Council dips into reserves to balance the books

By Ken Johnston
Editor

For the first time in several years the Town of Rainy River will not be undergoing any major construction projects.
Finance Chairman Brent Anderson said Monday, "This will be the first year of normal expenditures in about five years." He added that about $5 million was spent over the past several years on capital projects that needed to be done.
Monday evening council passed its 2011 budget that sees an average 4.3% increase to the taxpayers. It also sees council dip into the community's reserves that were at about $540,000 and now sit at $290,000. The approved budget sees $172,270 taken from reserves.
Anderson said that it is hoped that council will eventually be able to replace those funds.
Mayor Deb Ewald said, "We were lucky to have something to fall back on. Many communities took out large loans."
Without the stated actions the town general was facing a $339,571 deficit in 2010.
Other departments, including Waterworks, Sewer and Cemetery all had deficits at the end of 2010 as well. They were $125,786.25, $32,096 and $5,325 respectively.
Anderson said that there will be no more deficit after this year. Through increases in revenues, leaner operations and use of reserves they plan to achieve that goal.
"I am very pleased with the budgeting by council this year. It is a very lean budget," said Anderson.
Council also raised the water and sewer bills by $9.