First of all I would say congratulations to the new council on passing a budget with a 0% increase.
Some comments raised with me today around town regarding this budget.
Why didn't the previous council pass a budget with a 0% increase?
Good question first of all we could have. Last year we raised taxes 3.2%, remember each 1% increase in taxes equals roughly $65,000. So 3.2% equalled $200,000.
How can I make the statement that we could have done 0%.
Well think about this, in 2010 council placed $450,000 back into reserves, council also took $250,000 and purchased equipment. That a total of $700,000 minus the $200,000 (tax increase) that would have left $500,000 divided by $65,000 that comes out to 7.7% yes if the last council had took the same position as this council, taxes could have been "cut" by 7.7%.
Why did they not do that especially in an election year?
I can only speak for myself.
After years of depleting the municipal reserves and arguing that we needed to get our financies in order. I felt it was time and the responsible thing to do to start rebuilding those reserves. In fact on a number of occasions I heard present councilors stress the need for building up the reserves.
Two, previous council had a policy of spending $250,000 each year to replace the aging equipment fleet, not by incurring debt but by actually putting aside dollars each year.
Number of dollars allocated in 2011 to reserves? Zero
Number of dollars allocated to purchase equipment $550,000 all of it in debt.
How many new employees will be hired because of this new budget?
One new Foreman position for public works
One new position for HR
One new position for Community Services, one employee was previously looking after programming and FCSS, there will now be a full time position for each job (1 becomes 2)
One half time position for finance.
One full time position for Agricultural Services this used to be a part time position
Did the Mayor state that over time, positions will be eliminated by attrition, retirement and reassignment of job duties?
Yes he did, do you really think that CUPE is going to co-operate with management to eliminate positions. Do you really believe that positions will not be refilled? we will find out in March.
Another councilor as stated on his blog that at least we did not raise taxes in our first year 11.2% like the previous council.
Well first of all let me say I never voted for that, so I will not take on that responsibility.
Second the last council left the municipality in a much better financial position our last year we left a budget with a surplus of $450,000 to be placed back into reserves. In 2007 the new council was left with a deficit to deal with.
Also this council did not have the anchor around its neck of having to put $100,000 plus into the Crowsnest Centre! another 2%.
The comment was made last night that taxes should have gone up 2-3%, I ask why with no money in reserves and financing new equipment quite the opposite taxes should have gone down.
But the budget is done now which is good, and we will see where things go. The comment was made during the budget process that between council and administration enough savings could be found in the next six months to pay for the back hoe. So I look forward to seeing a huge surplus in 2011
19 comments:
I have been following this budget process on your site here and it is qiute an educational experience. Lets hope coucil made the right desicions on this budget or we will surely pay for it in the future. I cant wait to see what the critics have to say-- but come to think of it some of them got want they wanted before this budget was passed didnt they
Five more positions any idea what it costs the taxpayers in wages per year. Whatever became of the Crowsnest center.
Well the municipality is does its share to stimulate the ecconomy.
Five more familys will have an income. That is wonderful.
Find the positive here, I look forward to the day that we have many businessess hiring lots of people in the Pass.
Jack
Well they did say they would bring jobs to the Pass
LOL Larry
This sounds like short term gain, long term pain.5 new employees, including benefits has to cost at least 250,000/year.500,000 financed for equipment that we really do not need should cost about 70,000/year if paid for in 10 years.Would have rather seen this money go toward a rec centre or at the very least 3 walls and a roof for the existing pool.
But I will take 0% anytime, so we will wait and see what the future holds.
Answers to all of these:
Miners Journey-Labour is the single largest part of your tax bill you would be amazed how much it has grown over the years
Anonymous 6:13 I will provide labour costs shortly, the Centre the Mayor stated previously he would be bringing forth a Notice of Motion in April.
Jack only the private sector can create long term sustainable jobs.
Larry your right they have created employment.
Remember you have to get larger to get smaller.????
0% sounds great, but no money in reserves I find that very distressing.
Don
So if I read your blogs correctly. If we had not taken on the new positions we could have cut taxes?
Am I following this right?
Dean
I do not want to see more government.
I want a tax cut, never mind this 0% crap.
Its time the taxpayers got a break.
This is all I have to say.
More generally, "smoke and mirrors" may refer to any sort of presentation by which the audience is intended to be deceived, such as an attempt to fool a prospective client into thinking that one has capabilities necessary to deliver a product in question.
Strange that the last council did not see a need for any of these positions.
Five new positions ... bureaucracies are a cancer! If our population continues to shrink and town hall continues to grow, pretty soon it will be the only employer in our town.
I know council is green and that they are still learning. Did the administration put one over on our new council and all of us?
Yesiree Bob, the good people of CNP have been taken, first by the sainted media, next by electing a lifelong 'student of policy'. The good mayor was recognized in the latest 'New Trail' magazine for his win in the CNP election. Any bets the five positions are going to family/friends? Gee do you think? Take care.
If labour disputes continue at the mine. The municipality will become the largest employer in town.
So much for being efficient.
Carol
Few questions for you Mr Numbers
I would like to know how much of our tax dollars are spent on wages.
How does it compare to the overall tax dollars we pay over the years.
Were we spending 25% of our tax dollars in 2005 and say 28% this year on payroll.
If that is the case I can not see the big deal.
Can council say a zero tax increase when they do not know what the province will do with the education portion.
I would love to see these answers.
Sorry Dean one more question the Ecconomice Task Force, what is going on there? At the Forum the Mayor stated that he would have it started two weeks after the election.
Unless I did not hear right.
Dean
Bottom line will there be more employees Dec 31 of this year than there was Dec 31 of last year.
Jerry
Reading Emile Saindon's blog will they be bringing back the Plumber and Building Inspector.
Because we used to have them too.
I love the math of this new council. If I did't put money into my savings and stretched my car payments over five years instead of one. It would be vey easy to balance my books to.
Tony
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