The town has begun the process for its 2014 budget with senior administration staff making no-frills presentations to council that could – if ultimately accepted - result in a zero per cent tax increase for citizens next year.
But even under that best-case scenario residents will still see a hike on their tax bills due to ongoing assessment growth.
“I haven't seen assessments going down. It will stay the same every once in a while but in the last three to five years it has gone up,” said Heather Whymark, the town's director of corporate services, who noted council last year went with a one per cent tax increase over and above the assessment growth. “We work hard to bring in a zero budget. We look out for the taxpayers and try to give them the growth that is good for them and what will benefit them as a whole.
“It is just maintenance, just to keep everything moving. We haven't put anything big and elaborate in this budget at all,” she added.
During the opening budget process meeting on Nov. 19, council heard presentations from Whymark, Craig Teal, director of planning and operations, and FCSS manager Tammy Oliver-McCurdie.
Teal outlined several infrastructure expenditures the town was committed to, including the third and final phase of the Downtown Revitalization Project that will cost $2.7 million, and a $950,000 expenditure for new infrastructure in the lanes between 44 Street and 45 Street, and 45 Street and 46 Street. Council was also reminded that it has also committed itself to spending $3.75 million to start construction on the new high-end residential Napoleon Meadows development, an expense that will be recouped by the sale of lots that is expected to bring in about $5.1 million.
“That (Napoleon Meadows) isn't one they are looking at the tax base to recoup because it is sitting in reserves and it will go back into reserves. That is not the type of project we would look to do a tax increase for,” said Whymark.
She added that it is early in the budget process and that council ultimately has the option of cutting proposed funding for any project it doesn't think is appropriate or adding another and finding the necessary funding for it, including through increased tax revenues.
“It is up to council to decide what their priorities are and where they want to go and whether they see the same future as we do or whether they are going to make some changes,” said Whymark, who told council that a one per cent tax hike would bring in an additional $67,000 in revenues while a two per cent increase would mean an additional $135,403 and three per cent would bring in an extra $203,105.
Mayor Brian Spiller termed the current presentations by administration as “just information”, noting council still has deliberations ahead to debate the merits of what has been proposed.
“They are not proposing that (zero per cent budget increase),” insisted Spiller. “They are bringing the budget forward as that, as a starting point. They are not proposing a zero per cent tax rate. There is a difference there.”
However, Spiller added it would be “awesome” if council could agree to a zero tax increase and still deliver the services the community needs. However, he cautioned “economics and logistics” dictate what council can ultimately do; noting for example that the replacement of core service infrastructure is a “constant battle.”
“If you don't keep putting three to four million every year into your infrastructure in a town our size all of a sudden in five or six years you need $25 million in one year, and that is a lot harder to find than three or four million in one year,” said Spiller.
On Nov. 25, council was scheduled to hear presentations from senior officials from other departments, including budget proposals for parks and recreations and library services.
