind of benefit is being gained from these types of investments. Coun. Mark Heyck said he hasn't gone through the document entirely. However, since the city is using a new Municipal Price Index to measure the basket of goods purchased, "it is quite evident inflationary pressures account for the vast majority of expenditures." He said no numbers stood out for him just yet, but that compared to past budgets, 2012 looks to be a pretty "barebones budget. It will be interesting to see what council does with it." Coun. Lydia Bardak said it is still early but agreed with Heyck's "bare bones" assessment and said a lot of the major costs in the budget, such as staffing, electricity and fuel, are items that are out of the control of council even though they represent at least one-third of expenditures. When considering the infrastructure gap and what she called the city's very good record over the years of paying down debt, it does not leave a lot of money left over, she said. "The 2.87 increase is pretty bare bones so we really have to scrutinize where we can do better and where we can make improvements," she said. The city is also seeking borrowing authority to complete the planned water treatment plant. Council is expected to pass the budget by Dec. 12.
|
