(File Photo/northeastNOW Staff)

By Mat Barrett

Humboldt Budget

‘It’s absolutely fantastic’: Humboldt Council passes 2021 budget with 1.8 per-cent tax increase

Dec 9, 2020 | 10:05 AM

Humboldt City Council passed its 2021 operating and capital budget on Tuesday.

The administration submitted a budget that showed about a 1.77 per cent tax increase for the year, and after a minor addition to one cost centre, the increase was slightly bumped up to about 1.8 per-cent.

“We’re headed so far in the right direction, it’s absolutely fantastic,” said Mayor Michael Behiel.

The dispersion of that 1.8 per cent will be decided in early 2021.

The small change came as $5,000 was added in the operating section of the Recreation and Leisure services sector to help with ‘Urban Beautification’, mainly with Communities in Bloom.

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Behiel said adding the money to the budget affects the citizens’ pockets very minimally and is worth it in the long run.

“Communities in Bloom just doesn’t focus on flowers,” he said. “It focuses on the buildings, everything in the city to make it more appealing.”

Outside of that $5,000 add to the budget, things stayed relatively the same as council discussed each sector. However, with COVID-19 having an effect on the world, it could affect some of the revenue that comes in for the City of Humboldt. The area that drew the most discussion was the Curling Club who may not be able to bring as many funds in for the city as in the past.

Behiel said they are hoping to have a small positive variance at the end of the current fiscal year, which should help.

“That’s going to allow us a little bit extra leeway to deal with those shortfalls that are coming from places like the curling club and so forth,” he said.

An increase in taxes isn’t expected as a result of some of the COVID-19 shortfalls relating to revenue like that.

The 2021 budget also sees about $3.19 million dollars in capital projects and purchases for the City of Humboldt. It’s slightly down from the record of more than $4 million dollars in 2020, but Behiel said he’s very pleased that they’re able to keep the tax increase below the national average increase of cost of living, while still being able to put money into capital projects.

A couple of main projects to highlight in the ‘Recreation and Leisure Services’ department are some irrigation additions to a couple of parks in Humboldt, replacing the floor at Jubilee Hall, and upgrading some lighting in the Uniplex to LED. There are also plans to construct an ‘Outdoor Rink and Multi-Sport Court Facility’ that is going to be funded through the Municipal Economic Enhancement Program (MEEP).

On the Public Works and Utilities side, the city has plans to do the final paving portions of a number of water main replacement projects, and are looking to do a complete water main replacement from start to finish in 2021.

Another portion of the budget that drew some discussion from council was the revenue that’s coming from bylaw enforcement. Behiel said in the past years, the city has tried to take an ‘educational approach’ to hopefully deter bylaws from being broken. However, council is looking to that hopefully changing in the short term.

“Not that we want to penalize any of our citizens,” Behiel told northeastNOW. “But we want to at the same time promote compliance with the law.”

Behiel said they are hoping to possibly see a small spike for one year, leading to a bit of learning from the public, and also some revenue for the city.

There’s also a revenue stream that has been and will be affected by the COVID-19 pandemic. Grants coming from governments with things like revenue sharing total around $2 million dollars this year, which isn’t much concern according to Behiel. However, with the effect of the pandemic on businesses in the province, things like the PST may be reduced and will be seen in 2022. Behiel said with the budget being set prior to the election, the administration was able to not leave things in “chaos” if the newly elected council was filled with newer councilors.

Behiel thanked the residents for their patience during this year, and years past as they work to keep the tax increase low and balance spending.

“We recognize that it’s a trying time,” he said. “We’re trying to do what we can to not only keep those costs low but at the same time start paying back the citizens for all the years of sacrifice they’ve made while we try to get this corrected.”

The balanced budget totals just over $9 million dollars.

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mat.barrett@jpbg.ca

On Twitter: @matbarrett6