Flin Flon city council plans to hold the tax rate steady while pumping another $2.14 million into infrastructure, but some property owners still face significantly higher bills.
Council unveiled its proposed 2016 budget on Tuesday, a $13.44-million document that promises a new dog park and other recreational upgrades.
If approved as expected, the budget will see all property owners pay an additional $17.96 under the special services levy for fire and police protection, a three per cent increase. The actual tax rate, known as the mill rate, would stay the same.
But many Flin Flon properties carry a higher market value this year, according to provincial government assessments, meaning that even with a steady mill rate some taxpayers will pay more to the city.
Mayor Cal Huntley called the budget “challenging” and braced the public for further tax increases.
“I think you’re going to see budgets from the city that are going to, in small increments, continue to grow as everything else does,” he said. “We’re going to have to start addressing, as best we can, some sort of cost-containment. But so many of the services that are provided, you have very little control over. So we have to foot the bill, and it’s being smarter with what you’ve got, understanding that there is going to be an increase probably every year. I think we’re naïve to think our taxes are going to drop. That’s not going to happen in the foreseeable future.”
Even with higher property values and the special services levy increase, the budget projects that total revenues will drop by four per cent over 2015. To help compensate, council plans to draw $215,000 from surplus and reserve accounts.
Planned new capital projects come in at $2.14 million, with council finding dollars for oft-discussed needs such as upgrades to the city garage and Aqua Centre.
Another project on the list is a $20,000 dog park, a facility for which some dog owners have spent years advocating.
“The idea of the dog park is to keep dogs from sh-tting all over the community,” said Huntley. “You can quote me on that one, and people not picking it up properly. I think there is some value in that if it’s done properly.”
Huntley said no park location has been finalized and that the options would be made public before a site is chosen.
As has been the case with each city budget in recent years, the 2016 plan includes $1 million as a contingency amount related to potential upgrades at the water treatment plant.
Huntley said the city is dissatisfied with certain aspects of the plant and believes some work was not properly completed by contractors in accordance with the construction contract.
He said the matter may need to be adjudicated and could end up in court, but he did not know when this “ongoing process” would be resolved.
Coun. Colleen McKee, chairwoman of the finance committee, shared her frustration with the provincial government’s system of assessing property values.
She said the 15 per cent overall increase to residential property values in Flin Flon “scares me.” She also referred to comments the assessment branch made two years ago that indicated this round of assessments would likely show a decrease in values.
“I’m not seeing a decrease,” McKee said.
City treasurer Glenna Daschuk noted that while some residential areas are experiencing higher assessments, others are on the decline.
The proposed budget showed that despite council’s plan to hold the line on spending in 2015, expenses actually rose $774,330, or six per cent.
By way of explanation, Daschuk cited five unplanned retirements and resignations within the city workforce, the price of legal services related to the water treatment plant and cost overruns stemming from legislative requirements for building demolitions.
The proposed budget derives $6.08 million from Hudbay’s grant in lieu of taxes – a six per cent increase over last year – but those dollars must still be shared with the Flin Flon School Division.
The budget is expected to receive final approval at council’s next meeting on June 7.
2016 capital expenditures*
• $1 million as a contingency amount related to potential upgrades to the water treatment plant.
• $452,000 for upgrades and equipment replacements at heating plants, lift stations, wastewater treatment plant, water treatment plant and other utilities.
• $88,000 for upgrades and deferred maintenance at the city garage.
• $85,000 for the Clean and Green program, including various community upgrades, repairs and maintenance.
• $85,000 to repair a leaky roof at Flin Flon City Hall.
• $75,000 to repair curbs and sidewalks in various locations.
• $60,000 for repairs, upgrades and maintenance of “utilidors,” more commonly known as sewer boxes.
• $50,000 for a truck.
• $50,000 for a mechanical hoist.
• $36,000 to upgrade ball diamonds.
• $30,000 for upgrades, repairs and maintenance projects at the Whitney Forum.
• $25,000 to upgrade electrical services at the municipal campground.
• $25,000 for shop, storage upgrades related to parks.
• $20,000 to develop a dog park.
• $20,000 for parking lot upgrades, repairs and maintenance.
• $15,000 to expand the municipal landfill.
• $10,000 for a snow gate for the city grader.
• $7,500 to repair and enhance the Aqua Centre.
• $2,000 to repair stairs at the Flin Flon Public Library.
* = pending final approval of the city’s budget
