SBAB Blog.

Budget Notes

At the SBAB meeting on the 7th, Mayor Karen Sorensen discussed several Town of Banff budget items, at the meeting Karen agreed we could post the notes on the blog, and these follow:-

As discussed at Small Business Association of Banff Meeting December 7, 2010
BUDGET NOTES (Prepared by Mayor Karen Sorensen):

• The Town’s administration creates the initial budget from a $0.00 base and builds the budget from there, based on services required as approved by Council in the draft 2010 Services Review.
• After the Financial Plan was approved by Council, confirming an Alberta rate of inflation of 1.2% and setting that as a cap to the draft budget, administration reduced expenditures to match a max 1.2% tax increase. After further unknown expenditures came up – WCB, RCMP as examples - the budget is cut further to maintain the 1.2% Alberta rate of inflation cap, as directed by Council.
• The RCMP budget has increased by 250,000 this year – this expenditure alone is greater than a 1.2% increase. (A 1% tax increase equates to 197,000.00 )
• The first draft of the Operating Budget was presented to Council on Nov. 29 showing a tax increase of 1.2%.
• Also in this budget is an additional 1.1% (over the 1.2%) for regional transit – a new service, that we believe industry favours.
• Council uses the Financial Plan, the Service Review and the Resident Satisfaction Survey to determine the budget they eventually approve.

In the draft version of the Resident Satisfaction Survey – 450 people responded

• Quality of Service – 87% said good to very good.
• Value for tax dollars paid – of those who pay taxes – 68% say they receive good to very good value for their tax dollars.
• In order to maintain or expand services the majority say to increase taxes by Alberta rate of inflation (33%) or adopt new user fees (38% )
• In order to reduce taxes TOB should cut services 6%
• In order to maintain taxes TOB should cut services 5%

• Wage freeze 2009 - Hiring freeze 2010 - Hiring freeze continues in 2011.
• Currently, in budget deliberations, Council is at a total 2.7% increase including RCMP, transit, and a few other new initiatives.
• Taxes will be reduced by 3.1% and waste collection will be moved to a utility.
• Wages and Benefits have made up a high of 44% and a low of 36% of the total operating expenditures over the last 10 years. There has been a general decline in this percentage since 2004. 2011 is at 38% in the draft budget thus far.
• From taxes and utility revenues Wages and Benefits represent a high of 48% and a low of 40%. In 2010 41% (2nd lowest) and 2011 42% (3rd lowest over past decade)
• Of all of the TOB revenues we receive, taxes represent a high of 56% and a low of 47%. In 2011 our 48% of TOB revenues will come from taxes. This number has been declining since 2005. Taxes are forming a reduced amount of our revenues.