Yorkton Council has passed both its 2011 Operating and Capital Budgets at its regular meeting Monday.The Operating Budget is set at $20,319,000, while the Capital Budget for projects is $13,378,760.
In terms of the Capital Budget $2,299,130 from reserves, $4,833,963 from grants, $4,369,667 from other sources and $1,876,000 to be funded from 2011 taxes.
Director of Finance with the City Lonnie Kaal said the process of creating the 2011 budget began with Council directing administration to prepare a budget with a maximum of a 2.5 per cent tax increase.
Councillor Les Arnelien said Council had "challenged" Administration to keep the increase, "at or near the rate of inflation," and they accomplished that goal. As a result he said, "It is the lowest rate increase the city has experienced in the last 10-years."
Arnelien said having the budget passed this early is also a major accomplishment, adding he believes Yorkton is the first community in the province "to approve its 2011 Budget."
Coun. Ross Fisher said the timing was a positive one. He said by getting "ahead of the budget cycle," it offers the potential to realize better results for tenders based on being ahead of the busy season."I think on balance
this is a good budget," he added.
Mayor James Wilson said the increase is "very minimal", noting that toast and coffee Monday morning was more than $4, while the tax increase is only $2.93 per month for residential properties.
The increase was accomplished based on several factors.
"This has been accomplished even though wages and benefits have increased five per cent, largely because the Province has provided extra funding via the Municipal Operating Grant," detailed material circulated to Council from Kaal.
Kaal said growth in the City also helped the budget meet Council's mandate.
"Yorkton continues to record sustainable growth with new construction increasing tax revenues. Even with the deletions in assessment expected regarding properties damaged by The July 1, 2010 flood, an additional $140,000 is expected from new assessment," stated the material.
At the same time there are additional costs associated with the budget, including four new full-time staff, and the conversion of four additional part-time positions to full-time.
Arnelien said the additional staff is needed to help maintain "customer service."
Coun. Bob Maloney agreed the additional staff was a good idea, since the city is going through a period of growth. He said proper staffing is needed to take advantage of the growth.
However, Coun. Chris Wyatt said he would not support passage of the Operating Budget based on the additional staff being part of the document. He said the staff was something which "stuck in my craw."
For example, the need to have someone revamp the website should be carried out by the City's existing IT personnel, adding marketing "the Mayor should be doing that."
Wyatt said the positions he has issues with might only cost $100,000 annually, "those positions are going to be there for life."
But, both Councillors Richard Okrainec and Larry Pearen were in favour of the staff increases.
Pearen noted, "If we don't listen to our staff people might be tempted to leave."
Interest revenues are also expected to decrease by $100,000 "considering the lower market interest rates and estimated cash flows," said Kaal.
The budget was also aided by decreased payments.
Annual debt payments have decreased $150,000 with the Gallagher Centre internal loan being paid and a further $50,000/annum in savings from the low interest rate financing on the fire hall debt, said Kaal.
The $200,000 in annual savings is allocated to reserves for future capital and maintenance requirements, she added.
Additional debt is not planned for 2011 other than some internal financing for the library renovations and completion of the Water Treatment plant. Principal debt reductions of some $2.4 million will be made city wide.
Kaal said with recent debt pay downs the City is well within its debt limit of $42 million. Current debt sits at near $34, leaving what Kaal termed "wiggle room" of $8 million, should the City need to borrow additional dollars.
Kaal said a major impact of the 2011 will be seen in the City moving toward a self-sufficient landfill. The refuse collection costs will be moved from the property base tax to a fee on the water bill.
"Residents can expect a decrease of $8.33/month or $100/year in the base tax. This will be replaced with a monthly garbage fee of $8.50/month or $102/year on the water bill," detailed Kaal's document.
As for the tax increase, which includes $10 capital works increase to the base tax, will mean an increase of $2.92 per month on residential units, or $35 per year.
On the commercial side, based on $100,000 assessment, the increase amounts to $5.83 per month, or $70 a year, explained Kaal.
The operating budget was passed with only Councillor Chris Wyatt opposed, while all of Council supported passage of the capital budget.
