Duane Hicks
While town council is not done yet with the 2011 budget, it has been making cuts and other decisions to try and minimize a potential tax hike, which currently sitsat 3.9 percent for the residential class.
For example, council agreed at its budget meeting Monday to hold the Fort Frances Public Library Technology Centre’s operating budget to the same amount as last year.
The 2011 operating forecast for the library is $472,840—about $20,000 more than last year’s operating forecast of $453,080 (the actual 2010 operating budget for the library ended up being $454,852.38).
Coun. Rick Wiedenhoeft noted that before the new facility was built, the library board was adamant that its operating budget would not increase for three years.
But clearly some costs are going up, with hardware/software maintenance, for instance, having increased from $1,200 to $14,000 between the two years.
While indicating the library does have a reserve fund it possibly could use, Fort Frances CAO Mark McCaig warned the reserve fund is for capital works, not operating costs, and to cross that line could start a “death spiral.”
“My feeling is we should leave the library budget at the amount it was in the budget for last year, and put it in the hands of administration there,” noted Coun. Sharon Tibbs, adding that if they still end up with a shortfall, they can come forth and explain why to council.
Coun. Andrew Hallikas said the library board had said it could maintain a zero percent budget increase, but added the library staff is running a new building in its first year and maybe there were unexpected costs getting started.
“The only item that we didn’t expect . . . was the huge increase in software maintenance,” explained Community Services manager George Bell, noting it will be an ongoing item in the operational budget.
Couns. Tibbs, Wiedenhoeft, and Ken Perry, along with Mayor Roy Avis, voted for the freeze while Coun. Hallikas voted against it.
In another example, council will hold off on hiring another museum assistant until next year.
During its budget meeting Monday, council agreed to give new museum curator Sherry George, who formerly was the assistant, time to settle into the new role before assessing whether or not an assistant needs to be hired.
“I thought that when we hired a curator, we were going to be taking a look at that position . . . let’s say that’s not going in the budget this year,” said Mayor Avis.
“I’d like to see [the museum assistant position] disappear, or give us some substantial reason why we should have it,” he remarked.
“I’d like to see it off the table for this year,” he later added.
Coun. Perry agreed, saying he’d like to see how the new curator does for a while without an assistant and get her input.
Bell said George should have some time to settle in before being asked for her recommendation regarding more staff.
“That way, we could hire the student for the summer, and in the fall take a look at it, or even in 2012,” he remarked.
Council agreed to putting off the matter until the 2012 budget process.
“I would feel more comfortable if the new curator had a chance to weigh in,” said Coun. Hallikas.
“I don’t like the idea of council basically doing staffing in absentia by cutting,” he stressed. “My preference would be to hear from the new curator and hear her weigh in on the necessity or not.”
Coun. Tibbs noted a possible alternative to having to hire an assistant would be to have the curator use the days when the museum isn’t open to work on displays.
“I really believe that it’s better to reduce size and then build back up if it’s necessary than it is to hire that other person now and reduce the size after,” reasoned Mayor Avis.
“It’s not like we’re going to axe all of the essential programs or anything of that nature.
“I am just thinking we have to be very prudent . . . the best way is to reduce the size as we have and start to build up from there.”
The current 3.9 percent tax hike equals a net tax dollar increase of $20.90 per $100,000 of assessment (although this increase can vary between properties if that property’s assessment has gone up or down).
However, this levy increase is not final as council will continue to work at the budget at its next meeting April 4 at 4 p.m. downstairs at the Civic Centre.
At Monday’s budget meeting, council has another go at its capital budget, cutting out the following expenditures:
•a rescue unit ($88,000);
•specialized rescue equipment ($15,300);
•a sand/salt storage shed ($528,278); and
•the reconstruction of Scott Street from Reid Avenue to Colonization Road East ($1.9 million).
These items could come back later this year as non-budgeted capital expenditures, however, if certain funding comes through for each of them.
As well, council was updated on its operating budget, which has been reduced by $65,977 (from $21,445,371 to $2.379,340) since the March 7 budget meeting.
This is as a result of:
•a reduction of $20,770 due to realignment of staff at the Memorial Sports Centre;
•a reduction of $16,500 in revenue due to the anticipated reduction of community fire protection contracts;
•a reduction in fire department administration in the amount of $111,865 to reflect the current complement of employees (i.e., seven firefighters and one fire chief, as opposed to eight firefighters and one chief); and
•an increase of $50,158 in the estimated OPP contract for policing.
The operating budget is expected to be further adjusted by the April 4 meeting, including $20,000 to do energy audits that will enable the town to apply for grants for retrofits.
In related news, council did not receive a presentation from Solar Logix Inc. regarding solar panels at Monday’s meeting due to a last-minute cancellation.
That presentation now will take place in coming weeks.
