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2009 Budget

2009 Budget. City of Melfort An Overview of the 2009 Budget. Agenda. Introduction 2008 Tax Comparison Presentation of the 2009 Budget Reserves Balancing the Budget 2009 Tax Impact. Introduction. Nurture economic growth Replenish Reserves. 2008 Tax Comparison.

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2009 Budget

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  1. 2009 Budget City of Melfort An Overview of the 2009 Budget

  2. Agenda • Introduction • 2008 Tax Comparison • Presentation of the 2009 Budget • Reserves • Balancing the Budget • 2009 Tax Impact

  3. Introduction • Nurture economic growth • Replenish Reserves

  4. 2008 Tax Comparison • Council annually compares Melfort’s taxation levels with other Saskatchewan communities. • Melfort has drop in ranking from 2007. • Minimal variance between 7th to 9th ranking

  5. Residential Ranking2008

  6. Commercial Ranking2008

  7. Presentation of 2009 Budget

  8. Budget Process • Implemented status quo budgeting • With inflationary pressures, status quo budget left City with a $258,000 deficit • Provincial Government programs affecting Budget: • Municipal Operating Grant, $220,000 increase in revenue • MEEP program, increase road and street repair by $53,000

  9. New spending for 2009 • Additional requests that were approved by Council: • Program manager for the new Multi use facility and increase in the advertising budget of $27,057 • Existing site and building repair of $15,000 • Base tax adjustments for vertical condos of $15,996 • Additional requests - alternate sources of funding: • Increase road and street repair by $53,000 (MEEP) • Airport site repair - $28,300 (2008 Surplus)

  10. General Capital Budget • Updating recreational facilities such as the Northern Lights Palace • Completion of the Spruce Haven Park Washrooms • Road base preparation • Essential transportation equipment repair • Repair and improvement of essential sidewalks - MEEP

  11. Utility Capital Budget • Water meter replacement • Manhole rehabilitation • Waterline swabbing • Fire pump engine replacement • Upgrades to the Northcott Lift Station • Awaiting word on proposal to the Building Canada Fund for a major waterline replacement project • Cost shared with federal and provincial governments • City’s share funded through MEEP, the gas tax program and utility reserves

  12. Special Capital Budget • Highway #6 widening project funded through MFC with subsidy of interest through SIGI • Airport site improvement - 2008 surplus

  13. New Multi-Use Facility • Third and final year of ramp up of mill rate increase to meet internal debt repayment • Require a .40 mill rate increase to meet internal debt repayment • Total increase of 1.74 mills over the three years

  14. Reserves • To fund planned capital programs and equipment purchases with their interest earnings • Significant depletion on reserves • Less reserve funds to earn interest • Low interest rates • Council committed to replenish reserves

  15. Budget Requirements • To meet commitment of funding the multi use facility and additional growth and inflationary pressures on maintenance and repair of infrastructure would require an increase of .67 mill • Council looked at 3 taxation options and the impact on different property classes of tax payers • Council wanted a tax policy that would achieve an equal property tax increase for all property classifications and values

  16. Balancing the Operational Budget • Option 2 • Mill Rate increase of .48 to 15.16 mills • Base tax increase to the inflationary ceiling of $12 • Improved Lot $584 • Vacant Lot $212

  17. 2009 Tax Impact • For a residential property with a taxable assessment of 75,000, this will mean an increase of $40.44 or 2.8% • For commercial property with a taxable assessment of 100,000, this will mean an increase of $84.48 or 3.0%. • Average tax increase of 2.9%

  18. Conclusion • With this budget, Council continues to find ways to facilitate growth: • Highway 6 commercial development • Taking advantage of government incentive programs • Recognize the costs associated with growth: • Operational and infrastructure pressures • Plan to replenish reserves for future development

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