The Town of Penhold council passed its 2014 operating and capital budget of $8,734,884 with a tentative zero per cent municipal tax increase.
ìThis budget is a result of the good work we did last budget meeting,î said Mayor Dennis Cooper. ìAny increase will depend upon the land assessment growth rate of two per cent and the education requests usually made in April or May.î
Based on assessment values increasing in 2014, the effective tax increase will be in the range of two per cent, without the provincial education requisition amount not accounted for. Richard Binnendyk, the town's chief administrative officer, noted that an increase over last year's education request was built into the budget to help buffer the process.
While the budget was passed on Jan. 13 as presented, it was noted that there has been no funds set aside for capital equipment and structure replacement and a review is underway for municipal utilities such as water, sewer, and garbage collection to become revenue neutral.
Two large ticket items were not included in the budget pending further information based on the tender process. Both the Highway 42 intersection upgrade and the proposed water plant are going to tender stage in 2014 and council will issue direction once the process is underway.
The cost of the Highway 42 intersection will range from $400,000 up to $1.2 million depending on the final recommendations and the water plant comes in at $775,000. The Town of Penhold received a $400,000 grant as part of the intersection earlier this year. Final funding for both projects has not been finalized to date.
During the meeting council also approved a five per cent increase for using the Memorial Hall as a means to bring the facility closer to revenue neutral status.
Council members also approved the new Palisades subdivision street names: Hutton Place, and Harrison Close, based on historic families in the Penhold area. The name Palisades Boulevard was rejected for the main access into the Palisades development, and Robinson Avenue chosen in its place.
Robinson Avenue will continue into the new subdivision. Street names are required by ATCO and Fortis to plan and install utilities in new developments.
