Telkwa council is holding the line on its mill rates, but may bump water and sewer fees this year by as much as five per cent.
At a committee of the whole meeting during its regular council meeting March 12, council reviewed a draft 2019 budget.
The total budget comes in at $8,946,215 in revenue and $8,905,384 in expenses for a surplus of $40,831, although that could change slightly in the remaining weeks as staff continues to tweak the numbers.
However, two non-core projects, a road sander and fire separation renovations for the municipal office, leave the Village short $29,169. Council instructed Stacey Price, the Village’s director of finance, to research whether the project is qualified for using federal gas tax transfers to make up the difference.
Municipal taxes account for $716,660 of revenue, an increase of approximately $56,000 without raising the mill rates. Price explained the increase comes from a two per cent growth in the village and property assessment increases.
There was no consideration of reducing the rates.
“Our goal was to hold the line and that’s what we’re doing,” said Mayor Brad Layton. “I don’t think we can do any better than that.”
The budget includes a transfer from reserves of $135,979 to complete the $3.6-million Trobak Water Tower project, which leaves the balance of the water reserve at nil.
In terms of water and sewer rates, council had planned on raising the fees by two per cent, but Layton suggested a more dramatic increase is inevitable.
Smithers orders 10% increase report
He pointed to Smithers where those rates are likely going up 10 per cent this year after Smithers council ordered a report on the effects of such an increase. It was also recommended by an analyst in a draft report to go up 12 per cent annually over the next five years in order to build up to a provincially-imposed, self-sustaining asset management regime.
In anticipation of a similar mandate for Telkwa, Layton felt a slightly higher increase this year could soften the blow in future years. Council asked Price to revisit the numbers using a five per cent increase for water and sewer rates.
Coun. Matthew Monkman noted ratepayers would not be happy about the increase, but agreed Telkwa needs to start building its reserves for the upcoming asset management crunch.
“You don’t have to convince me, but I think we are going to have to educate the public,” he said.