At the March 12 meeting of Town Council, both the operating and capital budgets were brought before Council for approval. Both passed and residents will see a 3% tax increase for each year until 2014.
The operating budget had been under review by Council since mid January. Administration has completed making amendments highlighted by Council.
Over the next three years the Town of Drumheller projects a surplus of over $258,000.
The budget was passed unanimously by Council.
The capital budget was then presented to Council for approval, after changes were made at the behest of Council. The biggest items in the capital budget are the renovations to the Civic Centre and building the water transmission line to the western edge of East Coulee.
Councillor Garbutt had concerns over the capital budget.
“Recent changes to our borrowing make me concerned. We’re projecting, over the next ten years, a $23 million difference, in the negative, between what we have planned for projects and what we have projected for revenue,” said Councillor Garbutt. “I wonder if there is some other area to cut.”
For example, the Town will be borrowing $400,000 to pay for their 10 per cent contribution to the construction of the water transmission line to the western edge of East Coulee. The Town has stated on prior occasions that it would fund the project from reserves instead.
CAO Romanetz explained the deficits only represent a situation where all projects go ahead as planned, which does not happen. Projects may shift in priority over the years and grant money may alleviate the costs.
Another factor is the Town no longer has to borrow $3 million to construct water distribution lines throughout East Coulee and Lehigh, therefore saving money.
An additional item was added to the capital budget. CAO Romanetz presented the idea to bring in a landscaping consultant to look at options to improve the town entrance corridors and make those improvements. The budgeted cost was $50,000.
The capital budget was passed by Council, with the addition of the entrance corridor project, though Councillor Garbutt opposed the 2012 budget as presented.
Now that the budget is passed, residents can expect their property taxes to increase by 3 per cent this and each year until 2014.