Kentville budget back to the drawing board

BY JENNIFER HOEGG

jhoegg@kentvilleadvertiser.ca

NovaNewsNow.com

Minutes after voting down a proposed deed transfer tax July 15, Kentville council had to face the consequences of its decision.

Confronted with a significant tax rate increase in lieu of the deed transfer, council defeated the proposed 2009-2010 budget and delayed setting a new tax rate until July 21 at the earliest.

Presenting a budget proposal more than three months in the making, CAO Keith Robicheau said, “given your vote on the deed transfer tax bylaw, we are presenting this budget recommending a seven cent (per $100 of assessed value) property tax increase for your consideration.”

Council backed down on the tax rate spike and sent the budget back to staff in the hope of finding further savings. “I believe we do need to go back and get another look,” councillor Nola Folker-Hill said.

At a June 16 public meeting about the proposed deed transfer tax, it was stated the town had to find an additional $200,000 in revenue to balance the budget. If the 1.5 per cent deed transfer tax were introduced, only a two-cent per $100 of assessed value tax rate increase would be necessary. Without the new tax, a seven-cent hike would be required to maintain current services.

Tentative alternatives

A number of tentative alternatives to the seven-cent increase were put forward by councillors.

Bill Boyd said, “a number of residents who have spoken to me suggested there is a third option; maybe we have to cut expenditures.”

Eric Bolland added, “there may be some projects that can be put on hold for 12 months.”

Tony Bentley urged his colleagues to reconvene quickly to discuss budget changes, warning, “this is going to linger and linger and linger.”

As council wrestled with setting a date to discuss budget changes, Robicheau pointed out that urgency is needed. “To keep to the schedule for the next tax billing, we are pressing the limits now.”

Finance director Debra Crowell told council September tax bills need to be printed early in August.

Running out of time

In a phone interview, Mayor David Corkum said, “we’re running out of time. “We’re back to the drawing board,” he added. “A seven cent increase to residential property doesn’t appear to be acceptable to council. The only other option is to see where cuts can be made to lower that tax rate increase.”

Corkum said council and staff could look at cuts to grants, delaying projects or cutting services. Cutting staffing would be “a last resort,” he added.

Kentville’s current tax rate is $1.23 residential and $3.02 commercial per $100 of assessed value. Staff had proposed an increase to $1.30 for residential properties and $3.09 for businesses.

Council will hold a special meeting, open to the public, Tuesday, July 21 at 9:30 a.m. to reconsider the budget. A vote may or may not be held at that time.