After 3 special council meetings, much deliberation, and working through difficult circumstances, Melville City Council approved the 2023 Capital and Operating Budget Monday night.
The budget process took longer than expected due to inaccuracies related to increased costs of major capital projects and its financial impacts in the City’s Asset Management Plan, and the previous Finance Director leaving last year. An interim budget was passed earlier this year so operations could continue as normal until a 3rd-party review was completed and receive approval from Council.
This year’s budget is focused on maintaining current levels of services, while working to complete the Landfill and Lagoon expansions, and Lift Station #1; these 3 capital projects have a combined cost of $8,283,471 for 2023.
Council had already approved a 10-year, $2-million loan to cover increased costs related to the Lagoon project in December, and it carries over into this budget. As of January 1st, 2023, Melville is just under it’s debt limit of $10-million, at $9,884,518.
“It’s imperative we get this right,” Acting City Manager Chris Bruce told Council last night, to keep its finances as accurate as possible to combat any cashflow concerns.
Tax increase, cuts, and deferrals to next year
City Council approved a tax increase of 5.78%.
Bruce says the City’s increased utility costs, high inflation, and the 3 capital projects are some factors for the tax increase. The other is tax deferral from 2021 to ease the burden the COVID-19 pandemic was having on residents and businesses at the time; Bruce says this year is the last year for collecting the remaining amount of taxation revenue from that year.
Many cuts and deferrals were made in order to reduce as much financial burden on residents as possible. They include, but are not limited to, the Public Works Building and Fire Hall upgrades, multiple road paving projects, the street sweeper, and replacement vehicles. Bylaw services will decrease, as the Bylaw Officer will be working 3 days a week as opposed to 4, in order to maintain 2022 costs.
“We’re asking for our citizens to be considerate of our situation, and this year it will be difficult. There will be things that should be done. There will be potholes in our streets…don’t like that, but again, that’s the price we pay for going with priorities.” said Melville Mayor Walter Streelasky of the 3 capital projects taking high priority over other items.
Not everything was pushed to next year
While the Landfill, Lagoon, and Lift Station projects dominate the budget, there are a few items budgeted for this year in Melville.
The compressor 2 motor for the ice plant at the HCUC needs to be replaced due to a bearing failure, at a cost of $15-thousand.
The City budgeted $95-hundred to paint all crosswalk and yellow curbs; and $35-hundred is allocated to re-forest Melville Regional Park.
Savings from some departing staff earlier this year, cuts to the Melville Marketing program and sale of a retired Handi-van used by the Fire Department were re-allocated to the Mayors Contractual Account to fund the Mayor’s Caucus meeting on June 7th and 8th in Melville.
Short-term pain, long-term gain
Many of the councilors, including Mayor Walter Streelasky, said while the budget belt is tight right now, completing the Landfill, Lagoon and Lift Station projects will benefit the City of Melville for many years to come.
Councilor Andrew Rondeau was impressed with how administration was able to keep the tax increase so low, “considering the projects and the forward-looking position we’re putting ourselves in as a City is abolutely massive savings in the long run.”
“If we wait and if we defer and we delay on these projects – we saw it with other ones we’ve done – they only get more expensive.” Rondeau added.
“We’re getting a lot done, we’ve had a lot done in the last few years here, and it’s stuff that will put into the future in the next 30-40 years.” said Councilor Vince Thiessen.
Bruce told council that completing these projects is crucial to the success of Melville, and prepares them for the day when regional services becomes more of the norm.
The 2023 Capital and Operating Budget is broken into 3 parts, which can be access below.
