HomeMy WebLinkAboutTR-95-81 -��
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Report t0 the Chairman and Members of the 8gD8rDl Purpose and Administration Committee
meeting held N0Y80b8r 23, 108I.
Report Number: TR-05-81
S 1981 Surplus and General Municipal Mill Rate Calculation
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ReC000eDddti0D;
It i3 respectfully r8C000eDd8d that this report be received for information and di3CUS3i0O.
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Background and C0N0SDt:
In preparing the 198I budget an dSSU0Dt10O of 1981 surplus of $75,000.00 was 00d8.
CD]CUlDt10D of the 1981 General Municipal mill rate was then made in the following manner:
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1981 Total Budgeted Expenditures $14,042,872
LESS: 1981 School and Region L8Yi8S
1081 Budgeted General Municipal
EXD8OditUr8S 6,176,803
LESS: 1081 Estimated Surplus (75,000)
Estimated Supplementary TDX8S /28,000\
Local Improvement Charges 22,100
Tile Drainage DSheDtUr83 25,775
Business Improvement Area (31,000
Shoreline ASSiStDOC8 Debentures /1,840\
! All0oDtf0D fO I081 Telephone Q8V8DUSS /77,887\
Allocation of 1981 Grants-in-Lieu /310,400\
Unconditional Grants /325,000\
3p8Cif1C Grants /1,533,500\
Area Rates
A0OUDt to be raised for 1981 General
Municipal Purposes
/2
15\
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Assessment Used for Taxation
85% of Total Residential Assessment = Residential Assessment for Taxation
$30,641,500 x 85% _ $26,045,275
100% of Total Business and Commercial Assessment = Business and Commercial Assessment
for Taxation
$ 7,710,097 x 100% _ $ 7,710,097
Assessment used for Mill Rate
Calculation $33,755,372
Mill Rate Calculation
Amount to be raised x 1000 = Commercial and Business
Assessment for Mill Rate Mill Rate
Calculation
$ 3,238,315 x 1000 = 95.93 Mills Commercial/Business
33,755,372
Commerical/Business Mill Rate x 85% = Residential Mill Rate
95.93 mills x 85% = 81.54 mills Residential
Proof of Calculation
Residential $30,641 ,500 x 81.54 mills = $2,498,508
Commercial/Business
$ 7,710,097 x 95.93 mills = 739,630
Amounts to be raised for 1981 General Municipal
Purposes $3,328,138
There is a slight difference in the amount to be raised ($3,238,315) and the amount
actually raised by the mill rate ($3,238,138) because of the rounding of the mill rates
to two decimal places.
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Therefore, through this calculation it can be seen that the $75,000.00 (estimated
1981 surplus) was used to reduce the 1981 General Municipal mill rate. Unless the
$75,000.00 can be identified in a contingency or other specific account(s) within the
General Municipal portion of the budget, then the assumption must be made that;
1. the $6,176,803.00 was required for budgeted Municipal operations in
1981; and
2. the $75,000.00 was used to reduce this levy on the taxpayers.
Specific consideration was not given to the spending of the estimated surplus because
it was used to reduce the Municipal levy in general , and not allocated to a specific
use.
The actual 1981 General Municipal Surplus was $14,637.00; $60,363.00 below the estimate
of $75,000.00. Therefore, if all budgeted,` 1981 General Municipal expenditures are made
and the budgeted 1981 General Municipal revenues remain at the anticipated level , the
operating deficit would be $60,363.00 due to under taxation of the ratepayers .
Respectfully submitted,
Kathryn Campbell , C.A. B.Com.
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Treasurer
17 11 81
R81-AS-1
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