Town’s 2005 budget deficit drops again

The town’s projected deficit for the 2005 budget has decreased by more than $100,000 because its share of the Rainycrest levy dipped eight percent.
At a special committee of the whole meeting yesterday, treasurer Peggy Dupuis said the town had budgeted $785,924 to cover its share of the Rainycrest levy this year.
This was based on the levy paid last year.
But word last week that the Rainycrest board of management had passed its budget incorporating changes to the way the levy is divided among district municipalities means the town, in fact, only will have to pay Rainycrest $606,278.
This means the town’s projected deficit dropped from $379,646 to $200,353.
Coun. Todd Hamilton noted people should know the current deficit is the result of a conscious decision to put money aside for capital spending.
“In prior years, council had taken a break from contributing to capital,” he said this morning. “For the long-term health of the town, capital accounts need to be maintained.”
Coun. Hamilton stressed money set aside now for capital projects can be used in the future for road repairs or any other projects that inevitably come up over time.
“If we contributed nothing to capital, we’d have a balanced budget right now,” he remarked.
But how the town will pay for this deficit remains to be seen, including what, if any, tax increase for property owners.
“We’re not really at the tax increase contemplation stage,” Fort Frances CAO Mark McCaig noted during yesterday’s meeting when the subject was brought up.
While Dupuis asked council for input on setting tax thresholds for this budget, McCaig pointed out council should get more information first.
In the meantime, Dupuis was directed to come up with tax threshold scenarios for the Administration and Finance executive committee to review, and then recommend to council.
While the 2005 budget process is nearing completion, the town still has to wait for a finalized budget from the District Social Services Administration Board in order to know what that levy will be, Mayor Dan Onichuk said yesterday.
While DSSAB had done a preliminary version of its 2005 budget, the mayor added its board of directors directed management “to go back and trim considerably.”
Coun. Tannis Drysdale noted DSSAB has to have its budget finalized by March 31.
McCaig said he’d like to see the town’s budget finalized by the end of the month.
Community Services manager George Bell echoed this, adding he wants to see the revised fee schedule accompanying the budget in place as soon as possible, specifically so that customers booking slips at the Sorting Gap Marina this summer would be paying the updated rates.