Budget Update

The fourth budget session of the Finance Committee was held on Friday. This brought to a close 11 hours of discussion and analysis of the staff budget which came in originally at an tax increase of $417,480 or 2.84%. (Using 1% = $147,000). A duplication of a charge for $128,000 for LILO debt that appears in the Council side of the Changes and amendments that will be voted on at next Thursday's Finance Committee budget wrap up actually brings the staff budget in at $289,480 or 1.97 %.

The council's wish lists of cuts and additions net out at an increase of $220,919 or 1.50% increase placing the Tax Increase at $510,399 or 3.47% before final adjustments by Council.

I was not privy to all the schedules and numbers been discussed but I believe this is the best example of a budget properly presented by staff in the last 10 years. The discussions about ratios and benchmarks for individual departments that were provided by staff gave the Council more detail than ever before. They seem to have preempted my ratio and comparison study that I have presented each year at the Public Input session on the budget. The stated direction that the staff will embark on a detailed reserve analysis is long overdue. I fought hard to establish a formal Policing Reserve and the analysis of this reserve and its proper ongoing year to year level was outstanding and correct. This and other reserves will be analysed and reserves will be justified or eliminated or consolidated. New reserves including the long overlooked "Tax Equalization Reserve" may be used for the first time for intended longer term goals.

This 3.47% increase will be debated as to the additional items and will be finalized on Thursday. The Council will also have to addressed the final question of whether this increase will be financed by Taxes, reserve draw downs or the 2006 operating surplus.

Don Quixote will be posting his comments on these addons and the financing of the final tax increase as the Thursday Finance Committee meeting approaches. I will also be analysing the final budget when it is posted on the website prior to the mandatory public input session that will happen in the New Year !