North Battleford city council has adopted its 2016 budget, but it is a much-more scaled back increase than what was originally proposed.
The utility rate increase (base and consumption rates) remains at 4.6 per cent. But instead of a four per cent property tax increase, council found some savings to bring that number down to a 2.5 per cent increase.
The savings were found from the operating budget. Removed were some salaries for city positions that won’t be filled until later in the year, the reduction of the summer string crews from four to two, and also by leasing some equipment instead of purchasing those items — a grader and a street sweeper — in 2020.
That saved about $205,000 from the budget and reduced the increase down to 2.5 per cent.
Also coming down is the proposed UPAR increase, the tax dedicated to underground pipes and roads. Administration had sought an increase of $1.93 per foot frontage for surface work, up from $3.
But council balked at that idea. The discussion at council that followed centred around how much lower the increase should be or even if there should be one at all.
Mayor Ian Hamilton proposed a $1 increase, something Councillor Ray Fox also supported.
Councillors Greg Lightfoot proposed a lower increase to 60 cents per foot frontage, which Councillor Don Buglas supported.
But Councillors Kelli Hawtin, Ryan Bater and Cathy Richardson did not support any UPAR surface increase.
Hawtin was vocal in expressing displeasure at the size of the tax increases proposed by administration, which for the average resident would have amounted to $254.
“People are coming into some tough economic times,” said Hawtin, “and I’m concerned that that’s going to be taxing too much for our residents.”
Lightfoot shared many of Hawtin’s concerns in making his proposal for a 20 per cent UPAR increase, which amounted to 60 cents.
“It would still give us an overall $3 million or close to $3 million in funds put aside, dedicated directly to UPAR,” said Lightfoot.
While he also supported paring down the proposed UPAR increase, Hamilton made clear he remained committed to expanding UPAR.
Not changed is the proposed UPAR on utilities for underground work, which comes to $53 for the average resident in the city with five-eighths inch metering.
Council put the various budget proposals to a vote. The resolution to adopt the 2016 budget with a $1 UPAR increase mustered “yes” votes from Hamilton and Fox only, and was defeated.
A second resolution was then put to a vote to adopt the 2016 budget, this time with the 60-cent UPAR increase.
It passed by a 4-3 vote, with Lightfoot and Buglas joining Hamilton and Fox in favour. Richardson, Bater and Hawtin voted against.
What this ultimately means for the average household in North Battleford is an increase of $164 per year. The 60-cent UPAR increase would amount to a $30 increase on average.
The 2016 budget is now adopted with the amendments. The mill rate bylaws will now need to be prepared and passed and that will happen in the new year.
“They will come as we get more information, especially from the school divisions as to when they [the Ministry of Education] set their rates,” said Hamilton to reporters.
