The preliminary forecasted municipal property tax increase is 3.42 per cent.
During Monday’s standing committee on finance committee meeting, city manager Patrick Draper delivered a report on the preliminary budget.
“The budget has been based on no changes, no increase or decrease to service levels,” said Draper.
Draper said come Oct. 27 when administration delivers its final draft of the budget for council’s review, it plans to recommend 32 new business cases.
Those business cases be funded through new assessment growth money.
The 3.42 per cent increase follows a 1.18 per cent increase in 2014 – a record low over the past decade.
“The last five years (property tax increases) have been very modest,” Draper said.
Monday’s presentation was not the full 2015 budget presentation and the numbers are preliminary, but Draper said the early forecasts indicate the municipal net operating budget will increase to $87.9-million, $2.9-million more than 2014’s budget for a total of.
The forecasted new assessment growth is about $2.7-million and will be allocated based on a policy developed this year, which would put one-quarter of that money to offset the base budget tax increase and 75 per cent toward new initiatives and other projects for growth purposes.
That 75 per cent – or about $2-million – would be used to fund those 32 businesses cases being brought forward by administration, with a $282,000 remainder transferred to reserves. Draper advised those business cases would include the equivalent of 24.5 new full-time positions if they’re all approved by council.
The capital budget is sitting at about $35.6-million.
Draper said the $2.9-million net increase to the operating budget is primarily because there are no new significant revenue opportunities unlike in recent years.
There’s more money predicted from sales and user fees, but a forecasted reduction in fines and penalties.
The city will also have $300,000 in operating grants from the provincial government.
Draper said there are substantial cost increases due to the price of gas and electricity.
The city manager seemed pleased with the preliminary budget so far.
“All in all, I think a fairly healthy position for the city to be in,” Draper said.
Typically, once the city manager presents the final staff draft of the budget to council, several weeks of public consultation and council debate will follow before the numbers are finalized.
