Clarenville's 2013 Budget

It's budget time again in Clarenville. Here is my account of the budget presentation:

Here's the Packet's link to AUDIO of the Budget Council meeting

What is a Budget anyway?

Each year, governments and organizations plan their expenditures and their revenues for the coming year.   The budget process forces the planning process and, in theory, it improves how and where money is spent.   On December 11, Con. John Pickett, Chair of the Finance committee of Council for the Town of Clarenville presented the 2013 Budget to a public meeting of Council.  What follows is an unofficial  summary of the 2013 budget presentation.   

The Opportunities and Challenges of Growth: Clarenville Statistics

·         Clarenville’s population has grown by 14% in the past 5 years.  This makes us one of the fastest growing towns in the province with an official 2011 population of 6,036 people.  See: http://ourtownclarenville.blogspot.ca/2012/02/clarenville-grows-144-in-5-years.html

·         As at the end of November 2012, the Town of Clarenville had issued 60 residential building permits  worth $12m and 6 commercial building permits worth $6m

·        Over the past three years, the Town of Clarenville has issued 242 Residential Permits and 20 Commercial permits rep[resenting $68m worth of investment in our town.

·         The growth has placed pressure on the Town’s resources, and coupled with aging and worn infrastructure, this growth continues to pose a significant challenge for the Town.

·         Revenues and Expenses are projected to be $9,040,832 - an increase 6% over 2012.

Revised Mil Rates ($ of tax per $1000 of assessed property value)

• Residential Mil rates are reduced from 7.75 to 6.5
• Commercial Mil rates are reduced from 8.5 to 8.25

Where Clarenville Plans to get its money for 2013

Revenue Category	Budgeted Revenue (in thousands of dollars)	Percent of Total budget	Percent Increase(decrease) over previous year
Residential Property Tax	$2,680	30%
Commercial Property Tax	$840	9%
Business tax	$1,780	20%
Water and Sewer tax	$1,540	17%
Contribution to Debt Servicing	$877	10%
Other Revenue	$101	1%
Recreational revenue	$498	6%
Poll tax	$260	3%
Gas Tax	$226	2%
Provincial Op. Grant	$145	2%
Interest revenue	$60	1%
Grants in Lieu of tax	$35	0%
TOTAL Planned Income	$9,041	100%	6%

Where Clarenville plans to spend its money in 2013

Clarenville planned expenditures are broken into seven broad categories:

Expenditure Category	Budgeted Expenditure (in thousands of dollars)	Percent of Total budget	Percent Increase(decrease) over previous year
General Administration	$1,176	13%	4%
Fire and Emergency Services	$277	3%	(10%)
Transportation	$1,953	22%	7%
Environmental Health	$1,200	13%	1%
Planning and Development	$148.4	2%	25%
Culture and Recreation	$1,014	11%	11%
Fiscal Expenditures	$3,274	36%	6%
TOTAL Planned Spending	$9,041	100%	6%

Specific investments will be made in:

-          Wage increases for staff

-          Clarenville's brand management initiative

-          New equipment for the Fire Department

-          Increases in honorariums and on call payments for members of the fire department

-          A Municipal Enforcement Officer

-          More summer public works Staff

-          More focus on doing capital works projects in-house

-          More money for the town's garbage contractor owing to growth

-          More money to raise Clarenville’s profile as a great place to live through branding and better communications.

-          Events Centre staff wage increases

-          Clarenville's hosting of the 2014 Provincial Winter Games

-          Phase 2 of the Age Friendly Park on Gladney Street

-          New fencing for the Town’s tennis courts

-          New playground equipment

-          A Vehicle Management System (portable electronic sign)

-          +$700k for road improvements

-          $2.3m for capital works with focus on Park Avenue and Forest Road Area

-          $200k towards improvements to a community chalet and Elizabeth Swan Park (partnering with Kraft Celebration Tour and ACOA)

-          A new property tax reduction policy for low income families.  Based on income this would effective progressively reduce taxes for qualifying home owners.

No Increase in Taxes?

In a brief press release issued today, the Town states that this budget contained "No new taxes or increase to existing taxes".  Although this may be technically true, it is arguably a misleading statement - most taxpayers will actually pay more tax in 2013.  

As you can see in the example below, taxpayers will, in most cases, be paying more owing to that fact that assessments have risen more that the mil rate was reduced.  An "average" home will see their tax bill rise on the order of 7%.