By Pepper Parr
December 23, 2014
BURLINGTON, ON.
The city released the draft version of the operating budget for 2015 – it amounts to a 3.55% increase over the previous year.
The gross budget of $216.1 million for 2015 will result in a net tax levy of $139,912,648 – this includes $4.8 million that is levied to pay for the Joseph Brant Hospital Redevelopment Project.
There are a number of Business Cases made for increased funding, which is included in the draft budget.
The Gazette will pour over the budget during the holidays and provide detail on a service by service basis as well as detail the several business cases put forward.
The draft budget was delivered to members of Council this afternoon.
Giving the obstreperous tone at the last Council meeting – the budget deliberations could be tense. Councillor Taylor who referred to members of Council as the “gang of four” will chair the budget deliberations which begin on January 12th with a Community and Corporate Services Committee meeting where an Overview and a review of the 2015 proposed current budget.
That event will be followed by a Council Information session on January 21st and then a Public Consultation at the Mainway Arena on January 29th from 7:00 to 9:00 pm
On February 11th the Community and Corporate Services Committee will hear public delegations on the proposed current budget.
On February 17th and 19th the budget committee will review and approve the current budget after which it will go to Council for approval on February 23rd.
At the Council meeting on December 18th the city passed a bylaw approving an interim tax levy. The city sends out tax bills four times a year and cannot collect more than 50% of the tax levy with the first tax bill. Tax bills cannot be sent out until there is a specific by law passed by Council.
Tax bills are sent out in February and April followed by tax bills in June and September.
I think that we receive two “Bills” and each one includes two scheduled payments. The first “Bill” is the interim one which is based on 50% of the estimate for the year spread across two payments. The second “Bill” comes out for the second half of the year based on the actual budget and again is spread across two payments. So really, it’s 2 “Bills with 4 scheduled payments.
What I would really love to see is a full cycle outline of the budget and actual process. There is a budget set and based on that the taxes are collected, what I am not clear on is what happens after the year is over. I can’t imagine that we hit the number right on target but don’t know (doesn’t mean it is not happening) what happens at the end of the year with respect to closing the books. Where are the surplus/deficit funds managed? Is there reporting on this specific data? Or is this still part of the “Budget Baffle”.
Editor’s note:
Municipalities cannot run a deficit.
They must keep very significant reserves.
Each budget year there is a surplus.
During the budget process the surplus is known and it is applied to new projects or put in the Tax Stabilization fund. This fund is kind of like the city’s piggy bank.
What is surprising, a little astonishing is that the writer was a candidate for municipal council who didn’t know the fundamentals of municipal finance.
I’m on equal billing and I’m sure I only get two….I shred all but the one that states final so can’t say for sure, never thought about it.
I know that I receive 4 Tax Bills/year, as stated above, in Feb., Apr., June & Sept. Why does it state that “the City sends out Tax Bills twice a year…..”?
Editor’s note: You caught that one – thanks. It has been corrected.