Sechelt council is recommending a residential tax increase of two per cent and challenging staff to cut one per cent from the operating budget in order to create a balanced operating budget with a bit of money to spare.
The decision was made at the April 3 special committee of the whole meeting after interim chief financial officer Tim Anderson explained some further number crunching helped lessen the $359,265 budget shortfall he reported last week.
"We did a number of things. We revisited all of our operating expenses and revenues for the past two years, looking at variances, just double checking that we had everything in order, and fortunately there were some things we were able to bring into effect which helped," Anderson said. "We did receive a small community grant that got put into the surplus account, quite honestly by mistake, and it should have gone into revenue, and also we are carrying a reserve for the traffic fine committee and we've moved $40,000 of that over into our operating budget."
He also noted the filling of staff vacancies would be put off until after the financial year-end to help lessen the deficit.
Alongside the changes, Anderson recommended a 1.5 per cent tax increase for residents to create a balanced budget. A 1.5 per cent increase works out to about $15 per average homeowner in the District, Anderson noted.
However, that balanced operating budget didn't take into account the new business development committee some councillors wished to start. The endeavour, endorsed at the regular council meeting later that night, will cost the District an extra $150,000 in their 2013 operating budget.
It also calls for $200,000 of proceeds from the Sunshine Coast Community Forest this year.
Anderson said about $50,000 is left in the District's economic development fund, so $100,000 would need to be found.
Coun. Darnelda Siegers suggested staff find a one per cent savings, which would equal $137,000, to fund the effort.
The motion passed, with councillors Alice Lutes and Mike Shanks against.
Both councillors fought for funding for the Davis Bay Wharf restoration project, which council committed to as a top priority last year.
"I think if that money was put aside or set aside for the upgrades to the Davis Bay Wharf, that would be physical evidence that people could support," Shanks said. "But when you're talking economic development, which is spending more and more money to promote people to provide economic development for us, we can spend a whole sock full of money doing that and not get any response, where as [the Davis Bay Wharf is] something physical that people can see and get behind in terms of supporting it."
The project needs $550,000 to be completed this year and the District has applied for a grant for $225,000, which they would have to match if it came in.
Lutes suggested raising taxes by another half per cent to help put more money aside for the matching grant, should it be given to the project later this year.
She put forward a tax increase of two per cent in order to raise an extra $35,000 for the effort.
That motion passed, with councillors Tom Lamb and Chris Moore opposed.
Left without a final decision at the budget meeting was what to do with the capital budget.
The capital budget came forward last week with a more than $4-million shortfall. At the request of council, staff cut some planned projects and purchases to bring the expenditures in line with the $10.6 million available.
Councillors debated cutting still more, with Hockley suggesting slashing every expenditure in parks except for the $5,000 earmarked for a public garden downtown.
The discussion will pick up again at the next budget meeting, which was yet to be scheduled at Coast Reporter's press time.
