No tax increase in operating budget

The 2012 Operating Budget for the City was presented, and passed at the regular meeting of City Council Monday.

"The budget before you doesn't have a tax increase associated with it," Lonnie Kaal, Director of Finance with the City told Council.

In terms of budget highlights, Kaal explained Council had directed administration to prepare the operating budget with a zero tax increase. This has been accomplished largely because of extra funding via the Municipal Operating Grant and growth in assessment. She said there is a $735,800 increase in revenues from growth in tax revenue, crown surcharge revenue and municipal operating grants.

The budget does include some added expenditures including:

$149,250 - Increase staff 2.23 full time equivalents. People resources allocated to Public Works and Community Development, Parks & Recreation.

$70,000 - One time expenditures include 2012 election costs $20,000 and the purchase of fire department radios $50,000.

$25,000 - Allocation to reserves for Deer Park fleet equipment.

$25,000 - Increase in economic development promotions.

$69,600 - Additional financial resources to maintain new parks and

extra funds for horticulture to allow for the required tree pruning.

In addition Kaal noted in a report to Council prior to 2011 very little funds were set aside for future capital projects. $625,000 will be transferred to reserves in the 2012 budget. By placing funds in reserves, future capital projects have some savings set aside for expenditures.

In terms of capital, projects were $1,876,000 in 2011 and the same amount of funds will be available for capital in 2012. The capital budget will be presented to Council in November.

"We're not stealing from the capital budget to balance the operating budget," said Kaal.

Councillor Chris Wyatt, who would end up the lone vote against the motion to accept the budget, questioned adding new "middle management" staff, suggesting if staff was needed they should be "boots on the ground."

Even at that Wyatt said he questioned additions, noting when he was first elected to Council just more than a decade ago the City had about 100 staff, and now it's 140.

Coun. Bob Maloney said he "understood Councillor Wyatt's concern," but added at the City level more business than ever is being undertaken. As the City grows there is a need for more services, and for the staff to provide them.

While the City's Operating Budget will not require a tax increase, Yorkton residents will face increases in two related areas.

"The landfill and refuse collection budgets continue to be self sufficient but require a 2.5 per cent increase in revenue. Given that garbage fees are currently $8.50/month this would equate to an increase of $0.20/month = $8.70/month. These rates will be established by bylaw," detailed the report to Council.

"The Waterworks Utility expenditures have increased 2.5 per cent which will be offset by increased revenues. A bylaw representing a 2.5 per cent water/sewer rate increase will be forthcoming. The revenue from Industrial Water/Sewer sales has been dedicated to reserves to handle infrastructure required when expanding distribution systems."

While Wyatt would be opposed, the rest of Council was supportive.

"I like the budget," offered Coun. Richard Okrainec, noting Administration hit the target of a zero per cent increase.

Coun. Les Arnelien said a lot was accomplished in the city in 2011, and that helped achieve the zero per cent increase.

"It's been a good year. It's been a big year for Yorkton," echoed Coun. Ross Fisher.