Interim budget highs and lows

Sharon McLeay

Times Contributor   

 

Wheatland County council members ran through the creative process that General Manager of Corporate and Financial Services Pat Lietch used to develop the 2014 interim budget and come up with a moderate five-year plan for county spending. The figures will be refined over the next three months, with final budget approval in the spring of 2014.

“In setting the 2014 to 2018 budget, administration has strived to keep property tax at a reasonable level, without sacrificing the level of service that has been provided for years,” said Lietch.

Lietch said that she adjusted the budget by a cost of living rate of 1.7 per cent, using the 2013 Alberta Consumer Price Index. Tax requisitions and levies for school tax, Wheatland Housing and Drumheller solid waste were also based on 2013 values.  Both will have to update in the final budget. The total budget increase for 2014 is anticipated at 4.67 per cent. The tax rate passed on to ratepayers will be set in April, after the provincial linear assessments and funding formula is complete, and the 2014 Annual budget and Tax Rate Bylaw is adopted on April 1, 2014. 

Unrestricted surplus was redefined under restricted reserve categories in 2013, and those restricted reserves are set aside in anticipation of future projects. This spreads out the costs and helps keep the impact soft on ratepayers.

“The importance of sufficient restricted reserves continues to play a vital role, particularly with respect to future considerations such as water, wastewater, waste transfer, gravel pits infrastructure and major capital purchases. Making regular, consistent contributions to restricted reserves can help smooth tax funding for capital assets,” said Lietch.

Restricted reserve transfers were $387,000 from extraordinary operating projects, approximately $ 17.37 million for the rural roads restricted reserve, $12,485,088 from capital projects restricted reserves and a few other restricted reserves. 

Leitch was challenged by the decreases of provincial and federal grant programs and had to find alternative grants to recover some of the $3.2 million no longer available to municipalities in 2014. She gives credit to the new grant writer/coordinator for helping in securing application information that will see close to $7.5 million in grant funding secured. 

Some of the potential costs contributing to the 2014 operating budget are: $10,435,481 in extraordinary items; $203,184 debenture debt that is funded back by the seed cleaning plant; $62, 656 for provincial dispatch transitioning; fire operations $486,276, and $1,172,633 for fire small and large capital and buildings, which are funded from fire tax levies. The fire levies are based on a flat .04 tax mill rate. A $250,000 WaterSMART stormwater study cost is hoped to be recouped with a regional grant application. The Hwy 1 Area Structure Plan and updated Land Use Bylaw at $145,000 and $225,000 respectively are hoped to be covered under another grant application.

Larger capital projects for 2014 will be the expansion of the administration building costing approximately $2 million and funded through reserve and grant money, a large chunk to transportation for road grading, paving and building projects, fleet and equipment purchases of $2.5 million tagged, with about .5 million coming from the Ag Service Board equipment reserves. The water upgrades to the Gleichen water treatment plant are still being reviewed, but will be finalized by spring, and about $1.225 million set for Carseland, Speargrass, Gleichen, and Rosebud water projects. It is also hoped that waterline and water services for county shops and the Dalum fire hall can be included. Improvements to the Carseland wastewater treatment lagoons have been carried over to 2014, and a new lift station, lagoon liner replacement for Gleichen, and wastewater field expansion for Rosebud are anticipated to the tune of $1.6 million, with grants offsetting costs by $1,369,500. 

 A five-year performance review for the various financial activities and detailed documentation was supplied to council for their review. The final budget will be completed in the spring, and will be posted on the Wheatland County website.