Kneehill County is working hard on its budget deliberations and is aiming to present a balanced budget.
Manager of Financial Planning, Marika von Mirbach, presented an overview of the budget at the Kneehill County regular meeting on November 26. The presentation was to address questions that have been raised as they proceed to have it completed for approval on December 10.
The operating budget is looking at a core shortfall of $1,075,120, as well as approximately $266,000 of proposed projects.
“If no other adjustments are made, a tax increase of four per cent would be needed to close the core operating budget shortfall,” explains von Mirbach, “and a tax increase of five per cent would be needed to cover the shortfall, plus the new initiatives.”
Ms. von Mirbach outlined some of the ways that they could make up the core shortfall. She noted they had seen an increase in operating revenues of $58,000, related to water distribution trends, and an increase in expenses of $220,000, $133,000 of which is related to water resale, for a net increase of expense of $154,000.
For a starting point to balance the budget for water, it was suggested a $0.20 increase to water distribution systems and a $0.30 per cube increase to bulk systems.
This would increase revenue by $56,600.
Another point to consider is raising the minimum tax rate. Currently, the minimum tax rate is $150 per parcel. Increasing this to $175 would add approximately $41,500 in revenue.
They also explored tax revenue. As a suggested starting point they looked at increasing residential tax revenue by 3.75 per cent, farmland by 3.75 per cent and non-residential by 2.75 per cent.
This, along with an increase in the minimum tax could raise incremental revenues to $822,148.
With these changes, as well as a draw of $466,272 from the Revenue Stabilization Reserve, the County would be in a balanced position.
With this, there would be a plan to contribute $500,000 back to the reserve from the 2024 surplus.
Discussion centred on adjusting tax rates, and the council approved a motion for administration to bring back the budget for approval reflecting these changes, except tax rates.
It proposed an increase of five per cent for farmland, four per cent for residential and 2.75 per cent for non-residential.
