Council receives budget draft

The new Fort Frances town council is getting down to business and starting its involvement in the 2007 budget process.
At its first regular meeting Monday night, council approved a report from CAO Mark McCaig which outlined preliminary operating and capital forecasts for 2007.
While it shows an operating shortfall of $1,686,247, McCaig stressed the “preliminary” nature of the numbers in the report.
“With the new council, we threw everything in there,” said McCaig. “It kind of lends itself to the exercise of determining priority spending for the municipality.
“We have a lot of work to do,” he added. “We have a brand new council and this kind of lends itself to the whole aspect of everybody getting to know the organization intimately.
“We do have a significant shortfall on the operating side. We’ve had it before.
“We could have had it last year, but we took significant measures before we presented the budget to council,” explained McCaig.
“We didn’t think that was prudent at this time because we thought council should know the status of all of our exercises and what we’re doing with regard to capital and sewer and water.
“We’re going to get going on this.”
In his report, McCaig noted council should keep in mind several points when looking at the preliminary budget, including:
•the fact the town hadn’t received the assessment roll for 2007, and that the amounts for taxation were based on the 2006 actuals;
•over the past year, there have been several appealed assessments, resulting in reduced tax revenue (there also is a significant appeal hearing involving Abitibi to be decided next spring which could further affect the taxation revenue);
•the draft budget includes a two percent increase to user fees in the Community Services division;
•it does not include a rate increase to sewer and water (at this point, it is proposed any projected shortfall will be addressed through reserves);
•while uncontrollable costs related to policing, Rainycrest, and the Northwestern Health Unit have been confirmed, costs from the local DSSAB have not;
•the draft operational budget does not reflect long-term debt or interest payments; and
•some of the items in the preliminary budget included by the previous council include the hiring of crossing guards and the recruitment of an economic development officer.
The 2007 budget process began back in September with the adoption of a timetable and a public meeting.
Administration, management, and executive committees met throughout the fall to review division budgets, and administration drafted the preliminary budget.
The budget process will continue in the new year, with mayor and council attending executive committee meetings Jan. 2-5 to examine the budget on a divisional basis.
There also will be a special committee of the whole meeting for budget purposes on Jan. 15.
According to the timetable, the 2007 municipal budget should come before council for ratification at its Feb. 26 meeting.
A public meeting then is slated for March 12, at which time council is expected to explain the budget and subsequently pass it as a bylaw at its March 26 meeting.