NEWS RELEASE
TOWN OF KAPUSKASING
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Kapuskasing Council has been working diligently in the past couple of months to prepare a balanced budget for 2017.
As part of the budget preparation exercise, staff have been working at presenting scenarios to decrease costs and maintain services without creating major impacts on operations and service delivery.
In order to balance the books, Council, under the recommendations of the Finance Committee, have made significant cost reductions in the 2017 budget exercise which include the following:
- Discontinuation of the Bearskin passenger air service subsidy;
- Reduction in airport operating hours with associated staff reductions;
- Reduction in Kapuskasing Economic Development Corporation funding and elimination of the Economic Development position;
- Cancellation of new capital projects;
- A 0 per cent salary increase for all non-union employees;
- Reduction of summer student positions from 27 to 17;
- Elimination of temporary employee positions at Public Works and Sports Palace;
- Evaluation of user fees, essential and non-essential services;
- Continuation of operational review of all municipal departments to identify efficiencies.
It is also to be noted that one of the contributors of the municipality’s financial position is the length of time in securing long-term financing for the Kapuskasing Energy projects which reflects on the current cash flow and financing options for other major projects.
Council and staff are continuously working on restructuring projects and its operation in order to maintain and reduce any impacts on the community while taking responsible measures to plan for the future.
The above cost cutting measures will help the municipality to reduce accumulated debts and work on rebuilding reserve funds for future projects as part of repositioning its vision.
At its meeting held April 17, 2017, Council approved the 2017 Capital and Operational Budgets with a 0 per cent Capital Levy increase and a 0 per cent Municipal Tax Levy.
Some residents may see an increase on their tax bill due to MPAC’s re-assessment which occurs every four years in addition to the effects from Tembec’s re-assessment over the last ten years which has reduced taxation revenue from $2.3 million down to approximately $884,000 in the large industrial class with last year alone representing a reduction of $506,000 in taxation revenue.
Council and the Finance Committee made its recommendation for 0% increases on the Capital Levy and Municipal Tax Levy based on the average increases that will be implemented with the assessment values and rates while considering the quality of life of its residents and businesses.
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