By Thia James

City releases proposed budget, 3.6% tax increase eyed

Mar 1, 2013 | 4:59 AM

The City of Prince Albert has released its proposed 2013 budget, which would require a 3.6 per cent property tax increase to balance its books.

“We’ve been able to get it as low as 3.6 per cent at this point in time. That’s without any changes in levels of service, but we’re expecting to have meetings with council next week to look at levels of service first,” city manager Robert Cotterill said.

The proposed budget points to rising costs over last year’s budget, with police costs—a 4.14 per cent increase leading the way. The increasing costs of salaries—a 1.77 per cent rise over last year and the pulp mill phase-in—a 0.87 per cent increase over last year are also prime expenditure increases.

On the other hand, the some of the budgetary costs are being offset by revenue growth from assessment growth, building permits, the municipal operating grant and transit revenues.

Cotterill said Prince Albert gets one per cent of the provincial sales tax through the municipal operating grant – about $500,000 more than it received last year.

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The general fund, which goes towards much of Prince Albert’s vital services, including police, fire and emergency medical services, transportation infrastructure, and transit will receive cash injections from transfers from the sanitation ($157,000), land ($150,000) and water and utility ($614,000) funds.

However, close to $232,000 will be transferred out of the general fund and into the airport fund.

In the proposed budget close to $29.5 million is expected to be generated from taxes and a further $10.9 million from user fees. But about $38.4 million is expected to be paid in salaries, wages and benefits. That’s a close to $1.4 million increase over last year.

“Some of our problems are more in the external costs of having labour. Some of the pension funds and other funding costs that are outside of just the staffing costs themselves,” Cotterill said.

He said salaries in certain areas of Prince Albert’s operation are higher than in others – he points to the police, for example.

“That’s one that I think close to almost 90 per cent of their budget is salaries. And then when pension contributions have to go up, that hits you twice.”

Prince Albert residents are also being invited to speak to Budget Committee members on Mar. 11, as well as submit letters and speaking notes regarding the either the operating or capital budgets ahead of the public consultations.

The public is invited to attend meetings held by the Budget Committee aimed at reviewing the budget on Mar. 15 and 16.

Click here to view the entire proposed budget document.

tjames@panow.com

On Twitter: @thiajames