2010, while a comparable OPP force would cost around $3 million. Local policing could be a luxury Dryden can no longer afford.
And taxes will have to go up even more to fix the financial mess.
In 2003, in a move to hold down rising tax increases as industrial taxes from its local mill fell, council began taking more money out of the telephone utility than it earned in profits. Plugging the paper dividend in the books balanced the yearly budget and made things look fine, but only on paper. In reality Nike Metcon Discount the city was spending money it didn have, and never would.
Dryden residential taxes have soared in the past decade. A median valued home that Nike Metcon Repper Dsx
Despite hiking taxes by over 75 per cent since then, it continued to spend as it always had, financing the spending with non existent dividends from the phone company and other borrowings, along with over estimating revenues to balance the yearly books and carrying the inevitable shortfall forward into the next year books.
You don spend money you don have, is a financial truism that has been voiced in many ways over the centuries from the likes of Greek philosopher Socrates on his death bed urging that his debts be settled, to Ben Franklin advice that it is better to skip a meal and go to bed hungry than awake in debt.
City officials have laid the blame for the financial crisis at the feet of the city failed venture into the regional cellular telephone business that began in 2007. While that a big factor in the current fiscal cash crunch, the city problems go back further.
paid $1,200 in municipal taxes in 2002, was taxed at $2,050 this year.
How much of this debt will be written off or retired as part of the two sales hasn been said, but $4.5 million can possibly cover the amounts owed and a debt consolidation loan will likely be needed. A public meeting Sept. 27 is supposed to disclose more information on the telephone sales to city residents.
Fiscal chickens come home to roost in Dryden
Yet Dryden council has done just that for the past decade, borrowing money internally and externally to the point where Dryden Mayor Craig Nuttall said the banks have told council is Nike Kyrie 3 Samurai On Feet
With just $160,000 left in available cash reserves and an annual budget running in the red, the city is basically broke.
It couldn continue, and it hasn Fallout from behind the scenes in fighting over the city financial situation has included the resignations of two members of council since January and the abrupt departure last month of Dryden long time chief financial officer.
While about a third of the debt is related to the local share of a new sewage plant and related projects, and those payments come out of utility user fees, it leaves about $20 million owed for general purposes that has accrued over the years. The annual interest and principal payments for that debt roughly $2.4 million a year have to come from general revenues, mainly taxes.
So far Dryden council opted to dole out the bad news to its citizens and taxpayers in small doses. First confirming in the spring the telecom utilities were in trouble, now that they for sale, and that service and tax cuts are coming.
Nuttall was quite blunt in pointing out that in order to get the city back on financial track the overall debt needs to be reduced so payments amount to no more than $600,000 a year.
The loss of $1 million in telephone dividends, and roughly $400,000 in interest on owed dividend payments, even though they were just book entries, must be covered off with cuts in spending, or more tax revenue. Replacing $1.4 million in lost revenue would take a 12.75 per cent tax hike.
Like a self inflicted Ponzi scheme it had come to an end the borrowing bill has come due.
Even this year, knowing the dire straits the phone business was in, the 2012 budget took a $1 million dividend on paper, along with making overly optimistic estimates for other revenues like court fines and land sales.
Last week the city took the first steps in doing that.
In 2010, even though there was little likelihood they receive one, council plugged a $1.5 million one time provincial assistance grant into the budget to balance the figures.
And despite service and staff cuts, a significant tax hike can be ruled out next year.
DMTS, the local telephone company with its landlines and internet business, is being sold to competitor Bell for $4.5 million, and Dryden Mobility is being dismantled with its customer base going to TBayTel for an as yet undisclosed sum.
enough. the city owes over $35 million and spends over $4.5 million in payments on that debt.
How the other assets will be disposed of primarily a network of 16 towers and related equipment wasn said, although TBayTel said it will lease at least one tower, and possibly another.
The two utilities have a combined debt of over $30 million. Dryden Mobility has $11 million outstanding on a city guaranteed provincial infrastructure loan for the cell towers and related equipment and owes DMTS over $10 million for cash advanced over the past four years for equipment and to cover the cellular company operating losses of $8.3 million not including this year where the utility lost a further $1.3 million in the first six months of the year. DMTS in turn owes the city over $10 million for unpaid dividends and accrued interest.
Debt tops $30 million
While he not said so, Dryden municipal police force could also be on the block. The 20 officer force cost the city $4 million in Nike Lebron 12 Low Dove Grey/Blue Graphite/Wolf Grey/White
What those cuts will be wasn said specifically, but they come on the heels of a wage and staffing freeze instituted as part of this year budget and could include mothballing one of the city ice surfaces and some of its playing fields, said Nuttall
In addition to the utility sales, Dryden also gave citizens a heads up last week that staff and service cuts are coming as further budget balancing measures.
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