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Town releases operating budget of almost $6 million

Penhold Town Council voted to approve the 2011 operation and maintenance budget last Monday night but not without debate over a few final expenses.

Penhold Town Council voted to approve the 2011 operation and maintenance budget last Monday night but not without debate over a few final expenses.

During their regular meeting, council members discussed the use of $15,000 that was leftover after the completion of the budget.

Two options were discussed. The first being the construction of a gate that would secure the upstairs café in the Multiplex and allow it to remain open after hours, and the second being a pay increase for administration staff to put all staff onto the pay grid.

However, after council decided further discussion was needed before they committed to a use for the money, they passed a motion to approve the budget and put the $15,000 into the reserves.

The approved cost of the operating budget for 2011 totals $5,973,573.

This year’ s budget incorporates the first full year of operating costs for the Multiplex, which forced changes in some of the other departments such as parks and recreation.

The projected expenses for Multiplex development for the year are close to $900,000 with the projected revenue coming in at about $980,000, leaving a surplus of about $86,000.

However, the operation costs for the arena and the gymnasium are projected to produce deficits of close to $400,000 and $230,000, respectively.

Funding has decreased in some of the town’s departments including the Neighbourhood Place, which will receive about $40,000 less than it did last year.

The capital budget and the taxes for 2011 have yet to be determined but will be released sometime in May, said town officials.

“There are still a few unknowns. Before we set taxes we need to find out what the school requisition will be,” said Dennis Cooper, Penhold mayor.

“We almost have a balanced budged. If they raise the school requisition then we may need to increase taxes.”

Penhold CAO Rick Binnendyk said the capital projects this year are expected to be minimal with the new cost of operating the Multiplex. It will take at least a year for the town to fully know what the operating costs will be for the new facility but they said they feel a fairly accurate budget has been put forward at this point.

“Prior to building the facility we had done cost projections and did a budget review before we built it,” said Binnendyk.

“Are they perfectly accurate numbers? I would say no but that’s what a budget is - it is the closest estimate.”

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