BY KIRK STARRATT

kstarratt@kentvilleadvertiser.ca

NovaNewsNow.com

Kentville town council has increased tax rates for the first time in nearly a decade and had to do some last minute scrambling to balance the budget.

The town learned of a clawback in revenues after Finance Director Debra Crowell had sent her initial budget report, including tax rates, to the council advisory committee (CAC).

For the residential property owner, the overall tax rate is increased by three-and-four-fifths cents to $1.38 and one-fifth cents per $100 of assessed property value, including fire and hydrant area rates.

The commercial rate will increase by nine-and-one-half cents to reclaim a loss in assessment and associated revenue related to the Business Occupancy Tax phase-out. Added to this will be an identical increase as that applied to residential assessments of three-and-four-fifths cents. The total commercial rate for 2008-2009 will be $3.17 and two-thirds cents per $100 of assessed property value, including fire and hydrant area rates.

A residential dwelling assessed at $100,000 for 2008 would spend $1,381.70 for service delivery, an increase of $38.50 over last year. A Kentville business assessed at $100,000 for 2008 would spend $3,176.30 for service delivery, an increase of $132 over last year.



Shortfall in expected revenue

In late May, the town was informed that the Nova Scotia Power Incorporated grant in lieu of taxes for 2008-2009 was $10,200, leaving a shortfall in expected revenue from this and other sources of $109,800. Service Nova Scotia and Municipal Relations disclosed that for years transmission lines had been included in the town’s grant, but the error was corrected this year. Expenditure increases include a mandatory provincial education increase of $36,400.

The taxation rates required to balance the draft budget were unacceptable to council. Council had agreed previously that there would be a small tax increase for municipal purposes and the provincial mandatory increase would be passed on to the taxpayer.

However, because of the revenue shortfall, council directed management to pare more from the expenditure side of the ledger, with any shortfall from this exercise being withdrawn from the town’s perpetual fund.

Council passed a motion that the operating budget would require a residential tax increase of no more than 2.9 per cent and that the required commercial tax rate increase would be no more than 4.3 per cent, including the Business Occupancy phase-out.

Council has approved a balanced operating budget totaling $10,036,700. Operating expenditures have increased by $821,500 or 8.9 per cent over last year. Using last year’s tax rates, there was a budget shortfall of $136,900.



Back to the drawing board several times

“It was a challenging budget. Senior management had to go back to the drawing board several times,” Crowell said. “For the first time in nine years, the taxation rates for the budget year 2008-2009 must be increased.

“Kentville has clearly sustained a stable tax rate,” Crowell said about the past several budget years. “Council is determined to operate an efficient organization while providing a wide variety of programs and services for a reasonable cost. For 2007-2008, of the 31 towns in Nova Scotia, Kentville offered the second lowest residential rate and the fourth lowest commercial rate.”

A recommendation had been made at a recent CAC meeting to approve the town’s three-year capital budget, including $2,364,000 for 2008-2009. However, the town was notified recently of a loss of provincial funding for a recreation project and the result was that changes had to be made to the draft capital budget.

Council has approved the three-year capital budget with $2,343,500 for 2008-2009, $2,446,000 for 2009-2010 and $3,539,900 for 2010-2011.



Mayor’s comments

Following the ratification of the town’s 2008-2009 tax rates and operating and capital budgets at the June council session, Mayor Dave Corkum said he commends council and staff for working long and hard to provide citizens with top-notch services at an affordable price.

“We can’t stress enough that we still have the second lowest tax rate of any town in the province,” Corkum said, pointing out it’s easy to compare with other towns what Kentville offers in services compared to the tax rate and it’s clear the public is being well served. “It’s a situation where a lot of other towns call and ask how we do it.”

He said the town has a high standard of policing, some of the best recreation facilities, and they’ve actually added services this year, including Sunday snow removal, which was a public safety issue. All fuel costs are going up and somewhere along the line it has to be passed on.

Corkum said the town really is a great place to live, work and play, but that doesn’t come without a price.

“That’s why we’re elected, to deal with the tough issues,” Corkum said, pointing out that he plans to reoffer as mayor in the upcoming municipal election.



Where your 2008-2009 Kentville tax dollar goes:

Protection, 26 cents; Transportation, 16 cents; Provincial Mandatory, 12 cents; Administration, 11 cents; Recreation, 10 cents; Debt (Principal), 7 cents; Area Rates, 6 cents; Solid Waste, 5 cents; Development, 4 cents; Other, 3 cents.

(Courtesy Town of Kentville)