Thursday, November 25, 2010

Council holds line on taxes

Martha Wickett - Salmon Arm Observer Published: November 23, 2010 6:00 PM 
Salmon Arm council whittled down the city’s 2011 budget Tuesday, leaving taxpayers with no increase. Taxpayers will, however, still pay an increase in water usage fees as well as a fee for the new garbage collection/recycling service.  Council members were such successful whittlers that the taxation figure dipped below zero, leaving the city with a potential 0.20 per cent decrease, or about a $20,000 surplus. Those funds will be placed in a ‘future expenditure reserve,’ which could be consumed by unexpected expenses before the final budget must be passed in the spring.

The water frontage tax, which is included in the property tax bill in May, is increasing by two per cent or 23 cents per taxable foot, meaning an average size lot of 60 feet would see an annual increase of $13.80. Also included in the property tax bill will be the new garbage collection/recycling service fee of $135 per year for single family dwelling or mobile home. Utilities are billed separately, usually in December. The budget contains a two per cent increase in water user fees – or about an additional $4.44 per year for residential users. At council’s Nov. 15 budget meeting, the tax increase was left at an increase of 0.76 per cent, with hopes of reducing it to zero at yesterday’s meeting. Further cuts Tuesday included a reduction of $94,500 from the $989,000 asphaltic overlay program. Coun. Alan Harrison asked why additional funds are being taken from general revenue rather than using only the transportation parcel tax funding of $894,500 that is destined for road work. He also pointed to much extra work carried out this year due to a $2 million grant from the federal government. Dale McTaggart, the city’s director of engineering and public works, said the list of roads requiring work continues to grow, as does the cost of asphalt.  Coun. Ivan Idzan objected strongly to reducing funds allocated for asphaltic overlays, noting that two years ago staff recommended the parcel tax be tripled to adequately maintain road work, but instead council doubled it.  Harrison, meanwhile, said he thinks the city has done a great job in maintaining roads, compared to other municipalities he’s seen. The $94,500 was cut, with only Idzan opposed. Idzan, in turn, suggesting tripling the parcel tax as staff had recommended, but his motion received no support. Another cut generating discussion was $10,000 for a storage container at the SASCU Sports Fields at Little Mountain to store football gear. Staff told council the funds would be for the second of two big metal boxes that high school football players put their pads and helmets in. That way the change rooms aren’t filled with odours from the gear. Harrison said while he totally supports kids’ sports, he thinks athletes should be taking their gear home with them – noting that his basement smells like hockey gear. Coun. Kevin Flynn agreed, noting council has been told at previous budget meetings that it’s not charging enough for field usage – and so shouldn’t be paying $10,000 because athletes don’t want to carry their gear home.Council voted unanimously to delete the $10,000 for the storage box.

Harrison mentioned there are no funds in the budget should special event funding for policing be required for the Roots and Blues Festival or Sturgis North.While Idzan suggested the surplus budget funds be put into a police reserve, his motion was not supported. Flynn reiterated his position that he wants to see a breakdown of existing policing costs before considering additional funding. He also said if the city is charged, it should bill the event. Harrison agreed, but said he is afraid the policing costs might be more than anticipated. Council took no further action on the issue. City staff are currently investigating cost recovery for special event policing.

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