The Town of Penhold has taken another step in its budget process by approving an interim 2013 operations and maintenance budget.
The interim budget is equal to 50 per cent of the operations and maintenance operating budget revenue that totals $4,545,636.
“Until Penhold council receives the final assessment numbers and the provincial government education levy is released in May, we will likely not know any final numbers for a potential tax increase related to our 2014 budget,” said Linda Hollman, the town's chief financial officer.
The approved budget will allow the Town of Penhold to function day to day until the budget is formally approved. No capital expenditures will be allowed, with the exception of emergency items required by town departments.
The 2014 budget contains potentially big-ticket items, including the Highway 42 intersection, which could be as large as a $1,200,000 expense for a more complex design meant for a residential area instead of a more simple entrance/exit structure. The town also received $400,000 from Alberta Municipal Affairs as a Municipal Sustainability Initiative (MSI) grant for the project, which may or may not cover the total cost of the project.
Two other grants totalling $268,000 were received for a tandem truck and a multiplex training room.
Hollman noted the MSI grant was going to be reduced by 40 per cent in 2014 to $90,395. That is down from $150,568 in 2013. The MSI will go down 50 per cent in 2015. It will be completely eliminated in 2016.
“By 2016, the elimination of the MSI will be a huge factor in how we fund our services,” added Hollman.
Fee increases were discussed for the Memorial Hall, and water and sewer services to turn them into revenue neutral, cost recovery services. No final decisions have yet been made.
The 2014 budget includes more than $9,350,000 in revenue, with a projected shortfall of at least $900,000. Final tax numbers will not be available until early January.
For more on the budget visit the town's website at www.townofpenhold.ca.
