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Council approves its 2010 interim budget
Mac Olsen
for South Peace News
High Prairie taxpayers are facing a minimum hike in taxes in 2010, if the temporary budget passed Dec. 22, 2009 is any guide.
High Prairie town council approved a $9.2 million interim budget for 2010. The budget is predicting $6.3 million for revenue and $2.9 million to be raised from taxpayers. It’s very close to the amount collected in 2009.
Mayor Rick Dumont says the interim budget is “pretty well” balanced. However, Councillor Jeff Burgar is concerned about the lack of money for capital or contributions to operations. Capital is work like repairing sidewalks or replacing vehicles.
“There’s hardly anything set aside for capital or contributions to operations, or anything,” says Burgar. “We’re not even covering depreciation.”
Burgar takes issue with the water system, with revenue predicted to be $1,161,059.27 and expenses of $1,138,981.83, leaving a surplus of $22,077.89. It isn’t enough, he says.
But Dumont says the Town of High Prairie isn’t allowed to put capital money aside for the water system.
“We increased it enough so we weren’t losing money on it,” says Dumont. “Now, at least, we’re on the black side of things.”
“I thought we were at least, on the black side, a little bit more,” says Burgar. “I can’t see how we can run a $5 million system and not be allowed to at least cover the replacement costs. That just doesn’t make sense at all.”
“It’s very unfortunate we can’t put capital into the cost of our water, Jeff,” says Dumont.
“We’re going to put ourselves out of business at this rate,” says Burgar.
New treasurer Terri Wiebe believes a monthly flat fee for infrastructure replacement can be charged – she still has to confirm it – but says the operations must be revenue neutral, showing neither a profit nor a loss.
For 2010, the public works department is predicted to receive just over $1 million and the fire department, $224,650. Other departments include the rec board, $561,330; parks and recreation, $351,000; the museum, $75,000; and the library, $349,000.
Items not included in the budget are the Municipal Sustainability Initiative or capital grants. Wiebe says it’s unknown whether property owners will see increases in their mill rates in 2010 and property taxes could go up or down.
Burgar also asked, with the interim budget as presented, what does it mean?
“Basically, it means our revenues and expenses are pretty well even-steven,” says Wiebe. “We have no margin of error, right now. It’s going to be very tight. There’s no extra whatsoever, it’s bare, bare bones.”
Burgar also had questions about items which were part of budget deliberations, including $15,000 for High Prairie’s 100th anniversary celebrations in 2010.
“What do you think it’s going to take to put on a fairly decent (event)?” Dumont asked.
“$25,000 is good,” says Burgar. “It just depends on the volunteer support and other organizations that get involved.”
After discussing other items, council passed the 2010 interim budget unanimously.
The provincial government requires municipalities, municipal districts, counties and villages to pass interim budgets at the beginning of the year. It’s done to keep them financially solvent until the government passes its budget and finalizes what it will provide in grants and other funding to them. The municipalities then pass their final budgets in the spring for the year.
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