For the first time in more than a decade, taxpayers in the city of Estevan shouldn鈥檛 expect a property tax increase this year.
The city released its budget document on Tuesday, and it shows the city doesn鈥檛 anticipate raising the mill rate. The last time the city didn鈥檛 have a property tax increase was in 2006.
City manager Jeff Ward said that due to the most recent provincial reassessment, some ratepayers were hit hard, especially commercial properties.
鈥淪ome got hit hard by that assessment, and some did not,鈥� said Ward. 鈥淎t this point, with the current state of the economy, we thought a zero (property tax increase) would be appropriate.鈥�
The city also wants to see what happens with oil prices, the equivalency agreement between the provincial and federal governments, and the upcoming federal election.
鈥淭here are just a bunch of things that are up in the air,鈥� said Ward.
Last year property taxes went up just one per cent.
Perhaps the most high-profile capital project for the general fund would be the expansion of the Estevan Police Service building. The city has opted to renovate the building, rather than build a new one, and has allocated $500,000 this year for Phase 1 of the renovation.
Ward noted that any further information on the project would have to come from the Estevan board of police commissioners.
Also in this year鈥檚 budget are renovations for the Estevan Leisure Centre, with upgrades to the roof and the rooftop HVAC units.
There will also be about $250,000 for the Power Dodge Ice Centre. Ward pointed to the washrooms, showers, dressing rooms and seating as areas that need upgrades.
The plan calls for more seating in the bowl seating at the one end, and seating in the east corners, since there is an east entrance for the building.
鈥淲e have got comments that people can鈥檛 see their children at the other end if they鈥檙e playing,鈥� said Ward. 鈥淭hese are just preliminary ideas. We鈥檝e been working with the user groups to get their feedback on what they feel needs to be renovated in the current time.鈥�
Funds will also be allocated for continued sidewalk renewal. There has been a call for improved pedestrian safety at the Pure Energy Learning Centre and Estevan Day Care Co-operative on Souris Avenue North. A pedestrian crossing could be added, and a sidewalk could be constructed from Edward Street to Wellock Road.
There is also a plan to do something at Centennial Park in central Estevan for about $250,000, including the possible construction of a spray park.
There is also money in the budget for a recreational needs assessment, which will look at all user groups, and assess the needs of the community. (This week鈥檚 edition of Lifestyles will have more on the feasibility study).
One project that鈥檚 not included in this year鈥檚 budget is the resurfacing of King Street from Cundall Drive to Hillcrest Bay. It鈥檚 a bigger project than resurfacing other areas of King Street, due to the prevalence of underground infrastructure. Ward said that project remains on the city鈥檚 radar.
As for the utility fund, the city won鈥檛 have any increases for utility or water consumption rates this year. The city also won鈥檛 have another increase to the infrastructure levy.
The infrastructure levy is expected to generate about $650,000 and the money will allow the city to resume its water main replacement program, starting on Veterans Crescent.
鈥淲e鈥檝e identified areas with the most breaks and the most issues, and that will be one of the first priorities,鈥� said Ward.
The water main replacement on Veterans Crescent will be a multi-year project.
Thanks to the money generated by the infrastructure levy, the city won鈥檛 have to complete the work as a local improvement. Previously affected homeowners shared the cost of the project. 听
The city will also move forward with the water intake project, which will see the primary water source shifted from the Boundary Dam to Rafferty Dam. Work was to begin last year, but had to be shelved when bids came in several million dollars over budget.
The project needs to be completed in April 2021, as per the terms of the provincial and federal funding.
The budget also calls for more than $4.3 million in debt principal to be paid down this year, and another $877,685 in interest. That would leave the balance at the end of the year at $23.7 million, but the city also plans to borrow $2 million for some of the costly capital projects, such as the water intake project and the police station renovations.听
Ward hopes the city鈥檚 net debt 鈥� which represents total financial assets versus liabilities 鈥� could be below $20 million by the end of this year.
Revenues for this year鈥檚 budget are projected to be a little more than $26 million, with $22 million for taxes and grants, and a little less than $4 million through fees and charges.
Operating expenses in the general fund are projected to be $24.7 million, which is down by about $100,000. The city鈥檚 staff won鈥檛 receive a wage increase this year, as per the terms of the new collective bargaining agreement. 听
鈥淲e鈥檙e trying to find efficiencies,鈥� said Ward. 鈥淧ositions that are vacant, we haven鈥檛 filled some.鈥�
The net surplus from general operations is to be $1.3 million.
Capital expenses are to be a little more than $3 million. It leaves the city with a deficit, but that would be offset by the borrowing.
Utility operations are to generate $6.7 million in fees and charges, and $2 million through capital funding, for total revenues of $8.7 million.
Operating expenses are slated to be $5.1 million, and the net surplus from utility operations is to be $3.6 million.
Capital expenses are $3.8 million, which would leave a deficit in the utility fund that would again be offset by borrowing.
The city is looking for public feedback on the budget. People are asked to contact city hall with their concerns.
While the next council meeting isn鈥檛 scheduled until Feb. 25, Mayor Roy Ludwig would like to see a special meeting before then to evaluate the feedback from the public, and to pass the budget.听
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