Spaniard’s Bay budget reflects town’s growth

By Mark Squibb

Spaniard’s Bay council approved a balanced budget of $2.8 million earlier this month that saw a decrease of 0.5 mils to the property mil rate but increases to some other taxes and fees.
Council decreased the property mil rate from 6.5 to 6 mils, while setting the minimum property tax at $480.
“The 2024 municipal assessment has experienced property value increases in excess of 10 percent, making this reduction necessary,” said Deputy Mayor Tammy Oliver. “The decrease in the annual mil rate along with additional properties added, will still net an increase of tax revenue of approximately $53,000.”
Council held the business tax steady at 10. 5 mils.
“Business tax revenue is increased by $8,900, due to increases in values, and with the addition of a couple new tenants, office space rental at the municipal centre has increased by $25,000,” said Oliver.
Water and sewer rates, meanwhile, were increased by $40 to $400 per unit.
“The cost associated with materials, acquisition, parts, and supplies, necessitate this change, resulting in an increased water and sewer revenue of approximately $57,000,” said the deputy mayor.
Oliver said that property taxes, business tax, and water and sewer taxes, represent an increase of some $113,000 in tax revenues, and that high interest rates will net the Town an additional $37,000 in miscellaneous income. That income, however, will be offset by higher borrowing costs.
Some other taxes saw slight increases as well.
The water and sewer tax on vacant properties has gone up $20 to a rate of $200, while the commercial water and sewer rate increased $40 to a new rate of $400. The water and sewer rate for schools went up by $1.50 to $16.50.
Most other taxes and fees remained the same.
Total local revenues increased by $176,079 over Budget 2023. The Town also expects to get some $130,100 in gas tax money.
Oliver noted council required a transfer of $100,000 from the previous year’s surplus to balance the 2024 budget.
Oliver then switched gears to focusing on the Town’s expenses.
Council renumeration is budgeted at $50,000, while the administration budget is increased by $16,977 due to increased wages and costs of services.
Council also budgeted $44,100 for fire protection — $6,800 less than last year. However, the Town has agreed to replace a 23-year-old pumper truck. The new vehicle has been tendered and is in production. The Town expects to take ownership of the vehicle late this year.
Council and the fire department will make applications for funding once the department has established its 2024 priorities.
Council has budgeted $47,300 for animal control, which is cost-shared with the towns of Clarke’s Beach and North River, who contribute $10,920 each.
The Town has also agreed to partake in a regional enforcement project which includes the towns of Bay Roberts, Harbour Grace, and North River. If the project is approved, the cost to Spaniard’s Bay is expected to be $24,960.
Fleet operations and maintenance is budgeted at $98,460, while transport is budgeted at $201,200 — some $10,200 higher than last year.
Oliver said the most notable increase was an additional $10,000 for asphalt repairs to more closely reflect the results from previous years.
Snow removal is budgeted at $177,830, an increase of $7,000 from last year.
“The largest contributing factor to this increase is that the cost of salt has steadily seen price increases year-over-year, and we were unable to find a local supplier of the sand,” said Oliver.
Water and sewer work has been budgeted at $332,700, an increase of $42,500 from 2023.
“The most significant increase in this category is for miscellaneous repairs, or leaks, at $15,000 more than last year and pump repairs and replacement being $20,000 over last years’ budget,” said Oliver. “2023 was an extremely difficult year with numerous leaks and, unfortunately, we expect this trend to continue in 2024.”
Garbage collection and disposal has been budgeted at $321,000, just about $3,100 higher than last year.
Council has budgeted $5,000 for museum repairs and $5,000 for work at the boat launch slipway.
Some $81,300 has been earmarked for recreation, an increase of $12,400.
Oliver said reasons for the increase included a $3,000 commitment for a family civic event and a $5,000 commitment towards replacing the ballfield bleachers. Summer job wages are also up.
Debt charges for the Town’s portion of capital works projects, including the Rectory Avenue and Casey’s Lane road reconstruction and paving project, which has been approved and will be tendered in the spring, tally $382,902.
Council has also budgeted $8,000 to improve signage at the Town’s entrances and $7,000 for planter boxes and flower pots throughout the community.
Council is assigning $25,000 to begin the process of creating a secondary access to Valley Road from Cranes Road between Bread and Cheese Cove Pond and Neddie Smith’s Pond.
Oliver said the process will take several years, and the goal is to both provide better fire protection and a route to one day provide sewer services in the areas.
Council has also budgeted $50,000 to continue installing water and sewer along the first half-kilometre for Big Pond Road, as well as $27,000 to review how it can address the issue of increased sewer flows in the west, particularly along Back Cove. Council has budgeted $15,440, some $14,000 of which has been provided by provincial government through a special assistance grant, to review issues with freezing at the water supply intake.
Council is also spending $3,000 on camera upgrades to try quelling illegal dumping.
The Town has seen bank fees increase by $3,000, which Oliver said is a result of an increase in the number of people using online banking to pay their bills.
Council approved the 2024 budget and tax rates unanimously.
Mayor Paul Brazil applauded Town Manager Tony Ryan on his work preparing the budget.