Town of Sackville to maintain tax rate for fifth year in a row

For the fifth straight year, Sackville residents won't be hit with a hike on their municipal tax bill.
Despite increased expenses projected over the next year in nearly every department within the town, Sackville's tax rate will be maintained at $1.535 per $100 of assessment, the same rate which was set back in 2004.
Treasurer Michael Beal explained the town is able to maintain its tax rate at the same level as the last five years because of an annual increase to the municipality's tax base. The tax base is made of new constructions, renovations, as well as a possible increase in assessed value of properties within the municipality.
"It went up 5.42 per cent this year overall, so that means about $386,000 in new dollars for the town," said Beal.
"This means that the only changes property owners will see on their 2009 tax bill will be those instituted through changes in assessed value of their properties," he added.
During a special council meeting held last Wednesday night, town council approved its $8.64 million general operating budget for the new year, up from $8.24 million last year, due to higher operating costs projected in 2009.
Policing costs will go up again in the new year, this time by another $53,000. A large chunk of that budget will go to salary increases for the 10 officers for the municipal detachment.
"In policing, we will be budgeting a rate per RCMP officer of $123,000 in 2008. This is up from $119,000 per officer in 2007," Beal explained in his report.
Public works will also face increased costs in 2009 due to rising gas and oil prices, as well as anticipated salary hikes.
Expenses are up in every other department as well because of an increase in salary and benefits for the staff.
One area in which the town will save money in 2009 will be on its garbage collection and disposal costs.
This is due to council's decision this year to eliminate apartment buildings from the garbage collection service, bringing with it a savings of about $20,000.
Beal said when work got under way on this year's budget, town staff were asked to be particularly frugal this year not only because of tough economic times but because council is hoping to get at least two major projects under way in 2009 - construction of a water tower and design work on the new police/fire station.
"We asked department heads to try and hold the line on any new expenses as much as possible," he said.
Mayor Pat Estabrooks said with the ever-increasing cost of gas, oil and power bills, staff had to consider their expenses carefully this year.
"I think they've done a great job in choosing where their money needs to be spent," she said.
Again in 2009, the town will be able to do the majority of its capital projects with capital-out-of-revenue funds.
"This maintains our direction of the years gone by where we work towards elimination of the town's debt," noted Beal.
The town initiated its debt reduction program a number of years ago, where funds are transferred every year from the operating budget to the capital-out-of-revenue fund, which now sits at over $975,000.
"This will allow us to do our 2009 general capital projects with no or minimal borrowing," Beal wrote. "Continuing to commit to putting more money into capital out of revenue over the next several years has put the town in a very positive position and gives us the ability to look at doing some of the large projects that are required to be done as well as keep an eye on our outstanding debt."
Sackville residents might also be pleased to know that their water and sewer rate will also be maintained at the same level as the past two years. Thanks to a slight decrease in operating expenses in the utility operating budget for 2009 - due to the elimination of the transfer to the capital reserve fund - the rates will remain the same as they were in 2007 and 2008.
Extra copies of the 2009 operating budget are available at the front desk of town hall.