2011 Budget passed 0%? (Really)

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

Crowsnest Pass Proposed Budget Increases 2011

This is only proposed at this point:

Taxes 5.5%
Water + Sewer 10%
Water Meters to be placed in 560 homes a year for the next five years, to be paid for by the resident $500 to be paid over one year, $40 per month.
Debt of $540,000 to purchase a Grader and an Excavator
Almost all the new employee positions that previous council rejected are back.
Spring Clean up will be drastically reduced.
Reductions in FCSS funding for external groups

Added Dec 16th Policing costs for Rummer Runner Days weekend administration was notified by the province that this will be increasing from $10,000 to $40,000

Funding for external groups from the FCSS will drop from $100,000 to $90,000.

Did you know? Canada's Debt

As of today Canada's debt is over $460 Billion dollars, thats a big number!
It works out to $13733 for every man, woman and child.
And its growing by $93 million per day or $1069 per second.
Its like having a credit card that never gets paid off, the balance just gets larger and larger!

Under Interesting Blogs check out the Canada Debt, see what we has a nation owe.