The proposed three-per-cent property tax increase generated enough public interest to attract a rare full house to council chambers Thursday night to hear council unveil the details of its 2011 budget.
What the public heard was no significant increases to the levels of service provided by the City, no proposed increases to the water and sewer rates and no new borrowing in 2011. However, there are cost increases in 2011, due, in some degree, to the November municipal elections ($25,000), policing costs ($125,000), implementation of the pavement management plan, salary increases for union staff (three per cent), and salary increases for management (two per cent).
According to budget documentation, this year the City’s total combined operating budget is $19.5 million for 2011 — a 2.8 per cent increase over the 2010 operating budget.
Williams Lake property values, as determined by the B.C. Assessment Authority, saw an overall increase of 4.23 per cent in 2011 with a total assessed property value of approximately $1 billion. Although some properties saw a decrease of up to five per cent, others saw an increase of 15. The tax rate is based on $1,000 per assessed property value required to balance the budget.
Largely unchanged from last year the City distributed the tax rate at 38 per cent for residential, 23 per cent for major industry and 24 per cent for business. The proposed tax rate for residential is $5 per $1,000 of assessed value; major industry $88 per $1,000 of assessed value and business $11 per $1,000 of assessed value.
The City’s debt, according to finance staff, is $17.6 million in long-term debt financed by the Municipal Finance Authority; $350,000 in short-term borrowing; and $1.64 million in internal borrowing upon which no interest is paid.
At the meeting, the public questioned council on the funding for the relocation of Station House Gallery, the expenditures on the fire hall and the water and sewer servicing of Woodland Drive.
The proposed Station House Gallery relocation generated significant interest with one member of the public suggesting that rather than the City contributing the budgeted $260,000 for the building’s move and retrofit that gallery supporters “put their money where their mouth is,” and provide $1,000 each to cover the project’s capital costs.
Without a $375,000 grant, Coun. Tom Barr, made it clear that the gallery would not be moved.
City chief administrative officer Brian Carruthers noted that money was set aside in the budget a number of years ago to purchase the property on which the gallery sits but when it became clear the building required significant structural work that money was earmarked for building relocation.
“The money that’s in the budget right now is for moving not purchasing the property,” Carruthers said later, adding it’s expected B.C. Rail will sell the building for as little as $1. Once a grant is confirmed, Carruthers said the City will negotiate a long-term lease with RBC Royal Bank for the vacant lot across the street from the arts centre.
The fire hall’s final cost and its contingency fund was another area of interest.
Carruthers explained the budget on the hall was $6.3 million with “a cushion” for a total budget of $6.5 million.
“If we had ended the project at $6.3 million we would have spent that additional $200,000 and that project would have come out at $6.5 million,” Carruthers said.
In January council revealed that the fire hall was approximately $500,000 over budget, costing about $7 million.
Mayor Kerry Cook clarified the extent of downsizing at City Hall, explaining how during the last term the City had gone from one chief administrative officer and three general managers to one CAO and one general manager at no cost.
Carruthers later explained that at least two other City staff in management positions were identified as redundant — a tourism manager and a manger of council and community relations. Those individuals were given severance pay.
Carruthers could not divulge the amount due to privacy but he said because of the employees’ short length of service the amount was small.
A staff position in economic development was also eliminated; however, because it was a union position the employee moved into another position with the City. A communications co-ordinator was subsequently added following the restructuring.
“We saved money,” said Carruthers. “After the positions were gone it was a net saving to the organization.”
In November, a director of finance was removed from her position without cause; that cost the City approximately $90,000.
The proposed turf facility — currently the subject of a request for proposals for design — was also brought up with a resident requesting that there be no new borrowing for the facility.
No decision has been made on the facility, stressed City staff; a feasibility study and a final design have been completed. If the joint committee — comprising of Cariboo Regional District and City representatives — decides to move ahead the project could go to referendum to be voted on by residents of the City and CRD areas D,E, and F.
Woodland residents concerned for their future had to wait until the end of the meeting to have their issue addressed.
They were told that a design report — funded by the City — would soon be available to council; council would then be required to choose one and apply for a grant to fund all or some of the project.
Council, said Carruthers, is considering a design option that costs $3.5 million and would bring domestic water to the individual properties’ boundaries and not provide fire hydrants. Residents were also told they would have the option on how to fund the remainder not covered the by grant. That could include either having the residents of the City agree to fund the project by going to referendum or establishing a local service area that would allow the City to tax their specific community for the project’s cost.
Carruthers stressed that the project would not be completed this year.
The City’s 2010 five-year plan projects annual tax increases of five per cent through 2014; the plan is not binding.
The five-year financial plan will be adopted April 19; the 2011 tax rate bylaw will be adopted May 10. Since 2001, City tax increases have ranged from as high as 6.4 per cent to as low as zero.
