(File photo/northeastNOW staff)

By Ben Tompkins

Tax Increase

City of Humboldt releases proposed 2023 budget

Dec 1, 2022 | 5:21 PM

Humboldt residents can expect a 5.1 per cent increase in their property taxes in 2023.

The city released its 2023 proposed budget and barring any changes, citizens and the community will have to deal with the effects of inflation.

“The consumer price index is sitting at 6.8 to 7 per cent, and although not all of those factors weigh into the municipal budget, certainly the cost of fuel the cost of utilities, wages, all are going to be trying to keep pace with the rate of inflation or are setting the rate of inflation at that or higher,” said city manager Joe Day.

“That does mean that as a municipality, we have to increase our rates and fees and taxes as well, in order to cover the costs that we incur.”

The budget currently includes over $18 million in revenues, and roughly $13.9 million in operating expenses, which leaves just over $4 million available for principal payments and reserve contributions.

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As of right now, the city believes they are about $383,810 short when calculating their estimated expenses.

This shortfall is a significant factor in the rationale for the recommended 5.1% tax increase which will generate approximately $381,290.

According to Day, their biggest concern is always their reinvestment in capital replacements, which this year would be their water main replacement program and their roadway replacement program.

While originally optimistic for 2023 and the possibility of expanding those programs, they may just have to be happy with maintaining a similar pace with the last few years.

“It’s not that we’re cutting much out of the budget, we’re just not able to add any more projects than just kind of maintaining the status quo from previous years,” explained Day.

Continuation of the five-year operating budget projections and five-year capital plans with revenue has also increased and is currently projected at approximately 1.5 per cent annually.

In a statement by the city, they said “the process of ‘long-term’ sustainability is more of a focus and if Capital spending exceeds any one year’s operational surplus there is a plan to repay the reserves over time.

The proposed budget will be presented to the city’s council, this coming Monday (Dec. 5), with deliberations beginning at 9:45 a.m.

Community members will have the ability to live stream the discussions, on the city’s website.

“We know that council has been working diligently to keep the tax rate increase below the rate of inflation and at the same or below that of many of our peers/other cities. We’re expecting council to review the whole budget and try and find where there could be savings, however, they also may find that maybe we’ve trimmed back too far in certain areas, and they want to expand some spending in certain areas,” Day said.

The budget does not include the reallocation of any funds allocated to 2022 projects that will not be deemed complete by the 2022 year-end.

Any project that was initially approved for the 2022 budget that did not proceed is now unlikely to proceed at all, and will contribute to a potential year-end variance and Council will advise as to where to direct those funds subsequent to the 2022 year-end.

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Ben.Tompkins@pattisonmedia.com

On Twitter @BenTompkins_8