Duane Hicks
With council set to begin the in-depth budget process on Monday, it’s starting off with a small surplus in the town’s operating budget.
Treasurer Laurie Witherspoon presented the preliminary 2015 operating budget to council at its regular meeting this past Monday night, which indicated a surplus of $1,877 due, in part, to a substantial reduction in the town’s policing costs under the new OPP billing model.
This is a far better starting position than last January, when the preliminary 2014 operating budget indicated a $360,075 shortfall.
“We have a tremendous amount of work to do—maybe not as tremendous as years past when take a look at what the bottom line is on the summary,” noted Fort Frances CAO Mark McCaig, referring to the surplus.
He said administration will look at its projections again in anticipation of this Monday’s budget meeting, and see if they understated or overstated anything in the preliminary budget and make adjustments accordingly.
McCaig added he would not be surprised if the budget is finalized by early March.
In her report, Witherspoon said the surplus amount does not yet include consideration for the Rainy River District Social Services Administration Board’s levy increase or decrease, or any new capital long-term debt.
Also not included is the fire department’s post-retirement benefit unfunded liability of $234,921 as of the end of 2014, any tangible capital asset amortization, or any surplus or deficit for the 2014 year-end.
Coun. Ken Perry said the town should have a better idea of how DSSAB’s 2015 budget is shaping up by month’s end.
In other areas, the operating budget has gone both up and down compared to last year.
The draft version shows:
•a revenue decrease of $187,052 due to a number of factors, including fewer Ontario Municipal Partnership Fund dollars;
•a net increase of $24,055 for the Administration and Finance division;
•a net decrease of $245,809 for emergency services;
•a net decrease of $4,173 for the Community Services division;
•a net increase of $39,699 for the Operations and Facilities division; and
•a net decrease of $2,701 for the Planning and Development division.
The preliminary capital budget, meanwhile, sits at $17,684,843.
At this point, the long-term debt amount of $2,226,921 is solely for roadway projects and a Public Works sand/salt shed, Witherspoon noted.
An estimated $7 million of the capital budget will be paid for through a combination of the federal gas tax and various town reserve funds.
Another $6.7 million will be funded by federal and provincial grants.
Water and sewer rates will fund $1.7 million worth of water and sewer projects.
The water and sewer balanced budgets are incorporated in the preliminary budgets, but do not have a direct impact on the general operating budget.
Water and sewer rates for 2015 will be decided over the next two months.
The water and sewer budgets are stand-alone utilities which are supported by their own rates.
In related news, council on Monday night passed a bylaw to institute an interim tax levy.
As in previous years, the interim levy is equal to about half of the total amount of taxes property owners paid in 2014.
Interim tax bills will be mailed out shortly.
Fifty percent of the levy will be due and payable by Feb. 27, with the balance due by March 31.
Council also passed a bylaw to authorize temporary borrowing in the amount of $4 million to meet 2015 expenditures until revenues are collected.
