The City of Estevan’s budget for 2018 includes more money for King Street, funding for a utility project and a one per cent property tax increase.
The budget package was posted to the City of Estevan’s website on Tuesday. The financial plan is expected to be passed in January, with the exception of the mill rate factors.
The city is encouraging the public to offer their thoughts on the document.
Total revenues for the 2018 general fund budget are pegged at $25.8 million, down slightly from the 2017 projected figure of $26.1 million. The difference, according to city manager Jeff Ward, is the loss of funding from the grants in lieu of taxation from the provincial government, and a six per cent reduction in the municipal operating grants.
Property taxes and grants ($21.8 million) will account for the bulk of the revenues in 2018.
General operating expenses are at nearly $24.7 million, up slightly from $24.5 million, which means a net operating surplus of $1.1 million.
Capital spending is estimated at $2.8 million, which results in a deficit of $1.7 million. Ward has recommended the city borrow $2 million to complete capital projects.
The utility fund has more than $8.7 million in revenues for 2018, compared with $7.8 million in 2017, due to federal and provincial support for the water intake project, and a proposed increase for the infrastructure levy.
Utility expenditures are pegged at $4.8 million in operating, plus another $3.2 million in capital.
The most significant capital project for the general fund will be the King Street rehabilitation from Pine Avenue to Kensington Avenue, which has an estimated price tag of $950,000. Once it is finished, King Street from Souris Avenue North to Kensington Avenue will have been resurfaced since the start of 2017.
“There are no undergrounds between Pine Avenue and Spruce (Drive), and the ones between Spruce and Kensington are all redone, and they’re all PVC (pipe), so they won’t have to be redone,” said Ward.
Cundall Drive to Hudson Drive would likely be in the 2019 budget because of issues with the undergrounds.
The 10-year fleet renewal program will continue for $450,000 next year. Ward said the program allows the city to avoid having some years with higher purchasing costs.
“We have a cleaner fleet with fewer repairs,” said Ward.
Sidewalk renewal, repair and construction will receive $275,000. About $200,000 will be directed to repairs and the remainder will be used for construction.
The city spent $175,000 this year, including the construction of new sidewalks on Wellock Road.
“We realized that needs to be a priority, too,” said Ward.
The new Estevan fire hall will receive another $125,000 for further renovations. The emergency measures organization area needs to be set up in the upstairs area, and training rooms and showers are needed.
The pool liner at the Hillcrest Play Park will be rehabilitated. Public health has told the city that some of the pools need to be upgraded. The city received a grant that will cover $15,000 of the $50,000 cost.
There is also money in the budget for the Kensington Greens Park in northeast Estevan.
“It’s a very large park with very minimal grade, so water sets there, the salts come up and it’s very hard to get grass to grow properly in that area,” said Ward.
The city wants a two-year project, with earthwork, drainage and seeding in the first year.
Other highlights from the capital budget include new controllers for some traffic lights, modern sport flooring for the leisure centre’s multi-purpose room, an assessment of need and upgrades in the leisure centre’s weight room.
The budget also calls for establishing a tourism centre in the old concession area of the leisure centre, which would mean discontinuing the use of the tourism information booth near the Souris Valley Museum.
Expenses for an expansion of the Estevan Police Service building and repairs to the Civic Auditorium are not included in the budget right now, but Ward anticipates those issues will be discussed extensively before the budget is approved.
The budget includes a one per cent property tax increase. Ward said council recognizes there have been significant tax increases during the past few years, including the eight per cent increase in 2017.
Reassessment was also very hard on some ratepayers.
“I think council realizes that they have taken the steps in the last four years to correct the path it was on,” said Ward. “Our financial position is quite a bit better, but still being cautious that there is still an infrastructure deficit.”
The water intake project, which will shift the city’s primary water source from Boundary Dam to Rafferty Dam, will continue. There is an estimated cost of $3 million for 2018, with the city, the provincial government and federal government each supplying a third of the cost.
The project is expected to wrap up in 2019.
The infrastructure levy on bi-monthly utility bills will increase, and that money will be set aside to resume the water main replacement program in the future.
“Right now our infrastructure levy is $20 per billing cycle on each utility bill, and that creates about $450,000 per year,” said Ward. “That was being used in our utility fund, just within our operations. Some of that was going to pay down debt that was used on former local improvements, and things like that.”
The infrastructure levy would increase to $30 per billing cycle, which would generate $650,000 a year.
“Once you get to about that $1.2 million or $1.3 million mark, you can now look at what a water main replacement project for an area would be, and you can do it out of that fund,” said Ward.
Since the infrastructure fee is increasing, there won’t be a water consumption rate increase or a utility bill increase in 2018.
The city will pay down $4.038 million in debt next year, which would leave the debt at $26 million. If the city borrows $2 million for capital projects, the debt would finish the year at around $28 million.
