1. 2009 Budget City of Melfort An Overview of the 2009 Budget

2. Agenda Introduction 2008 Tax Comparison Presentation of the 2009 Budget Reserves Balancing the Budget 2009 Tax Impact

3. Introduction Nurture economic growth Nurture economic growth Replenish Reserves Replenish Reserves

4. 2008 Tax Comparison Council annually compares Melfort’s taxation levels with other Saskatchewan communities. Council annually compares Melfort’s taxation levels with other Saskatchewan communities. Melfort has drop in ranking from 2007. Melfort has drop in ranking from 2007. Minimal variance between 7 th to 9 th ranking Minimal variance between 7 th to 9 th ranking

5. Residential Ranking 2008 Saskatchewan MunicipalitiesProperty TaxesRank Swift Current$1,906.941 Estevan$1,922.282 Saskatoon$2,043.943 Regina$2,297.454 Prince Albert$2,312.335 Humboldt$2,409.636 Weyburn$2,430.207 Melfort$2,443.228 Moose Jaw$2,476.439 Yorkton$2,518.9410 North Battleford$2,969.4011 Melville$3,019.3812 Average$2,395.85

6. Commercial Ranking 2008 Saskatchewan MunicipalitiesProperty TaxesRank Saskatoon$3,795.951 Weyburn$4,721.612 Moose Jaw$4,933.793 Regina$5,165.574 Estevan$5,418.365 Prince Albert$5,434.076 Swift Current$5,670.887 Yorkton$5,674.218 Melfort$5,681.489 Melville$6,137.4410 North Battleford$6,508.0011 Humboldt$6,577.1112 Average$5,476.54

7. Presentation of 2009 Budget TypeExpenditureHow Funded General Operations Fund$6,469,152Taxation Landfill Fund$186,155User Fee Waste Collection Fund$194,600User Fee Utilities Fund$1,832,227User Fee General Capital Program$1,085,267Reserve Interest, MEEP, BCF Utility Capital Program$2,340,950Utility Rates, MEEP, BCF, Gas Tax Special Capital Program$1,268,300Surplus, MFC, SIGI Total$13,376,651

8. Budget Process Implemented status quo budgeting Implemented status quo budgeting With inflationary pressures, status quo budget left City with a $258,000 deficit With inflationary pressures, status quo budget left City with a $258,000 deficit Provincial Government programs affecting Budget: Provincial Government programs affecting Budget:  Municipal Operating Grant, $220,000 increase in revenue  MEEP program, increase road and street repair by $53,000

9. New spending for 2009 Additional requests that were approved by Council: Additional requests that were approved by Council:  Program manager for the new Multi use facility and increase in the advertising budget of $27,057  Existing site and building repair of $15,000  Base tax adjustments for vertical condos of $15,996 Additional requests - alternate sources of funding: Additional requests - alternate sources of funding:  Increase road and street repair by $53,000 (MEEP)  Airport site repair - $28,300 (2008 Surplus)

10. General Capital Budget Updating recreational facilities such as the Northern Lights Palace Updating recreational facilities such as the Northern Lights Palace Completion of the Spruce Haven Park Washrooms Completion of the Spruce Haven Park Washrooms Road base preparation Road base preparation Essential transportation equipment repair Essential transportation equipment repair Repair and improvement of essential sidewalks - MEEP Repair and improvement of essential sidewalks - MEEP

11. Utility Capital Budget Water meter replacement Water meter replacement Manhole rehabilitation Manhole rehabilitation Waterline swabbing Waterline swabbing Fire pump engine replacement Fire pump engine replacement Upgrades to the Northcott Lift Station Upgrades to the Northcott Lift Station Awaiting word on proposal to the Building Canada Fund for a major waterline replacement project Awaiting word on proposal to the Building Canada Fund for a major waterline replacement project  Cost shared with federal and provincial governments  City’s share funded through MEEP, the gas tax program and utility reserves

12. Special Capital Budget Highway #6 widening project funded through MFC with subsidy of interest through SIGI Highway #6 widening project funded through MFC with subsidy of interest through SIGI Airport site improvement - 2008 surplus Airport site improvement - 2008 surplus

13. New Multi-Use Facility Third and final year of ramp up of mill rate increase to meet internal debt repayment Third and final year of ramp up of mill rate increase to meet internal debt repayment Require a.40 mill rate increase to meet internal debt repayment Require a.40 mill rate increase to meet internal debt repayment Total increase of 1.74 mills over the three years Total increase of 1.74 mills over the three years

14. Reserves To fund planned capital programs and equipment purchases with their interest earnings To fund planned capital programs and equipment purchases with their interest earnings Significant depletion on reserves Significant depletion on reserves Less reserve funds to earn interest Less reserve funds to earn interest Low interest rates Low interest rates Council committed to replenish reserves Council committed to replenish reserves

15. Budget Requirements To meet commitment of funding the multi use facility and additional growth and inflationary pressures on maintenance and repair of infrastructure would require an increase of.67 mill To meet commitment of funding the multi use facility and additional growth and inflationary pressures on maintenance and repair of infrastructure would require an increase of.67 mill Council looked at 3 taxation options and the impact on different property classes of tax payers Council looked at 3 taxation options and the impact on different property classes of tax payers Council wanted a tax policy that would achieve an equal property tax increase for all property classifications and values Council wanted a tax policy that would achieve an equal property tax increase for all property classifications and values

18. Balancing the Operational Budget Option 2 Option 2  Mill Rate increase of.48 to 15.16 mills  Base tax increase to the inflationary ceiling of $12  Improved Lot $584  Vacant Lot $212

19. 2009 Tax Impact For a residential property with a taxable assessment of 75,000, this will mean an increase of $40.44 or 2.8% For a residential property with a taxable assessment of 75,000, this will mean an increase of $40.44 or 2.8% For commercial property with a taxable assessment of 100,000, this will mean an increase of $84.48 or 3.0%. For commercial property with a taxable assessment of 100,000, this will mean an increase of $84.48 or 3.0%. Average tax increase of 2.9% Average tax increase of 2.9%

20. Conclusion With this budget, Council continues to find ways to facilitate growth: With this budget, Council continues to find ways to facilitate growth:  Highway 6 commercial development  Taking advantage of government incentive programs Recognize the costs associated with growth: Recognize the costs associated with growth:  Operational and infrastructure pressures  Plan to replenish reserves for future development