Clarenville's Budget 2015

Clarenville’s Budget 2015

Chair of Finance, Councilor Heber Smith rose in Council’s December 16^th meeting as presented Clarenville’s proposed budget for 2015.    The balanced budget laid out plans for the projected collection and expenditure of $9,757,074 in 2015.  Budgets are easy in times of growth because as the tax base grows, so do tax revenues.  Such is not so much the case in Clarenville this year.  Growth has slowed and revenue growth has not been able to keep up with the demands of operating the town.

Planned Investments in 2015

• A further $1million in Road Improvement – in addition to the $700,000 spent in 2014
• Road and water/sewer redevelopment of Adam’s Place, Blundon Drive, Warricks Road, Park/Viking Streets, and the east entrance to Clarenville on Memorial Drive  
•  New firefighting and communications equipment for the Clarenville Fire Department
•  Increased honorariums for the volunteer fire department
•  New front-end Loader and additional plow operator position
•  New Sidewalk Snowblower
•  New in-town directional signage
•  Increased investment in summer tourism planning and development
•  Playground equipment and enhancement
•  Emergency backup generator for water booster station
•  Geographic information system to better manage and maintain assets, land use and development
• Design work for a planned expansion of the Shoal Harbour River Water Treatment Plant

Where Clarenville plans to get its money and use its money (in Thousands)
Revenue	2015	2015	2014	2014	2013	2013
Residential Property Tax	3,040.00	31%	2,870.00	30%	2,680.00	30%
Commercial Property Tax	920.00	9%	870.00	9%	840.00	9%
Business tax	1,880.00	19%	1,823.00	19%	1,780.00	20%
Water and Sewer	1,635.00	17%	1,582.00	17%	1,540.00	17%
Contribution to Debt Servicing	876.80	9%	876.80	9%	877.00	10%
Other Revenue	154.40	2%	191.50	2%	196.00	2%
Recreation Revenue	506.50	5%	507.50	5%	498.00	6%
Poll Tax revenue	260.00	3%	273.00	3%	260.00	3%
Gas Tax Revenue (Federal)	251.20	3%	226.24	2%	226.00	2%
Operating Grant (Provincial )	233.20	2%	233.26	2%	145.00	2%
Total Planned Revenue	9,757.10		9,453.30		9,042.00
Year-over-Year Increase	3%		5%
Expenditures	2015	2015	2014	2014	2013	2013
General Administration	1,291.00	13%	1,350.00	14%	1,176.00	13%
Fire and Protective Services	314.30	3%	296.70	3%	277.00	3%
Transportation Services	2,300.50	24%	2,108.00	22%	1,953.00	22%
Environmental Health	1,285.80	13%	1,234.30	13%	1,200.00	13%
Planning and Development	178.10	2%	145.10	2%	148.40	2%
Recreation & Cultural Services	1,007.20	10%	1,094.80	12%	1,014.00	11%
Fiscal Services	3,380.20	35%	3,224.24	34%	3,272.60	36%
Total Planned Spending	9,757.10		9,453.14		9,041.00
Year-over-Year Increase	3%		5%

The 2015 budget represents just over a 3% increase from last year and points to slowing growth in the Clarenville economy.   Housing starts are the biggest single contributor to taxes and tax growth in our town and that growth has slowed significantly in 2014 with the total value of residential construction dropping from $21 million in 2013 to just over $9.5 million in 2014.   

New Revenue

To address the increase in expenditures, revenue needs to go up.   This is being accomplished with a relatively small 0.25 mil increase to both residential and commercial property tax.  

Example Taxes for a typical $200,000 property 

Residential Tax	Assume a 200,000 property
2014 tax @ 6.5 mil	$                    1,300.00	tax assessed
2015 tax @ 6.75 mil	$                    1,350.00	tax assessed

Moving Forward

Moving into 2015, the Town will be continuing its review of spending through its departments.