A major investment in Humboldt's roads and sidewalks and a new tax levy to help pay for that infrastructure highlight the city's 2014 budget, adopted by council at a meeting on March 24.
"This budget wasn't an easy process," Humboldt Mayor Malcolm Eaton said in a release. "We asked administration to really streamline operating costs and reviewed where our most critical infrastructure issues were. We're pleased that, in the end, we were able to invest more in our roads and sidewalks, while also attempting to build up a reserve for the future with the new road infrastructure levy."
The planning process for the budget included a complete search for any and all savings that could be realized.
"The last two years we've made a concerted effort to sharpen the pencil," said Steve Brown, the city's director of finance. "Part of my job was to look for every nickel we could find."
Brown said the city had found about $100,000 in savings by pursuing everything from new revenue streams to finding new suppliers. Those savings were found even with a five to 10 per cent raise for city staff after the negotiation of a new contract.
"There has been a significant effort by all departments to ensure we're spending effectively," Brown said.
Overall, the city will spend nearly $2.5 million to repair, improve and expand Humboldt's road and sidewalk system. That represents nearly half of all capital expenses and 30 per cent of overall expenditures.
"We are doing a lot of good catch-up work with these funds," said Peter Bergquist, the city's director of planning and engineering. "We are tackling roads that in some cases are starting to fall apart."
To help cover those costs the city will also be introducing a new road infrastructure levy that will be $25 per $25,000 of taxable property assessment, up to a maximum of $220 per property.
"Lots of communities do this, and council wanted to index it to the size of the property," Brown said.
Bergquist described a plan for some of the city's main roadways that involves replacing water mains and laying base gravel down one year, followed by installation of asphalt the following year.
"It starts with weeding out any issues with the water main and you let the gravel settle before putting down the asphalt," Bergquist said.
Some road projects for this year will include laying asphalt down for three blocks of 5th Avenue and nearly three blocks of 4th Avenue. There is also a tentative proposal for improvements to Highway 5, from the Humboldt Golf Course east to the train tracks, but that is contingent on the city receiving matching funding from the provincial government. Bergquist expects to hear back from the government soon, and if the money doesn't come the city has already budgeted $60,000 to chip seal that part of Highway 5. It would be a temporary fix, but necessary if full repairs aren't possible.
Overall, Bergquist was pleased with the budgetary commitments to the city's roads.
"Humboldt actually has decent roads for its size, even when compared to bigger centres," he said. "We are spending a healthy amount. We're still not spending what we theoretically should but it's all about trying to stay sustainable."
The city reported overall revenues of nearly $15.6 million and posted a small surplus of $61,547 once capital expenditures were factored in. The vast majority of revenues were gleaned from property taxes and fees and charges, while the largest expenditures were capital costs, staff wages and contractor services.
Looking to the future, a major issue will be a planned expansion to the water reservoir building in the north end of the city.
"Everyone takes water for granted until it stops coming out of the tap," Brown said. "We are shooting for outside funding to help with the expansion. Any fees we have to charge would be much lower if that happens."
As previously announced, utility rates will also rise by about eight per cent, but Brown said much of that money will be reinvested in needed infrastructure improvements.
"I hate paying taxes as much as the next guy, but residents will see evidence of those new revenue sources this year," Brown, who will be taking a permanent job in Prince Albert next month, said.
If this year's budget had a theme, it would be the importance of every single dollar.
"It was not an easy budget," Brown said. "Every dime had to be justified."
