Coming up $1.4 million short of a balanced budget, Mountain View County councillors voted last week to pass an interim 2012 budget this month and defer the final document until spring, when assessment numbers are known.Reeve Bruce Beattie made the recommendation, noting that administration had found about $630,000 in cost savingsñ almost two-thirds of it in wages and salaries ñ representing a 3.8 per cent cut in the $17-million net operating budget, and absorbed a three per cent cost-of-living increase for staff.ìFor me they've done a good job,î Beattie said during Wednesday's policies and priorities meeting. ìThey've come up with six per cent (in cost savings) as I do the math.îCorporate services director Greg Wiens had presented a scenario to balance the budget that included a one per cent increase in residential property taxes. Shaving about $100,000 off the operating deficit, that hike would come on top of a projected 2.4 per cent increase in education taxes.After two years of zero tax increases, Wiens had noted at the Monday budget meeting, Mountain View County now has the lowest residential tax rates based on year-to-year comparisons with similar municipalities.The balance of unfunded expenses could be covered by deleting an airport manager position worth $90,000 that councillors had already agreed should be cut, increasing the projected linear tax assessment ñ from two per cent to four per cent, which Wiens admitted was ì little more riskyî ñ and putting less funds into reserve accounts.ìWe're fortunate we're in a strong financial position, because we do have options,î Wiens said.The county could also draw from its gravel and rechipping reserves to offset budgeted increases of $191,000 and $410,000 respectively in those programs, he said, and another possible source to balance any shortfall from lower than projected assessment numbers was $500,000 earmarked for the tax rate stabilization reserve.Some councillors had asked on Monday that administration find more items to cut from the budget, but Wiens argued Wednesday that senior managers had identified ìa lack of strategic planning that drove this process.î While managers could suggest further cuts, he said, ìthere are implications to those cost savings. We need to have direction from council.îDiv. 1 Coun. Kevin Good, who alone voted in opposition to Beattie's recommendation to pass the interim budget, again on Wednesday said he felt a further five per cent in cuts could be achieved.Beattie, on the other hand, noted that a one per cent residential tax hike would be a far cry from the City of Calgary's six per cent.ìFor me that would be 20 bucks,î Beattie said. ìOn average per capita it would be $8. That's not a huge amount to ask when we know costs are going up across the board.îDiv. 6 Coun. Paddy Munro said he didn't agree with using $300,000 out of the $400,000 set aside for the bridges reserve, but was pleased that Wiens' balancing scenario would see no tax increases for farmland or commercial properties.ìI would certainly support passing an interim budget now and doing a final budget in the spring,î Munro said. ìI'm happy to see efficiencies improve,î he added. ìIf we have to raise (residential) taxes for cost of living, that's one thing ñ but if you could just take another careful look (for further cuts) Ö I don't think it's unreasonable. Give it a team try.îGood reminded Wiens that he had said managers could find further savings. ìI would like to see them so we could implement them,î he said. When Wiens reiterated that such cuts would have implications in reduced services, Good said: ìCouncil should have the opportunity to weigh that out.îCAO Tony Martens backed Wiens' position that administration needed a clear direction from council, pointing to Munro's suggestion Monday to reduce the county's chipseal program as an example of decisions that shouldn't be made on the fly during the budget process.ìThat's why it's critical to have that long-term strategic planning,î Martens said.Martens also noted that comparisons made by Good with oil companies ordering massive cuts were based on ìa direction from their board of directors that was iron-clad.îAsked by Div. 7 Coun. Al Kemmere whether there were downsides to waiting until spring to pass the final document, Wiens said there were no significant drawbacks, since projects included in the budget were expected to be approved on Dec. 7 and could go ahead as planned.ìIt's the attitude I'm worried about,î Good said, comparing the situation to people who earn $250,000 a year but can't keep on top of their debt.ìIf we want to get our incomes before we decide what we're gonna spend, we have that same wrong attitude in my opinion.îWhen Beattie recommended the interim budget be approved, Munro suggested a ìfriendly amendmentî to ask the CAO to come back with further cost savings. Beattie, however, said he would prefer to have council develop a strategic plan first and the amendment was not included in the recommendation.The interim budget, if ratified by council this week, will allow the county to continue on a ìbusiness-as-usual basis,î Wiens said Thursday.ìWhat it does is allow us to continue operations as they are now until we pass the 2012 budget,î he said. ìExisting support for recreational services and fire services is still there.îThe proposed interim budget will also include a complete list of projects recommended for approval at previous P&P meetings.Projects cut during the budget process included:ï Rge. Rd. 42 improvements to service the Shell Shantz Plant and Taylor Gas Plant, worth $1.8 when initially presented but scaled back to $1.26 million. Councillors instead decided to hold discussions with the two companies to see if they are willing to contribute to the cost.ï Upgrading Rge. Rd. 72A at Highway 584 in Bearberry, worth $350,000.ï A septic receiving station in Cremona for county residents, worth $300,000. Councillors decided to investigate other options on county-owned land.ï A master servicing study for Highway 2/27, worth $200,000.Projects that were recommended for approval but reduced in cost included road surfacing for the Waldren and Munro subdivisions, originally pegged at $200,000 (with the developers paying $13,000 and $4,000 respectively from securities provided to the county) but reduced to $65,000.And after much debate, P&P agreed to go ahead with reconstruction of Rge. Rd. 12 north of Highway 27 leading to the Olds Central Highlands Golf Club, but to spread the project over two years, with $800,000 budgeted for 2012 and $700,000 budgeted for 2013.Both Good and Munro had argued that the county should wait to see if development was approved on adjacent lands that are part of the Netook Crossing plan, so that the developer could pay for the upgrade, but the majority of councillors agreed that the road had waited long enough to get fixed.
