Berwick facing‘fun’ of budget deliberations

BY SARA KEDDY

Kings County Register

Berwick’s upcoming budget process is already full of “wicked problems,” frustration and complicated decisions.

Reports on the planning stages of the 2008/ 2009 budget and councillor comments as things got underway at the Feb. 26 committee-of-the-whole didn’t contain a lot of optimism - despite unanimous agreement top priorities from winter “prominent issues” identification sessions were the long-awaited Apple Dome community facility and the new fire hall.

“This year, people have to realize, will probably be one of our toughest,” Mayor John Prall said. “We have to get some businesses in here, some development - we have to face reality this year.”

Sixty-eight per cent of Berwick properties will fall under the new provincially-set assessment CAP. Only new or properties that changed hands in the last year will generate any new tax dollars for Berwick.

The town is also looking at a $95,000 loss on its commercial roll, as the Avon Foods site was reassessed last year.

Staff are looking to councillors to provide direction as they prepare the first budget draft.

“The budget is a political document, it’s yours and we’re here to help you put it together,” chief administrative officer Bob Ashley said.

“Where do you want the tax rate to be in the first draft?”

Suggested options include leaving the residential rate at $1.55 per $100 of assessment (set for the 2007/ 2008 budget). Taking into account the CAP and inflation, that rate would generate the same amount as last year - but nowhere near cover rising department expenditures, new demands for higher education contributions, costs in Kings Transit and Valley Waste and town projects, such as an economic development co-ordinator.

Or, Ashley suggested starting with a tax rate that captures lost tax revenue - which would certainly be higher, but cover demands and projects the town has said it wants to do.

Councillor beth Easson suggested a draft that includes “what we need to get our bills paid for our priorities, what our partners want, things we’ve said we want.

“I’d like to see what we’ve committed - the tax rate has to be a certain rate.”

Prall, on the other hand, suggested department heads do some cutting now and get a first draft budget that shows whatever shortfall is left at the 2007/ 2008 rates.

“This is an exceptionally poor year to even try and keep up with what we had last year. We may need to do two two things: look at all of it and maybe a rate of $1.80 - I don’t know, that’s just a number; or cut services and see, if it’s bad, how bad is it?”

Councillor Anna Ashford Morton said her last three years on council have been frustrating during the budget process.

“It’s frustrating no matter which approach you take,” town accountant Mike MacLean said. “We’ll see a high rate we have to bring down, or we’ll see a shortfall and go through and nitpick.

“Think of this as the tip of the fun we’re about to have.”

he urged councillors to think hard about options before the next budget discussions, so the process doesn’t get bogged down.