Moment with the Mayor: Budget

Hi Everyone:

Spring is in the air, and this also means it is budget time. Our main priority in preparing the 2013 budget has been to closely examine the Town’s capital and operating expenses to ensure that all funding requests are well planned, needed in the community, affordable, and can be sustained.  Every budget item should be subject to the same questions: What is the net benefit to the people of Kindersley? Is it a reasonable cost? We want to encourage new initiatives, but these initiatives need to be supported with careful planning.

In recent years, the Town has undertaken some large projects that have resulted in debt that must also be factored into budget planning. Here is a table of our current debt load.

Loan	Original Amount	Grant	Due Date	Outstanding
EK River Pumphouse	$1.4 million		12/31/2013	$140,000
Water West Project	Approx $20.378 million (project nearing completion)	$10.189 million	09/01/2025	$9.179 million
Water Tower	$4.464 million	$2.232 million	Unknown (refinancing)	$2.232 million
Totals	$26.4 million	$12.5 million		$11.551 million

The amount of debt we are able to carry is based on our own source revenue less grants and any non-recurring revenue such as land sales, refunds, and donations. This is specified in Section 161 of The Municipalities Act.

The debt we are now carrying is from investing in Kindersley’s future. So, we have this debt to service; an infrastructure deficit; we have levels of service to provide you, our customers; and we are undertaking a “Needs and Operations Assessment” for some new facilities. These are all factors in budget preparation.

As we develop new initiatives, we have to be mindful of our infrastructure deficit. To bring all of our known infrastructure deficit gaps up to date, we need approximately $40 million. We are also pursuing savings in operations without effecting services. As an example, the Town is looking at leasing equipment rather than purchasing it. Insurance is another area we are looking for savings. Through SUMAssure, the Town is looking at reducing its insurance costs by using the same insurance providers as many other communities in Saskatchewan.

Many people have expressed concern about the number of employees the Town has hired in the main office. Let me say that some of the hires have been the result of both legislative changes and best practices. Here is an example of both: the province requires communities to have capital and asset management plans. Until recently, we had an Asset Manager to develop these plans. The good news here is that our new Finance Director is familiar with asset management. Through him we will not be hiring a new asset management person but doing a combination of contracting services and the hiring of a summer student, resulting in savings of approximately $45,000.

If you were at the rink on Sunday, you, like me, would have discovered a full parking lot. Congratulations to the organizing committee of the Skating Club’s Skatetacular and all of the participants. Congrats also go out to the countless volunteers needed to give our children the opportunity to skate, learn, and perform.

For the past two weeks, the annual Music Festival has been ongoing. Congratulations to the organizing committee for their dedication in organizing this event year after year. Congrats also go to all of the musicians who participated and their dedicated teachers and patient parents.

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.