Merritt Herald - April 24, 2014

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MERRITT HERALD THURSDAY, APRIL 24, 2014 • MERRITT NEWSPAPERS

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Five-year financial plan gets first 3 readings By Michael Potestio the herald

reporter@merrittherald.com

JUMP BALL Collettville Elementary student Haley Zabek goes for the jump ball against her Bench Elementary opponent at the school district’s Grade 6 and 7 basketball championship tournament earlier this month. Diamond Vale would prove to be the victors in the tournament, with both the girls’ and the boys’ Cougar teams going undefeated. For more details, turn to today’s Herald Sports on page 21. Ian Webster/Herald

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City council unanimously approved the first three readings of Merritt’s fiveyear financial plan bylaw, establishing the city’s financial plan for 2014 to 2018, at its regular council meeting Tuesday. Council also unanimously approved the first three readings of the bylaw to set the 2014 tax rates. The bylaws will come back to council for adoption on May 13. As expected, there will be a two per cent increase across all seven property classes. The average house in Merritt is worth $216,395 and will cost $2,083.54 in general taxes this year before the Home Owner Grant. The 2014 tax rate increase will generate another $130,000 to city revenues, financial services manager Ken Ostraat told council. Total tax revenues collected by the city for 2014 will be $8.2 million, about $6.8 million of which will come from general property taxes, he said. Merritt’s property classes will bring in about $6.6 million of that. The due date for property tax payments this year will be July 2 at 4:30 p.m. The 2014 budget is about $20 million, which is comprised of a combined $13.5 million operating budget for all city departments and a capital budget of $6.5 million, Ostraat told council. This year’s municipal budget is a balanced one, Ostraat told the Herald. He said each city department was required to cut $200,000 from its budget and $500,000 was taken out of reserve funds. “We take some money out of our reserves basically to cover off some of the costs of our capital program that we have for this year and future years,” Ostraat said. The city will collect $116,500 for

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transit purposes, which is about the same as it did in 2013. One project council identified as a priority for the 2014 budget is the Asphalt Rehabilitation Program, which will cost about $1.2 million. The program is being combined with water and sewerline replacements to total just over $3 million from capital works to help fix established infrastructure, Ostraat told council. The projects are being combined in order to take advantage of the economies of scale of having a larger project and reducing duplicate work that would come with repaving a road prior to fixing a water or sewerline. “We’re going to do a full restoration as far as the roads are concerned, do whatever waterline and sewerline replacements have to be done on that particular section of road and then that basically rehabilitates all the infrastructure on that particular section,” Ostraat said. Other capital projects in this year’s budget outlined by Ostraat at the council meeting were the fire department’s capital project, which involves borrowing $1 million for a new fire engine and development of a new truck bay, and expansion of the public works building. This capital project is in the midst of an alternative approval process, and to date hasn’t received a single signature in opposition to the borrowing of the needed funds, Ostraat said. The deadline to sign that petition is April 28. Ostraat said the estimated cost of the new fire engine is pegged at $571,000, which could change depending on fluctuations in the Canadian dollar exchange rate with the U.S. greenback. The city has also set aside $50,000 to upgrade the lighting, windows, painting and metal facia of the firehall, Ostraat said.

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