By Mark Squibb/December 30, 2022
The Town of Witless Bay has passed a budget for 2023, and though council’s proceedings are nearly as mysterious and secretive as those of the Vatican, with little being said about the document during its public meeting, finance committee chairman Alex Troake, did answer some questions about it afterwards.
It took yet another special meeting of council, however, for the group to pass the budget last Thursday.
Troake went through the $4.7 million spending and taxation plan in about two minutes.
“Essentially we’ve been able to find revenue to offset all the increased expenses from the existing budget, and we will not see an increase in the residential mil rate, and in fact, the minimum will decrease from $550 to $400, which will double the number of people paying the minimum,” said Troake told his colleagues.
He later confirmed via e-mail that this was a reference to the minimum residential tax rate. He also noted this this puts Witless Bay’s residential tax rate on par with Bay Bulls while the commercial tax rate remains lower than its neighbour’s — 10 mils against the 14.75 rate charged by Bay Bulls.
During the meeting, Troake noted that personal care homes will be taxed at a general rate, an increase from 7 mils to 8.3 mils, and that registered day cares will be taxed at the same standard.
Troake said seasonal businesses, which actually had not appeared in the 2022 tax structure, will increase from 5 mils to 6.5 mils.
He said that as property values have decreased, residents may see a slight decrease in their residential taxes.
Troake also said there’s money to proceed with upgrades to the Town Hall, recreational facilities, and roads, and council will proceed with construction of a new fire hall.
The actual dollar amount of the budget was not mentioned during the public meeting.
When contacted by the Irish Loop Post, Troake said the budget is balanced at $4.7 million.
Some $2.2 million of that is money borrowed by the provincial and federal governments and transferred to the Town as their portion towards the cost of capital works projects. If you take those funds out, the Town’s actual operating budget is closer to about $2.5 million.
Meanwhile, Troake further clarified the change to the Town’s tax structure involving childcare and seasonal businesses.
“All businesses in the community are taxed,” said Troake. “Before the “Regulated Child Care Services” (8.3 mils) was created, the “General Commercial” (12.5 mils) would be applied. We felt it was important to create this new category so that businesses focused on youth are not taxed more than businesses focused on seniors in the “Licensed Personal Care Homes” category (8.3 mils). The rate of 8.3 mils was decided upon so that it is two-thirds of the “General Commercial” rate, rounded one decimal place.”
The budget document has since been uploaded to the Town’s website, should residents wish to have a gander.
As per the budget, the Town’s largest expense is fiscal services, including just over $3 million in capital expenditures (including, said Troake, $2,998,142 related to the new regional fire hall project) and $137,000 in payments on debt charges for the fire truck and new fire hall. The next largest expense is administration, budgeted at $450,320. Some $206,612 of that is for staff salaries. The rest will go to professional services, insurance, maintenance, and engineering services.
Council has reserved $5,000 for its own remuneration, and a further $7,500 for travel. It has also earmarked $2,865 for public relations.
Council projects it will collect about $1.28 million in residential and business taxes and $201,035 in fire protection service fees.
