For Immediate Release February 19th, 2012
City Council favours user-pay model in finalizing 2013 Budget As general and utility operating costs rise, North Battleford City Council has agreed to increase revenue in 2013 through user-pay fees, utility rate increases and a property tax rate hike of 4.99%. After weeks of review and public consultation, Council adopted the 2013 Budget on February 19th, 2013. “The 4.99% increase in property taxes only pays for increased costs relating to fire, police and half of facility operations,” said Director of Finance, Matthew Hartney. “The increase does not include expenditures associated with other departments of the City or funding required for capital infrastructure such as streets and waste management.” Where the 4.99% goes:
Hartney stated only 33% of the total operating revenue required comes from property taxation. The remainder of the City’s $10 Million in general operating costs are paid for through other government funding such as grants in lieu of taxes, service fees and user-pay charges.
To reduce the burden on property tax payers, and because revenues have been lagging in comparison to increasing expenses, the City will implement user-pay changes at various City owned facilities in 2013. Hartney said this year, for the first time ever, total operating expenses will exceed $30 Million while revenues are projected to increase by only 4.7%. “We will see new user fees. With that, however, incentives will be created exclusively for City property owners in good standing.” The 2013 Budget also reflects a 6.9% increase to the water utility and the sanitary sewer utility respectively to allow for more investment, replace aging infrastructure and to maintain reserves. 2013 Budget Summary:
4.99% increase in property taxes due to increasing operating expenses and to contribute to reserves for the improvement, replacement and purchasing of necessary assets over the next five years 6.9% increase in the water utility revenue to repay debt for capital and fund reserves for water related projects 6.9% increase in the sanitary sewer utility revenue to repay debt for capital, invest in new capital and top up reserves
“It is never easy to increase utility rates or property taxes, however, I feel the overall impact is quite acceptable,” said Mayor Ian Hamilton. “The property tax increase is minimal in comparison to other municipalities in Saskatchewan, as are the adopted utility rates.” The Water and Sewer Utility Budgets passed 4-1 (Councillor Trent Houk against and Councillors Don Buglas and Ray Fox absent). The 2013 Operating Budget and 5 year Capital Plan also passed 4-1 (Houk against). Bylaws to establish the adopted documents will come forward in upcoming meetings of City Council. The 2013 Budget document contains more detail and is available on the home page of the City of North Battleford website: www.cityofnb.ca For more information: Matthew Hartney, Director of Finance, 306-445-1716 Ian Hamilton, Mayor, 306-445-1728 Jim Toye, City Manager, 306-445-1727 Mike Halstead, Marketing & Communications Coordinator, 306-445-1710
