North Battleford city council has had three marathon sessions to review the proposed 2016 budget without any significant changes made to the recommendations of administration.
If Monday’s upcoming meeting holds the course, city residents could see a property tax increase of up to four per cent. On an average assessment of $111,580, that equates to $59 for the year.
Nor should residents be surprised if a proposed 4.6 per cent net increase in base water and sewer rates is approved. On an average assessment that will mean an additional $44 in 2016.
In addition, the UPAR — underground pipes and roads — program, which was introduced in last year's budget, will be expanded. The levy for 2015 was $3 per frontage foot, raising $965,092, combined with the utilities department’s annual contribution toward underground water infrastructure renewal of $1.2 million. This year, an increase of $1.93 per frontage foot, or $96.50 per annum on an average assessment, is currently being considered, as well as an increase of the average utility contribution of $53 on an average assessment.
Projected 2016 utilities revenue includes a 36.1 per cent drop in all utility base rates to allow for the UPAR funds that were currently embedded in the base rates to be removed and separately billed and accounted for in 2016 and future years.
City Manager Jim Puffalt says the first year of UPAR saw a large portion of 100th Street completed in 2015. For greater visibility of how UPAR is funded, he says the funds have been accounted for separately and broken out of the water and sewer rates to provide even greater visibility. The 2016 budget proposes an increase to the UPAR program to continue working towards the goal of total replacement of all undergrounds within a reasonable time period.
"As expected, the highly anticipated tri-partite infrastructure Canada Builds Program did not provide any assistance to North Battleford and we are awaiting details of what the new federal government will propose with regards to infrastructure replacement," says Puffalt.
"This budget proposes that, while we wait for details, we expand the program somewhat to continue to make progress towards the stated goal and we again have to fix our problems and address this issue using whatever external funding is available."
UPAR plans for this year include 95th Street from Territorial to 19th Avenue, 96th Street from 13th to 14th Avenue, 97th Street from 12th to 13th Avenue, 98th Street from 13th to 14th Avenue, 102nd Street from 16th to 17th Avenue, 105th Street from 11th to 12th Avenue, 106th Street from 10th to 11th Avenue, 108th Street from 10th to 11th Avenue, Douglas to 110th and St. Laurent, plus some underground camera work. The total bill is projected to be $3.5 million.
Whether or not city councillors agree to the full increase in and scope of the UPAR program remains to be seen. Clarification on a few items has been requested for Monday’s meeting, and at least one councillor has expressed difficulty in asking taxpayers to accept a 65 per cent increase in the UPAR levy.
But not all the discussion was on UPAR. Budget time is also about debt management.
In order to carry out existing capital investments in 2016 and save reserves for purchases planned in future years, says Finance Director David Gillam, the City will be re-borrowing the amount of debt principal scheduled for repayment in 2016 in the approximate amount of $2.8 million.
A good portion of the budget deliberation was a review by department heads of 2015’s accomplishment and a list of hoped-for accomplishments in 2016.
One key savings from 2015 is a reduction of $100,000 in material purchases with a central purchasing program in place.
In reviewing the capital plan, councillors see they have some decisions ahead in key areas that could become major money pits, such as whether to continue to spend hundreds of thousands on flushing out bio-fouled wells or investigate an opportunity to tap into surface water from the river.
Mayor Ian Hamilton said council and administration will come back Monday for “a final kick” at approving the 2016 budget.
