Town of Okotoks council approves budget with zero-per-cent
municipal tax increase
By Cindy Ballance
Editor
Okotoks residents will not see an increase in their municipal taxes next year thanks to some innovative financial planning by the Town of Okotoks council.
A special meeting was held on Dec. 6 to review the 2000 operating budget.
Councillor Cheryl Pedscalny, chair of the finance and budget committee, said that in response to the residents of Okotoks who stated they do not support increased municipal taxes, there will be no increase in municipal taxes payable by the typical homeowner.
'If you look at the bottomline of a typical homeowner for most that will stay the same,' said Pedscalny.
Taxes are based on market value assessment therefore an increase will only be seen on the bottomline if the market value increased above what is the norm. Those people will then receive an increase in municipal taxes, Pedscalny explained.
In the report to council it stated that the budget does not recommend or require an increase to the tax rate, it does not require an increase in tax revenues beyond those generated by growth and it does not include an inflation factor.
Other highlights of the 2000 budget include:
- $124,000 increase to RCMP;
- $72,000 increase to fire services;
- $53,000 to emergency medical services;
- recapitalization almost doubles. The recapitalization reserve, first established
in 1998, will receive approximately $300,000 in 2000. 'This is very visionary on
the part of the municipality to take care of our infrastructure,' said Pedscalny.
- an eight per cent increase to open spaces;
- an additional $20,000 for annexation related costs;
- $40,000 to the recapitalization reserve to sidewalk, curb, gutter repairs and
replacement with a minimum five year commitment to the project;
- council contingency increase to $35,000 to permit additional support to volunteer
initiatives;
- an increase of $22,800 for seniors and disabled transportation subsidies;
- $2 increase per tonne in tippage fees;
- a one-time charge of $30,000 for Y2K preparedness;
- a two-per-cent salary increase effective July 1, 2000.
Also included in the 2000 budget are various rate changes which include:
- a 3.5-per-cent increase to all utility rates (water, sewer, solid waste services)
which is an impact of approximately $1.18 per month for a typical homeowner;
- a significant adjustment to the curling rink revenues from $35,000 to $45,000.
The increase begins to move the curling rink towards a 65:35 ratio of user pay to
tax subsidy.
- no increase in recreational rates.
- an increase in program services rates to offset direct operating cost increases.
- a 20-per-cent increase in cemetery fees for residents and a 50-per-cent increase to non-residents.
Pedscalny explained that the increase in utility rates was directly related to offsetting
the cost to operate those services.
Also featured in the 2000 budget are staff increases in various services such as
a new RCMP officer effective June 2000; two new firefighters to start in February
and June of 2000; transportation services operator effective April 2000; utilities
operator effective July 2000; and various part-time town staff.
Pedscalny said the 2000 budget was a good indication that the town is in a climate
of financial health and stability for the year 2000.
The budget also indicates that the town achieved and exceeded the goals set out in
1999.
'We have achieved a lot, considering we are one year into the (three year) corporate
plan,' said Pedscalny.
'Responsible management, stewardship and future vision are shown very accurately
in this budget,' she added.
In addition to the goals established in the corporate plan are goals set out for
the Sustainable Okotoks initiative.
Numerous goals have already been achieved through Sustainable Okotoks and continuing
with the sustainability focus is a top priority in 2000.
'I think we are well on our way to accomplishing our goal on the matter (of sustainability),'
said Pedscalny.
'We do believe (the 2000 operating budget) is a responsible and realistic financial
map,' she added.
My furry slippers
ECS students at Dr. Morris Gibson sing
'My Furry Slippers' during the school's annual Christmas concert. The school's production
was 'Santa's Shopping Network' and was held on two nights last week.
The production featured Santa and his TV crew highlighting the great gifts available
for kids, however, when a group of kids takes advantage of the situation, Santa decides
to fly the kids up to the North Pole. Just then the Y2k bug hits. The production
was full of color, songs and talented participants. Various other school concerts
have been held throughout the Foothills and more continue this week.
photo by Cindy Ballance
School division tightens money belt
By Gillian Beckett
Staff Reporter
Despite the recent approval of the one-time funding grant from Alberta Learning
earlier this year, the Foothills School Division will still be feeling a slight pinch
in its pocketbook.
According to its financial audit as of Aug. 31 this year, the division reported an
excess of expenditures over revenues by $593,172.
Although $467,444 will be cleared by the one-time funding grant, $125,728 in expenditures
still remains.
'This means we're in a tight position,' explained Audrey Kennedy who is a general
accountant with the school division. 'There is no extra money if we overspend in
one area.'
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'The operating reserves are amounts that if something extraordinary came up we would have no cushion of funds to cover the costs,' explained division assistant secretary treasurer John Battrum. 'The school division does have cash in the bank through capital reserves, but from an operating point of view there are no funds to absorb extra costs.'
While Battrum added that having no extra funds for operating reserves is rare, he said that this is not a serious cause for concern for the division.
'This means that we will end up with more expenses than revenues at the end of the year,' said Battrum. 'The year we're in has a balanced budget, we just need to be more rigorous in maintaining revenues and expenses throughout (next) year.'
'Our current budget does cover the things we need,' said Kennedy. 'Funds are in place to cover what needs to be done this year.'
Aside from the slight expenditure, one-time grant funding has been approved by Alberta Learning for the Foothills School Division in the amount of approximately $1.9 million.
Some funds from the grant will go towards school building projects such as the Okotoks Junior High School modernization project, expanding the gymnasiums at Millarville Community School and Spitzee Elementary School and replacing computer technology systems (CTS) equipment at Oilfields High School in Black Diamond and Foothills Composite High School in Okotoks.
In addition, all Foothills schools will be receiving additional funds for their school's mini-budgets.
'Money going to schools is one segment of the total distribution of the (one-time) provincial funding,' said Battrum.
'The schools have been advised as to the kind of things the funds can be used for that the school division hasn't been able to fund in the past.'
In total, $200,550 from the one-time funding grant will be distributed amongst the 17 schools and $3,000 will be distributed between the colony schools, Sheep River School in Okotoks, the Stampede Boys Ranch and Education Plus.
