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HomeMy WebLinkAboutTR-95-81 -�� . . _ '7�'/ ~— 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 ----------------------------------------------------------------------------------------- ReC000eDddti0D; It i3 respectfully r8C000eDd8d that this report be received for information and di3CUS3i0O. _________________________________________________________________________________________ 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: ' 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\ i V/ ! V/` � TR-95-81 - 2 - 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. . , , ./3 TR-95-81 - 3 - 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. > Treasurer 17 11 81 R81-AS-1 r