Monday council met to discuss ways to use the unallocated budget surplus of $285,415 in the general operating fund.
Major variances that are the source of the surplus are RCMP force billing ($400,000 saved), snowploughing and sanding ($135,000 saved).
Council policy requires the funds be used for things like expenditures, contingency accounts, one time projects, debt reduction, increasing reserves or reducing tax increases.
Director of finance and administration, Kari Bolton, suggested since the city is below recommended levels of surplus, the remaining unallocated money could be used:
• To reduce 2011 taxation;
• Increase reserves;
• Training; or
• Leave in surplus.
Council discussed the amount of $36,000 to be allocated to staff for training. Coun. Oakes stated she was challenged by that number.
“Isn’t respectful workplace training already in the budget?” Oakes questioned.
City manager John Stecyk responded, saying that the budget has already been met, thus allowing for further training funds.
Coun. Sushil Thapar suggested the use of training provided by policies and a booklet.
“We train people and they leave,” he said.
“We invest extensively in training. Can we have written policy and procedures and internet training?”
Coun. Mike Cave supported the additional funding.
“I support these numbers,” he said.
“We need to keep up with the times and I support the training of staff.” Coun.Ron Paull concurred with Thapar, also wanting internet training looked at.
Mayor Mary Sjostrom reminded council training for staff has been reduced over the years.
“From my perspective, I would support,” she said.
“We need to invest not only in our infrastructure but in our staff.”
Council voted to recommend that taxation be reduced by one per cent (about $125,000) with $18,000 taken out for staff training and the residual going into capital reserves.
Frontage tax
Also discussed were potential increases to frontage taxes in 2011.
The utility funds are separate functions that are self balancing – covered by user fees and frontage taxes.
Last fall, in reviewing the funds, it was indicated fees needed to be increased to support costs.
For the 2011 year, water utility fees were increased by 20 per cent and sewer utility fees were increased by five per cent.
Council was asked to give direction on the proposed increases. Sjostrom recommended to increase sewer and water frontage taxes by two per cent, which was seconded by Couldwell, and approved by other members with Councillors Paull and Thapar opposed.
