Moment with the Mayor: Budget Particulars

Hi Everyone:

We had some good news with the recent budget. In this budget we were able to hold the line on tax increases to inflation. After the recent increases this is good news. Even though your assessment has risen significantly your taxes won’t be rising. As a note of interest: residential assessments across the province went up approximately 85%. For comparison, Humboldt’s increased 89%. Kindersley’s are up around 82%.

The next financial item on the books is the water rate. Here is a brief explanation of how the water rates work. The province has legislated that water cannot be used as a source of revenue for a municipality. What that means is that municipalities can’t charge residents extra on water to pay for other projects or services. In other words water rates have to be revenue neutral: the price of water has to cover its expenses so it is self-funding. Here are some of the expenses we have for water:

·         Financing $8.6 million for the Water West Project which transports our water from the South Saskatchewan River;

·         Financing $2.2 million for the Water Tower Project which stores 750,000 treated gallons of water;

·         Almost $78,000 for a new well near at the South Saskatchewan River

·         More than $80,000 of upgrades to the Water Treatment plant so we have enough high quality water;

·         For the surveillance of the Water Treatment Plant $19,000 was invested;

·         A new Vending machine for water pick up in the industrial area at a cost of $14,000

·         The financial reserves the Town usually has on store for water have been depleted the last couple of years due to a gap between water rates and the cost of operating our water system. Our deficit between revenue and expenses is $415,000 resulting in our drawing down our water and sewer utility from $1.7 million ending 2011 to $1.4 million ending 2012. If rates aren’t raised this year then reserves will be lowered to approximately $300,000. This is not good if something bad unexpectedly happens.

·         The operational cost of ensuring we have enough safe water on a daily basis,

·         Operating costs include: water main repair and shut off,

·         Repair and replacement of water and sewer pipes,

Based on all of this information it looks like water rates will have to increase. Here is where we need feedback: should we go to a tiered level of pricing? One level of pricing for industrial/commercial users and another for residents. The rationale is based on cost recovery: it costs more to remediate industrial/commercial water, generally speaking, then residential water. What are your thoughts? Please contact the Town or email me at: mayorenns-wind@kindersley.ca.

A great big bouquet this week for Vickie Newmeyer. Vickie has been recognized in the January/February Sask Business Magazine as one of Saskatchewan’s 10 Women of Influence. Congratulations Vickie!

If you have any questions or comments drop me a line at the town office or email me at mayorenns-wind@kindersley.ca. I appreciate your feedback.