Duane Hicks
Not happy yet with the bottom line of the 2013 budget, town council will take a harder look at reducing services and increasing user fees.
The 2013 budget currently shows a deficit of about $388,000.
Additionally, council believes Resolute Forest Products will appeal the assessment of the mill here in the future, looking for a further reduction in taxes for 2013 or in years ahead.
As such, it wants the town to have money set aside to offset future financial impacts.
Coun. Ken Perry noted the town isn’t putting any money in reserves in this year’s budget, and is expecting Resolute’s assessment for the 2013 tax year could drop 25 percent.
If this continues further down the road, council each year will have to look for money to cover losses.
“We’re leaving a hell of a legacy for the people coming after us to run this town, and they’re going to be a couple million dollars short,” warned Coun. Perry, adding he doesn’t want to see his grandchildren still trying to pay off Resolute 20 years from now.
Mayor Roy Avis said user fees, including bag tags and a surcharge for non-residents using the airport for medical flights, should be reviewed, as well as services such as the local museum and library.
Providing food for thought, he noted that perhaps the museum could operate nine months of the year instead of year-round.
Or perhaps the library, which has a budget balanced at the same level as last year, could operate with 10 percent less?
“We have to try and look at everything we can,” the mayor stressed.
Coun. Paul Ryan said each service should be looked at on its own to make sure ones that are being cut already don’t get hit again.
“This year, the town has never faced anything like this before and I think the status quo just isn’t good enough,” he remarked.
“We’re going to have to make some cuts.”
But Coun. Andrew Hallikas said he doesn’t want to be too hasty.
“We’re into a speculative area right now,” he reasoned. “We don’t know what’s going to happen in 2013, we’re speculating that something is going to happen.
“This situation that we’re in, we’re not in it alone,” he added. “There’s a lot of other communities in the same situation.
“Things may change before next year.
“I am little leery of going into service cuts to the tune of $300,000-400,000 because I’ve seen what’s been cut already,” Coun. Hallikas said.
“Service cuts of that nature are going to be pretty deleterious to some services,” he warned.
“It doesn’t hurt to look at things, but let’s be a little cautious before we start rushing into major service cuts of that nature.”
Council agreed to hold a special meeting to “get down to brass tacks,” as the mayor put it.
