Taxes are going up, but by less than was initially proposed.
In a lengthy and at times unpredictable debate, municipal council unanimously voted in favour of increasing property taxes by 1.9 per cent to fund the 2017 operating budget, May 2.
The increase is a full percentage point lower than what was initially presented to council in November and lower than the 2.8 per cent presented to council at the beginning of the meeting.
The tax increase is in line with the rate of inflation, according to the Bank of Canada鈥檚 forecast for 2017.
To balance the $21 million budget council directed administration to find savings in the operating budget or to reduce transfers to its reserves. Reserves funded by utilities will not be used to balance the budget.
鈥淚 want this to impact the tax funded portion of our budget, either by reducing operations or transfers to reserves,鈥� said Mayor Richard Ireland.
The approval of the budget came only minutes after council defeated a similar motion by a split vote that would have rejected the entire operating budget altogether.
Initially Coun. Gilbert Wall proposed a motion that would have eliminated a $93,000 transfer from the fire department鈥檚 operating budget into its reserves with the explicit understanding that the fire department鈥檚 reserves would be replaced with money from the municipality鈥檚 restricted reserves. The motion also included a $20,000 cut in operating costs approved by council earlier in the meeting.
That proposal was defeated by a split vote, with the mayor, Coun. Rico Damota and Coun. Dwain Wacko voting against the motion. Coun. Gilbert Wall, Coun. Helen Kelleher-Empey and Coun. Brian Nesbitt voted in favour.
To save face and pass the budget, the mayor quickly put forward a similar motion that included cutting the operating budget by approximately $113,000. The costs will be shared across the entire budget and from the town鈥檚 reserves, rather than just the fire department.
Earlier in the meeting Coun. Wall said he鈥檇 like to see a zero increase in property taxes.
鈥淭here are a whole bunch of sectors in this community that can not withstand a three per cent year-over-year increase, they simply can鈥檛,鈥� said Wall, who has publicly stated he has no intention to run for council again in October.
鈥淚 think for now I鈥檇 like to see this budget zeroed. I have no doubt that we can zero this budget right now and make that political point.鈥�
Rico Damota said he agreed it was difficult for a lot of sectors to absorb the tax increase, but worried eliminating the tax increase could hurt the community in the long run.
鈥淯nfortunately we鈥檝e seen what happens when other communities try to zero their budget. That鈥檚 when you start to get cracks in the foundation,鈥� said Damota.
鈥淚 can鈥檛 see a zero per cent budget being healthy.鈥�
Coun.聽 Helen Kelleher-Empey said she was in favour of a tax increase between zero and one per cent, while the mayor said he was more inclined to keep the tax rate in line with inflation.
He also reiterated his favourable position towards implementing a consumption tax.
鈥淲e on council, at least many of us, have steadfastly promoted a consumption tax, that would be a huge difference here,鈥� said Ireland.
Coun. Nesbitt said he was against specifically stating what percentage he鈥檇 like a budget to come in at, preferring instead to make a decision based on how much it costs to operate the town.
During the discussion the mayor questioned why the municipality was increasing its transfers to reserves by approximately 35 per cent in 2017.
鈥淚 appreciate that it鈥檚 nice to have our assets in good condition and keep building that capital base, but it鈥檚 at somebody鈥檚 expense, so can we not reduce the transfer to reserves to something less than a 35 per cent increase and still work to replenish our reserves?鈥�
Finance director Natasha Malenchak acknowledged the mayor鈥檚 concern, but added the municipality is trying to put away money today so it can replace its assets in a proactive fashion in the future.
鈥淚 know Jasper isn鈥檛 ready for that kind of hit,鈥� said Malenchak. 鈥淭hat being said, I鈥檓 trying to lessen the blow and do it slowly so that we can prepare ourselves for the future.
鈥淚t鈥檚 better to have a plan and have the reserves than to go into debt and that is what I鈥檓 trying to mitigate.鈥�
Administration is currently working on an asset management plan as well as a new policy about the municipality鈥檚 reserves.
Paul Clarke
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