On May 10, the Town of Virden Council presented its 2023 Financial Plan at a Public Hearing in the Council Chambers.
Deputy Mayor Marc Savy, Chair of the Planning & Finance Committee, presided over the hearing. He expressed appreciation to Town staff, including Chief Administrative Officer (CAO) Rhonda Stewart and Chief Financial Officer (CFO) Anna Maksymchuk, for time spent in preparing the financial plan and orienting the three councillors who were first elected last October to the process.
“It was a little bit over our head as new councillors until we got dancing with the CAO and CFO,” he said.
The budget is balanced, with revenue and expenditures of $16,173,869.67.
Savy explained that factors beyond the Town’s control have impacted the budget and the Town’s financial picture overall.
“We budgeted an additional $40,000 a year for fuel costs,” he said. He added that insurance premiums have gone up by an estimated 10 per cent and the federal carbon tax has hiked the cost of operating facilities with natural gas heat, such as Tundra Oil & Gas Place. Inflationary pressures, which have hiked the cost of most goods and services the Town purchases, are also factored in.
MILL RATE UP, ASSESSMENT DROPS
The general mill rate will increase by 1.038 mills. The Fort La Bosse School Division education tax mill rate will jump by .746 mills and the division’s portion of the education taxes collected by $167,124 or 12.5%.
MORE REVENUE
In her presentation, CAO Stewart noted that revenue from municipal taxes and grants in lieu of taxes is up by $207,859, or 4.47%. The Town has also budgeted for an increase in other revenue of $1,772,072.75, which is due to anticipated provincial and/or federal grants to go towards the expansion of the municipal airport. This work, brought about by federal regulatory changes, is expected to cost at least $3.2 million.
“Recent amendments by Transport Canada have changed the designation of Virden’s airport to restricted, which may limit the types of aircraft which are able to land here,” Stewart said. “We are actively pursuing funding to expand the airport and deal with these limits.” Existing hangars, for example, will need to be relocated due to their proximity to the runway.
Stewart said the first portion of the multi-phase project is likely to include surveying and engineering, any required sub-division costs and land acquisition. Other municipalities will be asked to contribute, and the timeline for completion will depend on funding received.
SPENDING UP
General government services spending will increase by $104,184. Plans for the money include grants to offset previous deficits incurred by the Virden & Area Handi-Van Committee and the acquisition of a new telephone system for the Civic Centre.
The Town is planning to augment the administrative staff with the newly created position of Assistant Chief Administrative Officer. In addition, recruitment efforts are ongoing to locate a new Economic Development Manager.
WORKS AND OPERATIONS
The current $491,000 annual budget for street maintenance such as asphalt patching, crack filling and dust control remains as is, while the amount to be devoted to snow removal has been increased by $26,000. Stewart said that approximately $48,000 was spent during this past winter on rental of an additional grader for street plowing and the hiring of trucks for snow hauling. A new grader, estimated to cost $475,000, and a new front-end loader, estimated at $210,000, have been ordered and are expected to be put into service later this year.
$160,000 is in the capital budget to cover the Town’s participation in a Federation of Canadian Municipalities (FCM) pilot project for the management of landfill leachate. The municipal solid waste cell at the disposal site will be expanded and additional fencing will be put in place at the soils facility.
CONSTRUCTION SEASON
Motorists will encounter some detours during the summer as paving work is carried out by Manitoba Transportation and Infrastructure (MTI) on King Street, Seventh Avenue and a portion of Thomas Drive. The Town’s share of the cost will be $325,000. The resurfacing of Thomas Drive from King Street to Government Road will be funded solely by the province. The new bridge on Seventh Avenue North, which is nearing completion, is estimated to come in at just over $841,000 and includes federal-provincial-municipal cost sharing.
WATER & SEWER UTILITIES
Income from the federal gas tax will be put towards new software and a reader for water meters, and the Town’s ongoing replacement program for meters, fire hydrants and manholes will continue. Stewart said that the Town is currently in the midst of a water rate study, as required by the Public Utilities Board, and has applied for financial assistance from the Manitoba Water Services Board for the replacement of antiquated meters.
Introduction of the new water source in 2021 has resulted in a decrease in treatment plant operating costs due to fewer pre-filters and chemicals being required. Stewart said the plant’s hydro usage has also dropped as not all the incoming water needs to be run through the reverse osmosis treatment system.
CAPITAL BUDGET BORROWING
Projects to be financed by borrowing this year include the extension of municipal sewer services into the industrial park ($650,000), the resurfacing of Routledge Street ($550,000) as well as the paving of Fifth Avenue from Lyons Street to the first entrance to Tundra Oil & Gas Place ($500,000). As of January 1, the Town had debt issued and authorized of $944,089.97, which leaves $4,850,727.93 in remaining borrowing capacity.
DOWNTOWN REVITALIZATION
As was the case in 2022, Council has placed $150,000 in the budget for the initial phase of downtown revitalization, which includes $25,000 to go towards the second year of the storefront improvement grant program.
“We want to encourage business owners to get things fixed,” Savy said. “Once all the streets have been done and paved, then we can figure out more stuff. We’ve had people asking us all sorts of questions, such as why can’t we fix the Scott Block clock – great idea. There’s a bunch of stuff we are looking at. We need an Economic Development Officer… we need to hire more staff.”
OTHER HIGHLIGHTS
$1 million has been budgeted for the Town’s share of renovations to Wallace District Fire Department Station 1. Plans also call for the washrooms in Victoria Park to be upgraded ($100,000) and new ones to be installed on the recreation grounds near the spray park ($75,000). The area around the spray park will also be fenced and landscaped. The tennis courts in Victoria Park will be resurfaced ($55,000).
Recreation items include the resurfacing of the tennis courts in Victoria Park ($55,000), as well as the acquisition of a power ice edger ($8,000) and a new score clock ($200,000) for Tundra Oil & Gas Place.
QUESTION AND ANSWER
Virden ratepayer Terry Johnson asked about the status of the Town’s bill from the federal government for RCMP salary costs as negotiated in their collective agreement as well as the price of outfitting officers with body cameras.
“AMM (Association of Manitoba Municipalities) and FCM are lobbying on our behalf, asking why we (municipalities) should be paying it,” Savy told Johnson. “We as a Council feel we shouldn’t be paying this. We’re going as far as we can to not pay it, but in the end if we do have to pay it it’s going to cost $107,000 plus $3,000 per RCMP member for the body cameras. We’re not saying we don’t want them to have body cameras because it is an officer safety thing, we just don’t think we should be paying for it.”
Johnson, a resident of Essex Street, also asked about asphalt deterioration on Ninth Avenue as a result of traffic being diverted from Seventh Avenue North while the bridge is being constructed.
“Once we get back to our normal driving patterns, we’re probably going to have to re-adjust where streets are (on the reconstruction list),” replied Mayor Tina Williams. “That road may have had enough damage that it is going to have to be moved higher up.”
At the conclusion of the hearing, Council gave first reading to the Financial Plan By-Law and first and second reading to the Tax Levy By-Law.
