Budget 2012

So, no new property tax increase for 2012!!

The city delivered its 2012 budget on Monday 12 December and while there is no property tax increase, there will be an annual water tax increase of $35.00. Water tax will now be $615 per year.

This water tax increase was expected as the city laid out a plan several years ago indicating the increase to cover costs associated with the various water and wastewater-related projects. Permit fees will also increase.

The city budget is now $236 million.

The one question I do have for the city is this:-

What is the impact of the 2011 $3.4 million surplus on the 2012 budget?

Is it being used to offset some expenditures for 2012 and if so, which ones?

If it is being used, does this mean the 2013 budget is in a "structural deficit"?

I await a response from the city and will keep you informed.

UPDATE: I have been informed the surplus is not funding activity within the 2012 budget. Councillor Breen, chair of the Finance committee advised -

"We are holding that for the time being to be used for such contingencies as emergency capital (water and sewer issue, etc) or possible pension fund payments needed in 2013 as that is a valuation year (and we all know how the markets have been). Whatever the use it will be for one time uses as opposed to funding ongoing programs".