Further to my post of December 19, administration's recommendations on what we need to spend on our Capital Budget.
http://crowsnestpasshome.blogspot.ca/2014/12/crowsnest-pass-capital-budget-2015.html
$14,143,500 is a very large number and a lot of is subject to grants, but here is the breakdown of the revenue sources.
Grant AMWWP $3,327,500
Grant MSI Capital $4,376,000
Grant FGTF/BMTG $1,300,000
Grant ACP $114,000
Longterm Financing-Equipment $1,310,000
Longterm Financing-Frank WWTP $1,672,500
Operating Budget $1,347,500
Reserves-Equip + Electrical $696,000
Total $14,143,500
Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts
Monday, December 29, 2014
Monday, April 7, 2014
Crowsnest Pass Budget down to the wire.
First reading of the mill rate bylaw was passed on April 1, second
and third reading are scheduled for April 15.
Highlights:
Salaries and wages increased by 3% (collective agreement
with CUPE effective Jan 1st) additional cost of $164,000.
Municipal Insurance costs increased by $31,000..
Property tax base dropped by 2.1%
General Municipal Taxation for 2014 will be $6,921,689
versus $6,681,111 for 2013
We will be spending $633,700 on capital, which will include
the following:
Two pickups for operations $68,000
Two wheel loaders $375,000
Wastewater Inspection camera $11,700
Renovations Coleman Seniors Centre $19,000
Swimming Pool Conceptual Design $15,000
Albert Stella Memorial Arena Renovations Scope $35,000
Dressing Room Addition Roof Sports Complex $50,000
Server Upgrades and desk computer replacements $60,000
Reserves will be increased this year by $290,500 versus
$240,666 in 2013
Franchise Fees will not increase this year.
Utilities will increase by 4.6%
Legal Fees in 2013 were budgeted at $15,000 actual cost was
$156,431 budget for 2014 is $140,000.
Ski Hill manager eliminated savings of $61,000 a year also
revenue for 2014 was decreased by $58,000, 2013 budget was $252,710 with actual
revenue of $187,418.
Peace Officer reduced to one position effective May 1st,
administration informed council that most communities only have one position
for a population of 5500.
Ag Services grants decreased by $30,000.
Upgrades to municipal utilities:
$30,000 to the Electrical system
$24,000 on the water system
$58,000 on the wastewater system
$12,000 for garbage collection bins and Eco recycling
Economic Development will bring in revenue of $183,000 from
various conditional grants.
Personnel requirements:
2013 budget allowed for 54 full time positions, 3319 hours
of overtime, and 45,214 hours of casual employment.
2014 budget allows for 54.75 full time positions, 2858 hours
of overtime, and 37,650 hours of casual employment.
Note: The town rounder position was counted in the casual hours
last year, it is now a full time position, overtime hours have decreased by 461
hours and casual hours are reduced by 5499 hours after allowing for the town
rounder hours from last year.
Debt:
The municipality will assume debt of $1,672,500 to construct
a new Clarifier at the Frank wastewater plant subject to approval of $3,327,500
in grant funding from the province.
The municipality will assume debt of $343,000 to upgrade the
Sentinel Water Treatment plant, administration as proposed that this debt, will
be financed by the owners of the properties in the Sentinel area under a Local Improvement
program (Property owners will get to vote on this).
The payment on the $1,672,500 over 10 years would be
$190,200 per year.
2014 we will pay $480,000 on debt payments, and roughly the
same amount next year which will almost clear up all existing debt.
Keep in mind the mill rate can be amended by a majority vote
of council on either second or third reading.
Well deserved Kudo's to the CAO, the administration staff we do have, and the hourly employee's who put a lot of effort into getting this budget in place.
Personally I would have liked to have dug a lot deeper into this budget and the various areas that drive the numbers but unfortunately not having a finance officer in place since November and no Public Works Director for almost the same time frame made things very difficult.
I do believe that the 2015 budget process will be much more efficient than what we just went through.
Thursday, March 10, 2011
Simplest of Questions
I know I have touched on this issue previously, but its important enough to talk about it some more.
I was asked a question on the weekend by a municipal employee.
It was phrased this way: "How can two councils be so different, last year all we heard was the municipality had no money, then this year we hear that we are getting five more employees and a bunch of new equipment"
Simple question with a simple answer.
The municipalities reserves had been significantly depleted by infrastructure over the last 5-6 years. Last year council determined it made sense to not increase the number of employees but to put money back into reserves. ($450,000)
Previous council knew that the municipalities equipment fleet was old and needed to be replaced, so for the last five years was putting money into new equipment. ($250,000)
So now you come to 2011 its not like the municipality suddenly got wealthy, in the paragraph above there is $700,000 accounted for. So if you took a different approach and dispersed that money in different ways, lets say $3-400,000 in wages.
$120,000 to make a payment on the $560,000 debt to buy new equipment. The balance to pay for any other additional costs to offset a 0% tax increase.
Again its not like the municipalities financial situation got better, it would be no different than a couple saying we are not going to pay our mortgage this month or put any money in savings because we are going on a holiday, when we get back we will go out and finance a brand new truck. Short term appearance to the rest of the world is that you are doing very well.
Moving forward how does the municipality pay that $3-400,000 per year in wages year after year plus the $120,000 payment on its new debt. Plus will there be no further requests for new equipment next year? and eventually those reserves do have to be replenish at some point.
I was asked a question on the weekend by a municipal employee.
It was phrased this way: "How can two councils be so different, last year all we heard was the municipality had no money, then this year we hear that we are getting five more employees and a bunch of new equipment"
Simple question with a simple answer.
The municipalities reserves had been significantly depleted by infrastructure over the last 5-6 years. Last year council determined it made sense to not increase the number of employees but to put money back into reserves. ($450,000)
Previous council knew that the municipalities equipment fleet was old and needed to be replaced, so for the last five years was putting money into new equipment. ($250,000)
So now you come to 2011 its not like the municipality suddenly got wealthy, in the paragraph above there is $700,000 accounted for. So if you took a different approach and dispersed that money in different ways, lets say $3-400,000 in wages.
$120,000 to make a payment on the $560,000 debt to buy new equipment. The balance to pay for any other additional costs to offset a 0% tax increase.
Again its not like the municipalities financial situation got better, it would be no different than a couple saying we are not going to pay our mortgage this month or put any money in savings because we are going on a holiday, when we get back we will go out and finance a brand new truck. Short term appearance to the rest of the world is that you are doing very well.
Moving forward how does the municipality pay that $3-400,000 per year in wages year after year plus the $120,000 payment on its new debt. Plus will there be no further requests for new equipment next year? and eventually those reserves do have to be replenish at some point.
Monday, January 24, 2011
Special Council meeting "as the die been cast?"
Not trying to confuse anybody but there is a G+P meeting on January 25, 2011.
First of it struck me as strange that at the meeting of January 18, following a one hour debate on the budget. With a lot of questions asked by council, and administration indicating that they would bring those responses forth at the meeting of Jan 25 that they wouldn’t just add the budget to the G+P agenda.
After all, they left Jan 18 still sitting at 5.3% (which means in simple terms an extra $365,000 a year coming out of the taxpayers pockets).
In my mind I felt Administration would come back on the 25th with clarification to the councilors concerns, pull all the give me’s out of the budget. (Item’s that the admin team would like to have, but understand that to keep what they really want, they will have to sacrifice during the final strokes of the budget process to make the politicians look good).
Then I got to thinking maybe the “die as already been cast”, Councilor Saje will not be at the meeting of Feb 1st, if the budget was on the G+P meeting agenda then no motions could be past.
Therefore, what happens Jan 25, in my humble opinion?
Administration brings forth $200-250,000 in “give me’s” carpet in the office; reduce two casuals, float, storage shed for the Hillcrest Fire Department etc, etc. Council digs in there heals a little bit understanding that there will be a negative public reaction to all the new jobs being created, so a couple of them get chopped, in addition the evil water meters go back for further study.
Some councilors will suggest that a few dollars need to be put aside for new initiatives (marketing the community, looking at new facilities) the argument will be made that more time is needed, to review the municipalities services and facilities, wait for the recommendations of the economic task force .
Therefore, council in conjunction with administration will be more than willing to look at those issues next budget.
Then the majority supports a 1-2% budget with much bigger and better things to come next year.
I have been asked how does the municipality find the money to pay for all these new positions, keep in mind that last year council at that time did not allow the new positions which saved approximately $250-300,000.
The previous two councils had taken a position that each year they would put $250,000 aside to replace the aging equipment fleet; the present budget proposes to take on debt of over $500,000 to finance equipment. Where did the $250,000 go? Look at the new positions.
Anyway I may be wrong and if I am that’s Ok, I maybe off on my timing. But I look forward very much to seeing who takes what positions.
And much more importantly who proposes real “change”.
First of it struck me as strange that at the meeting of January 18, following a one hour debate on the budget. With a lot of questions asked by council, and administration indicating that they would bring those responses forth at the meeting of Jan 25 that they wouldn’t just add the budget to the G+P agenda.
After all, they left Jan 18 still sitting at 5.3% (which means in simple terms an extra $365,000 a year coming out of the taxpayers pockets).
In my mind I felt Administration would come back on the 25th with clarification to the councilors concerns, pull all the give me’s out of the budget. (Item’s that the admin team would like to have, but understand that to keep what they really want, they will have to sacrifice during the final strokes of the budget process to make the politicians look good).
Then I got to thinking maybe the “die as already been cast”, Councilor Saje will not be at the meeting of Feb 1st, if the budget was on the G+P meeting agenda then no motions could be past.
Therefore, what happens Jan 25, in my humble opinion?
Administration brings forth $200-250,000 in “give me’s” carpet in the office; reduce two casuals, float, storage shed for the Hillcrest Fire Department etc, etc. Council digs in there heals a little bit understanding that there will be a negative public reaction to all the new jobs being created, so a couple of them get chopped, in addition the evil water meters go back for further study.
Some councilors will suggest that a few dollars need to be put aside for new initiatives (marketing the community, looking at new facilities) the argument will be made that more time is needed, to review the municipalities services and facilities, wait for the recommendations of the economic task force .
Therefore, council in conjunction with administration will be more than willing to look at those issues next budget.
Then the majority supports a 1-2% budget with much bigger and better things to come next year.
I have been asked how does the municipality find the money to pay for all these new positions, keep in mind that last year council at that time did not allow the new positions which saved approximately $250-300,000.
The previous two councils had taken a position that each year they would put $250,000 aside to replace the aging equipment fleet; the present budget proposes to take on debt of over $500,000 to finance equipment. Where did the $250,000 go? Look at the new positions.
Anyway I may be wrong and if I am that’s Ok, I maybe off on my timing. But I look forward very much to seeing who takes what positions.
And much more importantly who proposes real “change”.
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