County of St. Paul council passed its 2012 budget earlier this month, with revenues around $38.3 million and expenses at $41.3 million. Accounting for over $3 million in amortization of tangible assets on each department’s financial statement, council expects a small surplus of $4,153.
The amortized amount accounts for depreciation of capital assets like roads, a required bookkeeping mechanism since 2009. Amortization is not funded by the County nor are residents taxed for it.
“It’s purely a paper thing. There’s no actually money,” explained CAO Sheila Kitz.
The budget includes a three per cent increase to the municipal mill rate for residential and farmland and one per cent for non-residential, for an expected $784,000 increase in tax revenue over 2011. The mill rate for residential and farmland rose to 3.75 and 12.41, respectively, and non-residential to 16.0048.
“The small tax increase basically just reflects cost of living and general inflation,” said Reeve Steve Upham, noting the increase in price of fuel and wages.
Residential taxpayers can expect an increase between $40-$250, depending on the total assessed value of the improvements in the property. For a residential property with an assessed value of $300,000, the increase would be around $50.
“Residents should also be aware that if they enhanced or completed an improvement, the increase could be much higher as assessed value may have increased,” said Kitz, in an email.
Farmland increases could range from $2-20 a parcel, depending on the assessed value of the land, based on type of soil and productivity of the land.
The County expects to collect $17.5 million in taxes in 2012, with around $9.2 million from commercial/industrial and around $4.4 million from residential. Farmland accounts for over $1.1 million, and machinery and equipment around $2.8 million. School requisition amounts to $3.3 million and the seniors foundation around $286,000, for a balance of around $14 million.
The County’s capital plan increased significantly from last year to $19 million from a budgeted amount of $11 million in 2011. The actual costs came short of the budgeted amount at around $6.2 million last year because not all projects were completed due to a wet construction season.
The budget plans $8.9 million for roads and bridges, more that the $1.7 million actual total for 2011. The County plans to build 18 miles of road as well as seven large bridge files, some which are large culverts.
The County plans to complete the Northern Valley resource road with funding from Alberta Transportation of up to $3 million and industry paying 25 per cent. The County will pay the remaining portion through debenture borrowing and annual payments will be what taxes are based on, said Kitz.
The County budgeted $1.4 million to purchase three graders to replace graders that are off warranty. The budget includes $400,000 for the addition of a rock truck to the County’s fleet and $300,000 for a new gravel truck, which will be used for patching oiled roads.
In other major capital expenses, the Ashmont – Lottie Lake waterline will cost the County $4.3 million.
Over $2 million is expensed for new Mallaig and Ashmont fire halls, which will be funded through debenture borrowing over a 20-25 year period.
In the operating budget, legislative expenses amount to over $500,000, with $134,000 to pay for regular meetings, $180,000 for council’s base pay, $49,300 as delegates to conventions, $42,300 for subsistence, $39,000 for non-taxable mileage and $19,000 for councillors’ course and convention registration.
Fire protection revenues amount to $2 million, with expenses at $551,000 and a projected surplus of around $1.5 million.
Administrative expenses add $1.2 million to the budget. Public works expects expenses of $10.8 million. The County FCSS programs has $236,900 budgeted. Ag. Service Board expenses amount to $588,000 and rec. department expenses are $800,333.
