Terming it the 鈥渇irst blush publicly鈥� Ashley Stradeski 鈥� Director of Finance, with the City presented the 2021 operating and capital budgets in open Council Monday.
Stradeski began by noting budget preparations were begun by the individual departments in September and October of last year.
During these meetings, which were not open to the public or media, some options on more time sensitive decisions related to service levels were presented and decided upon, as well as targets for budget and tax increases were set.
Council gave direction to present a budget with no change in taxation levels from prior year (2020), and we set out with this goal in mind, said Stradeski.
On January 18, 2021 we brought forth a draft budget to the Committee of the Whole meeting that achieved a zero percent increase in taxation, with some changes in resources and allocations, he added.
At that meeting more need for change arose, with the changes brought to an in camera session at the last Council meeting on Feb. 22, said Stradeski.
The document presented in open Council Monday showed a combined Operating and Capital Budget with no tax increases.
鈥淭he operating budget as presented does not require an increase in taxation,鈥� said Stradeski. 鈥淭his is a budget that is very much status quo.鈥�
While Stradeski noted COVID-19 impacted revenues, reducing or eliminating some streams at recreational facilities in particular, that was somewhat offset by grant dollars.
Fortunately for us, relief was available from the Federal and Provincial Governments in the form of the COVID Safe Restart program which provided us with funding of $975,000 to use to offset lost revenue and increased costs related to COVID-19, he explained. The budget as presented includes utilization of just under $350,000 of this funding to offset these decreased revenues and increased costs.
Stradeski said it was a goal to rely as little aspossible on this funding, leaving the remaining amount to cover any other unforeseen deficits from COVID-19. Leaving just shy of two-thirds of this money available at this time allows us some flexibility to apply it to any unusual losses we may occur, or if revenue projections or cost increases from COVID-19 are worse than anticipated
That said there was a need to tighten spending as some costs still rose.
鈥淚n order to achieve a zero percent increase in taxation, other changes had to be made as well. Inflation affects our spending as it does any individual or organization, and thus many of our costs increase annually. This can include utilities, wage contracts, cost of supplies and all other inputs to perform the services the City provides,鈥� detailed Stradeski鈥檚 report to Council.
鈥淭o offset these cost increases, reductions in spending had to be considered. Our goal was to find cost reductions that had the least impact to service levels to the general public. Some full-time positions as well as numerous part-time positions were temporary furloughed with relation to services at our recreation facilities. Further, other staffing changes weremade in areas where efficiencies could be realized and in those divisions/functions that would have the least impact on the provision of services.鈥�
While there is a zero increase, some taxpayers will pay more in 2021.
This budget will result in no overall increase in taxation for the City 鈥� while this means the City won鈥檛 be raising its rates tocollect more tax, it does notmean that individual property owners won鈥檛 see changes to their taxes. It is a revaluation year for property assessments, and with this it is likely that there will be some fluctuation in the value of nearly every property within the City, explained Stradeski.
While we still collect the same amount of taxation dollars, the value of the properties determine how much each individual property will pay of that.
鈥淎s typically happens during a revaluation, there will likely be a third of properties that see some form of decrease in what they pay, a third that won鈥檛 see much change at all, and a third that see an increase 鈥� all dependent on values. How tax collection will be distributed, which we refer to as Tax Policy, will be discussed at a future meeting with Council,鈥� detailed the report.聽
The Gallagher Centre levy will be replaced with a recreational facility levy, and funds will be placed in reserves for future capital recreation related projects.聽 These may include such things as a new Deer Park clubhouse or renovation/replacement of the Kinsmen Arena.
The 2021 Capital Budget includes $4,390,000 of funding from tax revenue, the same as in previous years. It does not include an increase in capital spending and does not require an increase in existing taxation to fund.
The Capital Budget includes a project previously approved by Council as part of the two year Capital Budget approved last year. This includes completion of the Darlington St. /Mayhew Ave. project, including reconstruction of Darlington St. between Mayhew Avenue and Dracup Avenue, as well as the new pathway along Darlington Street.
There are also some new projects for 2021 which were not in the original two year capital budget. These are funded from reserves and do not require an increase in taxation to achieve. The new projects include: York Road reconstruction preliminary design; Deer Park Clubhouse Design; grandstand rebuilding; landfill improvements and upgrades to several water wells ($450,000 over two years, both of which are self-funded,); and support for the Brick Flour Mill Project.聽聽
This Capital budget has paused the normal one percent annual increase in taxes to fund replacement of aging City infrastructure, much of which is over 100 years old.聽 This may be reinstituted as economic conditions improve in future years.
鈥淭his budget, as presented, represents a zero percent increase in taxation for the City while maintaining a balanced budget, which is required of us as a municipality,鈥� said Mayor Mitch Hippsley in a release sent to media after the meeting. 鈥淚鈥檓 very pleased that we were able to maintain 2021 taxes at last year鈥檚 level.
鈥淣ot knowing where the city and the province will be financially and economically over the next year, Council thought it only prudent not to increase taxes this year. This was a promise I and several of the current Council made during the election last fall, and working closely together with city administration we have achieved that goal.鈥�
The draft budget will be posted on the city website www.yorkton.ca to allow for public feedback, and residents may also contact the city via email at [email protected] or telephone 306-786-1721 prior to the next Council Meeting March 29, 2021.
