Mayor’s Remarks
Budget 2011-2012 & Tax Rate
Town of New Glasgow Council Meeting
June 20, 2011
The Town of New Glasgow is increasing its residential tax rate from $1.80 per $100 assessment to $1.82 per $100 assessment for the 2011-2012 fiscal year. This is a 1.1% increase and translates into an $11 per year increase for the average home in New Glasgow. After careful deliberation and analysis, Council deemed it necessary to increase the rate by 1.1 % and also made a $500,000 cut from the initial budget expenses proposed. We are continuing to source ways for all Town departments and operations to run more cost efficiently, while still maintaining strong municipal services. I believe, as do our councillors and our citizens, that it is the quality of these services, which plays a lead role in our town’s quality of life, such that our town is a community in which families may flourish and thrive and that we must continue to be an appealing place that attracts newcomers, visitors and investors to New Glasgow.
Even with this increase in our residential tax, this rate is the same as the rate of six years ago, which was also at $1.82. The provincial cap on residential assessments continues to negatively impact municipal revenues and for the Town of New Glasgow, this cap has resulted in reduced revenue of $789,343 for fiscal 2011-2012. It is unfortunate that the cap program is not working as intended and is not equitable for all homeowners.
The 1.1% increase in the residential tax rate came as the result of a very thorough budget analysis as well as budget reductions in all Town operations. Council has taken a strong business approach to its operations and is committed to continually improving our best practices. Today’s global economy, even with recovery in progress, still dictates we must all be willing to do business smarter and in different ways.
The commercial tax rate will increase from $4.15 to $4.40 per $100 assessment, which represents a 6% increase. New Glasgow is the leading commercial service centre of northern Nova Scotia, a role of which we are very proud. We are servicing a regional population of 47,000 on a daily basis and a wider catchment of 100,000 on a regular basis. This volume of traffic requires significant infrastructure maintenance and investment in order to provide a good level of service as a thriving commercial centre.
The phase out of the Business Occupancy Tax creates a single transparent commercial tax that is the basis for generating the commercial tax revenue necessary to provide strong municipal infrastructure and services for our business base. The phase out of the Business Occupancy Tax has been implemented to simplify the tax structure and is not intended for the purpose of decreasing taxes.
New Glasgow continues to see development and progress. The ongoing infrastructure and development projects taking place in our Town are reflective of the commitment by this Council to improve services and move forward towards a brighter future. Council is committed to working with private sector investors and developers to provide a climate that supports business as well as service levels and infrastructure that stimulate economic growth for our region. We have just completed two very significant infrastructure projects with the East River Road and MacLean Street initiatives. The Town partnered as one of three orders of government to improve our community through these important projects. The MacLean Street project removed storm water from our sewer system and has added new infrastructure that will help reduce incidents of flooding within the downtown. The East River Road project replaced water lines from the 1800s and provided significant changes for the East River Road business corridor, one of the busiest thoroughfares in our town. This has improved the safety and efficiency of the entry and exit points from our regional hospital and many businesses.
These projects have added strength to our overall infrastructure which was boosted the previous year by the Downtown Revitalization project. It has changed the streetscapes of our Downtown core and has given new vitality to the Downtown. The New Glasgow Farmers Market, located along our riverfront, is bursting with vitality and has become a regional destination area for both locals and visitors alike. We have continued to see solid commercial investment, development activity and residential developments underway.
We are now moving forward with Phase 2 of the Downtown Revitalization project and have submitted funding applications to both the provincial and federal governments for their consideration.
The Town’s sewer rate will increase from $3.61 per 1000 gallons to $3.70 per 1000 gallons. This increase will mean a payment of $9.00 more annually for the average household. This increase is needed to continue investment in our storm water and sewer infrastructure, such that we are in a position to maintain the current level of service as well as to facilitate future development. The extreme weather of recent years has placed strains on our sewer and storm water separation systems such that we need to continue to upgrade in preparation for the climate change that we are now experiencing on a more regular basis. If we do not invest in our infrastructure at this time, the costs would be far greater and far more unmanageable in the long term.
For the fiscal year 2011-2012, the Town of New Glasgow will operate on a budget of $16,681,549.
The majority of budget demands can be attributed to the following factors:
I would like to conclude by emphasizing the Town of New Glasgow’s commitment to regional cooperation and growth through our support for projects such as the Pictou County Wellness Centre, which has a sustainable financial model which will not impact our general municipal tax rate. The Town has also made a commitment and financial support for other regional facilities such as the indoor William M. Sobey Soccer Complex and the new Pioneer Athletics Field. The Town of New Glasgow is also part of the commitment made by six municipalities together with the provincial government regarding expansions to the emergency and pharmacy services for the Aberdeen Hospital operated by the Pictou County Health Authority.
Town Council has had to make very tough decisions and this budget proved to be a challenge. There will continue to be immense challenges in the days ahead and we will work hard to provide an environment for growth while keeping service levels strong and our tax rates reasonable.
I extend my sincere appreciation to all members of Council for their commitment to the stewardship of our Town. I also want to thank our CAO Lisa MacDonald for her operational leadership in these challenging times as well as her expertise. My appreciation goes out to all Department Heads for providing financial accountability, professionalism, transparency, and for managing budgets that will support progress for the Town in a fiscally responsible manner.