FORT FRANCES—Although the 2005 budget process is moving along fairly smoothly compared to last year, the town will have to wait for some important figures before it can be finalized.
Fort Frances CAO Mark McCaig noted during a special committee of the whole meeting Monday night that “the table is set” for the 2005 budget, but the town still must get a better idea of its uncontrollable costs.
For instance, while the town is aware the Northwestern Health Unit is looking for a levy increase of 4.06 percent this coming year, similar levies from the Rainy River District Social Services Board and Rainycrest Home for the Aged aren’t known at this time.
As such, they only can be included in the budget as estimates.
Likewise, the OPP budget won’t be available for a couple weeks, noted Community Services manager George Bell. And treasurer Peggy Dupuis said she’s waiting on the assessment roll.
“We need the roll to give us the total assessment and tell us what we’re looking at in terms of tax dollars,” Dupuis explained yesterday. “It’s very important—we need it to determine our revenues.”
Then there’s Rainycrest’s controversial year-end deficit, of which the town will have to cover 58 percent. In the past, that shortfall has been estimated as anywhere between $230,000-$290,000.
Meanwhile, if a new water and sewer agreement for Couchiching First Nation can’t be struck prior to the end of the year, this loss of revenue also could factor into the town’s budget.
This matter was on the agenda at Monday’s special committee of the whole meeting, but it was discussed in-camera (behind closed doors).
“I fully expect the budget to be passed a few months earlier this year,” said McCaig, adding the beginning of February would be a realistic date at this point in time.
Dupuis said Monday that the town currently is looking at a shortfall of $379,595. This includes budgeted transfers to reserves in the amount of $291,123 and contributions to capital projects in the amount of $99,750.
While the shortfall was reported as closer to $479,595 the previous Monday, that number did not include a $100,000 dividend which has been requested from Fort Frances Network Services.
This shortfall could increase or decrease down the road, depending on factors such as the aforementioned uncontrollable costs as well as whether council decides to put money into reserves and capital projects.
Coun. Struchan Gilson asked whether tax increases may be in the picture this year, adding the previous council tended to avoid raising taxes if at all possible.
“What are we aiming at here? Do we have a committee rule?” asked Coun. Gilson.
Coun. Todd Hamilton noted he felt, personably, that council and town administration should look at the previous year, what capital projects did or didn’t get done, and what needs to be done in the future.
“If it means a small increase to meet those needs, that’s appropriate,” he remarked. “A zero tax increase forever isn’t a good policy to follow.”
Coun. Roy Avis noted any tax increase depends on the assessment roll, and that taxes can’t be raised arbitrarily. But at the same time, the town’s “philosophy has to change,” he said.
“Last year, everything was on the table. User fees, everything,” McCaig told councillors. “I don’t think you’re backed into that corner this year.”
In a separate item at Monday’s special meeting, council agreed to changed a meeting date from Monday, Dec. 6 to Monday, Dec. 13.
The second council meeting of the month then will be held the following Monday (Dec. 20).
(Fort Frances Times)
Fort Frances Times
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