Drumheller town council has finished reviewing the 2012 to 2014 draft operating budget. Although subject to revisions from council, the draft budget will put Drumheller in a $42,772 deficit for 2012.
The good news is that the deficit will only occur during 2012. In 2013 it is estimated that Drumheller will be looking at a surplus of $81,278 and another of $334,962 in 2014.
“If we have a three year budget we’re allowed to have a deficit as long as there is a surplus at the end of the three years,” said Acting Director of Corporate Services Bill Wulff.
The Town of Drumheller made the switch to three year budgets in 2009; prior to that annual budgets were the norm.
The advantages of the three year budget is that it allows for more accurate planning of future projects and in the annual budget scheme, no deficits were allowed at all.
Before being brought before town council, the budget went through an exhaustive process of creation and review at the department level. Town staff were tasked with scrutinizing each expense.
“Nothing that we did in the budget reduced service levels at all,” assures Wulff.
The bad news is taxes will be increased to keep service at their current levels. Expect tax increases of three per cent each year.
The budget also assumes a 1.5 per cent increase to the Drumheller tax base.
The biggest change in the new operational budget is the inclusion of the operating budget for the Badlands Community Facility. The town’s reserves were hit hard by the construction of the facility, but the budget includes for an injection of $600,000 into the town’s resources over the next three years.
The budget review by council brought a few changes to light. Town staff are now going through the process of making those changes.
The next step in the budget process is reviewing the water and sewer rates, an exhaustive process. Afterwards, the town will review the capital budget which has yet to be reviewed at the department level.
It is hoped that by the end of February the operating budget will be finalized.
