Kensington tables draft budget as fiscal year closes

Kensington staff recommended no increase in property tax rates for 2020/2021, as town council presented its draft financial plan at its Feb. 24 committee meeting.

The draft budget shows the town will finish the 2020/2021 fiscal year with a consolidated deficit of $76,824.00.

The proposed deficit will be mostly incurred by the Water and Pollution Control Corporation, which is projected to finish the year in the red by $62,009.

"The rates haven't been able to keep up to the costs," said Mayor Rowan Caseley, adding there are many essential upgrades scheduled.

The fire department has also requested new equipment that put the draft plan into a deficit of $18,296.

Caseley said the town and the department are discussing a rate change that will hopefully eliminate next year's deficit and help the town get ahead of forecast equipment costs in the coming years.

On the plus side, town operations will eke out a $77 surplus, as will the Credit Union Centre at $3,404 in the black.

“Every effort is being made by staff and council to hold the line on property taxes and to offset increases in expenditures by gaining efficiency or growth in revenues,” said Kensington’s chief administrative officer (CAO) Geoff Baker.

A small increase in water and sewer charges was effective on Jan. 1, 2020, as approved by IRAC in 2015. Rates are now under review by staff to plan for the next five years.

In keeping with the province’s new Municipal Government Act, the financial plan includes an operating budget, a capital budget and a five-year capital plan.

BUDGETING FOR THE NEW FISCAL YEAR

Some new items on the 2018/2019 general government operating budget will be carried over to 2020/2021, including a $1,000 scholarship for a Kensington Intermediate High School (KISH) graduate.

Another student-related budget item is $4,000 in honorariums for the crosswalk monitors who staff the street between Queen Elizabeth Elementary School and KISH.

Years ago, student volunteers were handling the crosswalk duties, but it was decided that was no longer appropriate, said Baker.

Without the students, crosswalk duties fell to town staff. Eventually, the crosswalk was taking them away from other work, so the town put out a call for volunteers.

The volunteer crosswalk monitors earn a $10 honorarium for each shift.

Savings were found in town administrative offices as well.

Kensington town offices are home to a small group of employees who conduct criminal record checks for a B.C. consultant called Backcheck. This arrangement is referred to as “sale of service” on budget documents and brings in around $450,000 each fiscal year.

Through they work under the umbrella of the police department, staffing for the group does not take away from the town’s police services.

The “sale of service” group used to be managed by Kensington’s Police Chief and took a portion of the chief’s time, but that will change in 2020/2021.

The team will be managed by Kensington’s deputy administrator, Wendy MacKinnon.

The budget will be tabled for adoption at the March 9 council meeting. Also to be decided are commercial and noncommercial property tax rates, the establishment of operating lines of credit and designation of signing authorities.