Wawa Municipal Council's had its first look at this year's operating budget.
Just over a month after approving a $6.4-million capital budget - most of which will be covered by outside funding - Council reviewed the proposed operating budget, which was designed to limit the levy increase to no more than 2 percent - keeping in line with the cost of living - while adding nearly $813,000 to capital reserves, reducing discretionary spending, and paying down debt.
C-A-O/Treasurer Maury O'Neill noted current COVID-19 pandemic was considered, particularly reduced revenues and the need to provide taxpayer relief - with $151,000 included in the budget to address that - though she emphasized major capital projects including the Connecting Link will proceed - as it's fully covered by outside grants - and this year's water and sewer budget will be the first not subsidized by property taxes - provincial law requires water and sewer rates to fully cover costs - with a $76,000 "Water Stabilization Fund" to be established.
The $13.2-million budget is actually a 5.5 percent decrease from 2019's, as it expects substantially lower revenues, which will be vastly outpaced by expenditures for Community Services and Tourism, Infrastructure Services, and "admin, Council, COVID, and seniors", covered by much higher revenues than expenditures from "finance, taxation, and boards".
Major revenue drops are attributed to the cancellation of this year's Northern Nationals Drag Race - reducing the Community Services and Tourism department revenues by nearly a third - as well as lower airport revenues and fewer permits - all changes due to COVID-19 - plus a roughly $750,000 drop in government grants.
A 2 percent levy increase is proposed - which would bring in over $92,000 more - while user fees would rise 2 to 5 percent this year, though the Municipality's suspending the hiring of new or non-critical positions or discretionary training, conferences, or travel, cancelling events like the drag race and summer programming, and considering deferring some capital projects.
Tax billing due dates will be delayed to the end of July and October, to offer some relief for taxpayers.
The proposed operating budget was only brought for review, with further Council review and public input to May 8th, so it can go to a vote for approval on May 12th.