YORKTON - Yorkton Councillor Chris Wyatt was looking to define what the City’s 2022 budget would look like when he made a motion at the regular meeting of Council Monday.
The motion, which stated the 2022 budget be set at a zero per cent increase to the Operating Budget and a one per cent increase in spending to the capital budget, would end up being withdrawn, but not before extensive discussion, and an alternate motion being made.
Wyatt said he was putting forward the motion because “last year there was some uncertainty what Council was willing to do,” and his motion was to clearly define things early in the process.
With regards to zero on the operating side he said he wanted to see “one more year of tightening the belt.”
In seconding the motion, Coun. Quinn Haider said the motion would provide some time to plan to hit the targets.
However, Haider also had a concern in terms of negotiations which have been ongoing at the federal level in terms of a new contract with the RCMP, and what that might end up costing the City.
In that regard the news is not good, said Ashley Stradeski, Director of Finance, with the city.
In a letter outlining some preliminary numbers it appears the City will face an increased cost of $1.6 million for RCMP in 2022.
“That’s kind of a big number,” said Stradeski.
“This is very concerning when we get these things beyond our control,” added City Manager Lonnie Kaal.
About $1 million of that is retro-pay, going back five years which will be paid out over four quarterly payments. The remaining $600,000 will be an annual cost.
Kaal said there have been calls from the municipal sector, such as the Federation of Canadian Municipalities, to have the federal government cover the retro-pay, but to-date there is no indication that will happen.
Coun. Randy Goulden said the operational costs for the RCMP may even climb higher, noting the side arms they carry are coming to the end of their lifespan and replacement costs would be the responsibility of the municipality.
There is also talk each officer should be wearing a body cam, and the cost of the cameras and associated software and data storage would also be the municipality’s.
“We know these things are coming, but have no idea what the costs are,” she said.
With such major costs still unknown Goulden said she was “very reluctant to support the motion in front of us.”
Goulden reasoned there was a need for more information before determining tax levels for next year.
A major revenue source will be impacted in 2022 as well, with the provincial transfer based on provincial sales tax about to decline 4.3 per cent or $160,000, noted Kaal.
“We’re in a tight spot,” she said.
It was also realized Wyatt’s motion might be treading on one put forward by Coun. Dustin Brears in April, which led Coun. Darcy Zaharia to suggest a motion that would align better with Brears, and had Wyatt withdrawing his initial motion.
At the regular meeting of Yorkton Council April 26, Brears made a motion calling for the City to investigate a three-year plan.
In making his initial motion Brears broke down each year’s increase over capital and operating, with capital receiving the lion’s share, roughly five per cent, over the three years.
If the increases were not enough on the operating side Brears said there would need to be a decrease in expenditures, but without cutting programs or services.
The matter was approved to have Administration prepare the impact having a three-year tax plan might have, but that report has not yet gone before Council.
Zaharia’s motion again called for zero on the operating side, but a three per cent increase to capital to align with Brears’ earlier motion.
But, the debate continued, including Goulden having concerns.
“We’re setting a budget without seeing any numbers, I have concerns,” she said.
But Wyatt was still willing to move forward on a zero per cent operating increase in 2022.
“You will have to cut services to get to zero,” suggested Kaal.
That said Kaal also noted Administration well-understood the desire of Council to see a budget presented with an increase to operating at zero, or as close as possible, adding Council gets to make the final decisions even after Administration presents a budget for considerations.
Ultimately, Council defeated Zaharia’s motion five-to-two, leaving Brears’ motion as the guideline for Administration as it begins work on the 2022 budget.
