We approved the 2013 budget at 1/14 Council.  Cause for celebration is twofold:  it is a responsible budget including a 2% property tax increase and it is a record to pass it so early.  By achieving the latter Staff are now able to most efficiently implement their 2013 projects which means we will realize best value of our dollars.

The budget report on the 1/14 Council agenda included some very good news:  assessment growth in King is greater than had been assumed for the draft budget presented in December.  Specifically, there is an additional $168,805 in revenue available for 2013.  In the report Finance recommended that this revenue be allocated to the infrastructure reserve fund.

As I wrote in my earlier post, I had been thinking that we should be adding additional $85,000-170,000 to the reserves and had been intending to bring forth a motion for such at our 1/14 Council meeting.  Given the news on assessment and the recommendation to divert the extra to reserves I did not put forward a motion suggesting an increase in the property tax in order to add more to the infrastructure reserve.

I also wrote in my earlier post that I was uncomfortable with the budget allocation for Parks, Recreation & Culture as I felt that we were not enabling that Department to deliver the expected service.  Although I continue to have concerns I will be not be pushing to increase the budget as I believe more work needs to be done to assess opportunities for re-engineering the work processes to be more efficient;  if indeed more funding is required we will need to address and make some tough choices then.  But, in the interim we will not be raising property taxes without solid justification.

In summary:

• For 2013 there is an increase of 3.42% (blended 1.94%) which would be an increase of $125 on the average residential property.You can read the budget here.
  
• In total we are adding $611.8 thousand to our infrastructure reserves in 2013.  As we are consuming our infrastructure at a rate of $4.7 million/year this “feels” like the right thing; I look forward to receiving a recommendation from Finance on a reserve strategy later this year so that I have more than “a feeling” to guide my decisions.
• Township Staff is to be commended for their drive to spend our tax dollars efficiently:  the base operating budget actually reduces tax supported expenditures from 2012 levels.  The budget increase relates to service improvements and the sustainability of our infrastructure such as our roads, bridges and culverts.