Yorkton Council took its first public look at the City's 2013 Operating Budget at its Committee-of-the-Whole meeting Monday.
The budget shows net expenditures of $18,008,825.
Lonnie Kaal, Director of Finance with the City said Council had directed Administration to prepare the operating budget with a 2.5 per cent tax increase.
The senior management team has worked diligently to prepare the operating budget within the guidelines (2.5 per cent capital plus 2.5 per cent operating equals five per cent total tax increase), she said.
"A 2.5 per cent tax increase provides $381,000 and all of this is going to maintain infrastructure," said Kaal, adding the operating budget presented includes the following; road maintenance increase of $95,000, inspect, camera and clean storm pipe of $230,000, and replace catch basins of $60,000, for a total of $385.000.
"The total of the additional maintenance equates to a 2.5 per cent tax increase excluding cost increases for all operations. Fortunately with the deletion of tax discounts and other revenue, only $190,000 needs to be funded in order to realize the targeted tax increase."
In terms of added revenue the budget calls for $327,630 in additional tax revenue, crown surcharge revenue and municipal operating grants.
Kaal said the storm network is costing the City additional dollars, with some $290,000 in the budget.
"The $230,000 will be used to inspect and clean roots and sediment out of known problem storm pipe. Given the vastness of the problem it will take $1,600,000 to clean and inspect the entire drainage network. This amount will need to be budgeted for an ongoing basis. The $60,000 will replace the known problem catch basins over five years. Again, this will need to continue to be part of ongoing operating budgets to fix and maintain existing catch basins," detailed a report circulated to the regular meeting of Council.
Kaal added the capital budget included an increase of $465,000 to be allocated towards paying for the $8,500,000 drainage plans.
"In order to keep the tax increase within 2.5 per cent we recommend decreasing the internal payment by $190,000. By so doing, the ponds would be paid in 2018 (six years) as $940,000 will go towards the internal loan in years where there is no capital instead of the planned $1,130,000. The entire drainage plan will be brought back to Council to determine priorities once the engineering work is completed," detailed the report.
Additional highlights of the 2013 Operating Budget include;
*$78,000 - Planning/Engineering/Building Services - increase one staff and a half year contract for Engineering Projects and a Geographical Information Systems Database position.
*$95,000 - Public Works - Increase Road Maintenance.
Councillor Ross Fisher said the increases are targeted ones.
"The majority of increases we see are going to infrastructure," he said, adding Council is aware there is "an infrastructure deficit in a number of ways." The budget increases go "to bridge the gap," he said.
Mayor Bob Maloney said addressing infrastructure is important.
"It's putting our dollars in places we need too," he said.
Coun. Chris Wyatt was not so impressed with the increase, noting he would not support the budget. He said rather than the suggested increase to taxpayers he would have preferred to see "some savings be made within current Administration."
Wyatt pointed to the new staff positions in the 2013 budget and added "every budget for the last four we've been adding, adding, adding." He called on Administration to prepare a comparative study of staff in Yorkton, with similar-sized cities such as Swift Current and Battlefords.
"I just think it's time to find some savings within before going to the taxpayers."
Coun. James Wilson said while the increase might be five per cent overall, not every home will face the exact same increase.
"Tax policy will determine how that five per cent is distributed," he said.
An average home in Yorkton is currently assessed at $100,000 and a five per cent tax increase which equates to $62.00/year.
Kaal said it "will not mean a $62 increase to every household."
The budget was tabled until the next meeting of Council allowing for public input.
