Budget crunching in Berwick
Early drafts show shortfalls, but there are options – including higher taxes – to match
BY SARA KEDDY
Kings County Register
The three-year capital budget made its third appearance before Berwick councillors April 22, and could be approved at the My 8 council session.
The plan totals $4.5 million, but the town’s portion only adds up to $1.9 million after funding partnerships on major projects are accounted for. The 2008/ 2009 capital budget, though, is calling for $139,300 to come out of tax revenue.
Town accountant Mike MacLean reported staff are considering a partnership on a $30,000 software upgrade with Berwick Electric’s billing demand. A sidewalk project on the west end of Orchard Street was moved up to this year as well. Councillors expressed concern over these two projects in the budget’s second draft last month.
Chief administrative officer said staff is urging council to consider the capital budget as a separate document from the operating budget – seen in its first draft later at this meeting. Staff is hoping the capital budget could be passed in May.
“We should stick to protecting a certain portion of the tax rate for capital – sidewalks, sewer work, paving…,” said MacLean. “There’s work to be done.
“An early capital budget means we can get the capital plan going earlier, too.”
Operating assumptions and options
Berwick’s first draft operating budget is looking at a $95,000 drop in tax revenue right off the bat, based on the reassessment of the old Avon Foods plant and changes in the Business Occupancy Tax. Another $14,000 is anticipated to be gone from grants in lieu of taxes on the Nova Scotia Liquor Commission property.
Staff has also identified $132,900 in potential new spending including a $20,700 increase in RCMP costs, $24,900 for work on the gas tax-required Integrated Community Sustainability Plan, $13,500 in increases for four union staff wages and $10,800 for 10 staff CPI adjustments, and $13,300 for a part-time assistant for the chief administrative officer.
“We’re tapped out, and I don’t know how we’re going to do the outside work, the development if we don’t get some help,” said Ashley.
With transfers from accumulated surpluses, a $63,300 increase in property taxes from assessment changes and a $5,000 drop in funding for the Apple Dome, staff brought that figure down to $136,300 – and then offered a number of options that could help council reach that shortfall: use some of the anticipated $300,000 gas tax future funding to pay for the application planning itself, add two cents to the tax rate (while two cents come off the sewer rate for no real change), add two per cent to the tax rate (with the 2.3 per cent CAP, that is really 4.3 per cent), use more of the accumulated surplus, drop the CAO’s requested part-timer, shave off the anticipated $12,000 cost for the October elections, shave from the capital program – “an idea I don’t recommend or agree with – it hurts us in the long run but, in small numbers, it could be manageable,” MacLean said; or look for full recovery from lost assessment from the tax are: equivalent to a “less palatable” eight-cent increase, MacLean said.
‘”We have some homework to do with these numbers,” Mayor John Prall said. Councillors decided to have their finance committee meet with staff to go over the proposal, and council will look at another draft at the May committee-of-the-whole session.
