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Baie Verte council ratifies Budget 2018

Baie Verte Mayor Brandon Philpott
Baie Verte Mayor Brandon Philpott - Submitted

Balanced at just over $1.8 million

BAIE VERTE, NL - There will be no tax increase for Baie Verte residents and business owners in 2018 as the town's budget rises to just over $1.8 million.

The overall budget represents about a $68,000 increase over last year, despite a significant reduction in the town's debt. The residential and commercial mil rates remained at 8.5.

Much of that increase can be attributed to recreational investment and an increase in spending to the fire department.

Mayor Brandon Philpott said council approved $50,000 toward operating and maintenance costs of acquiring the former Baie Verte High School building, which the town is proposing as the site of a new community centre, town hall, library and other amenities.

Council also budgeted $35,000 in the event a recreational director - possibly a regional position - is hired in the upcoming year, and $10,000 for maintenance and continued enhancements of its parks, playgrounds and other recreational facilities.

An additional $25,000 has been budgeted for the stadium in 2018.

The mayor said it is time to invest in preventative maintenance and upkeep for recreational facilities as opposed to reactive spending.

Investment in fire protection for Baie Verte has increased about $15,000. It is a way for council to show its support to the fire department, which the mayor noted does a lot of fundraising for its equipment and other necessities.

"If somebody is volunteering their time, they should at least be properly equipped for what they are doing," Philpott said. "... It is the same for all of our volunteers. A town should be supporting our volunteers as much as possible."

The mayor said the town had a number of debt items come off the books after 2017.

The debt ratio has decreased from five per cent to three per cent.

"We have an exceptionally low rate compared to most of the province," he said of the debt ratio.

It has been frustrating for the town being unable to acquire any capital works funding in recent years. With its current debt ratio, the mayor said they are in a better position to undertake some projects.

While the town is in desperate need of road repairs, Philpott said the current council does not want to only consider those projects under capital works funding.

"We want to attract young families, to make it a destination for families," he said. "Council has been trying to decide on things that will help make the town more enticing to those young families."

Meanwhile, council recently approved itself a raise - something the previous council had considered, but deferred until the budgetary process.

Last year, the total council remuneration was $15,680. It will now increase to $19,200.

The mayor said the raise was justified since it has been at least 10 years since it was previously increased

While considered a volunteer position, he said remuneration helps offset the long hours he expects from a dedicated group. He also hopes it will serve as a small incentive to increase the level of interest from future candidates.

"Here in Baie Verte, the remuneration was so low that it wasn't even covering their property tax - depending on where you lived here," he said.

Philpott said it was a difficult and time-consuming budget to deliver in terms of the steep learning curve for the new council members.

He sat on the policy and finance committee previously, so personally had experience with the budget process.


Baie Verte Budget 2018



Remuneration and travel: $24,000

General Administration

Salaries:: $220,000

Employee Benefits: $50,000

Payroll burden: $20,768

Travel: $2,500

Supplies: $28,500

Purchased services: $12,250

Professional services: $20,000

Insurance: $90,000

Total: $444,018

Property assessment services: $22,707

Professional development and training: $8,000

Public relations: $10,000

Common Services: $18,000

General Government total: $508,725

Protective Services

Fire protection: $71,500

Emergency preparedness and response:: $2,000

Animal and pest control: $500

Municipal enforcement: $1,000

Other: $1,500

Protective Services total: $76,500

Transportation services

Vehicle fleet and maintenance: $50,000

Streets, roads, sidewalks:$120,000

Snow removal: $100,000

Street lighting: $50,000

Other: $20,000

Transport total: $340,000

Environment Health

Water supply: $150,000

Sewage collection and disposal:$40,000

Garbage and waste collection and disposal: $100,000

Environment Health total: $290,000

Planning and Development

Planning and zoning: $3,000

Community improvement and development: $50,000

Regional development: $3,000

Tourism and marketing: $2,000

Planning and development total: $58,000

Recreation and Cultural Services

Recreation and community centres: $50,000

Parks, playgrounds, etc.: $10,000

Stadium: $135,000

Pool: $35,000

Cultural facilities: $1,000

Recreation and cultural programs: $5,000

Recreation and Cultural Services total: $271,000

Fiscal Services

Debt charges

Municipal annual payment: $45,540

Provincial annual payment: $10,544

Discounts, losses, allowances: $45,000

Other: $90,469

Capital expenditure out of revenue: $90,469

Federal gas tax:$65,137

Transfers to authorized reserves and other total: $202,606

Fiscal Services total: $261,690

Total expenditures: $1,805,915


Residential property: $499,366

Commercial/non-residential: $118,104

Total property tax: $617,471

Residential water and sewage total: $223,530

Commercial/non-residential water and sewage: $108,056

Water and sewer tax total: $331,586

Other taxes

Poll tax: $24,250

Business tax: $357,002

Utility tax: $156,338

Other taxes total: $537,591

Taxes and related Revenue total: $1,486,648

Sales of Goods and Services

Garbage collection: $7,200

Recreation and cultural services: $75,000

Tipping fees: $5,400

Sales of good and services total: $87,600

Government Transfers

Provincial grants and subsidies

Municipal operating grant: $127,656

Provincial portion of debt charges: $10,544

Provincial gas tax: $23,330

Provincial grants and subsidies total: $161,530

Federal grants and subsidies

Federal gas tax: $65,137

Government Transfers total: $226,667

Total Revenue: $1,805,915

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