Property taxes are going up in Davidson, by about 6 per cent, to cover increasing costs.

“The cost of everything is going up,” town administrator Gary Edom said.

Council approved the Town of Davidson’s $2.1 million operating budget earlier this spring.

The budget is balanced by transferring $72,500 from reserves to bring down total expenditures from $2,170,354 to $2,098,161.

The 2012 budget covers costs of projects currently underway such as approximately $85,000 worth of upgrades to the town hall that included new windows, doors, wiring and the installation of a backup generator. The town had planned installing air conditioning as well, however, the project is on hold. Edom said they will apply to the Community Initiatives Fund for a grant in the fall to help with the $40,000 price tag.

The budget included costs of upgrading the town water well north of Davidson, work that has been going on this spring and included cleaning the well and installing a bigger pump and motor to match those on the other well.

Other expenses in the 2012 budget included costs of digging a new garbage pit in January.

The town has transferred $35,000 from its surplus funds account into reserves to be used towards the future purchase of a fire truck.

The mild winter last year allowed the town to save some money in snow removal costs, which were about $10,000 less than the $18,000 budgeted for the expense. The lack of snow helped the town save the expense of hiring contractors to assist with snow removal.

Besides the 6 per cent increase in property taxes, residents can expect a 10 per cent increase in water rates once the proposed increase is approved by the local government committee of the Saskatchewan Municipal Board.

This year the town plans to earn $905,500 from property taxes, compared to $833,821 it raised by the municipal levy last year. The town makes up the rest of its revenue from federal and provincial operating grants amounting to $377,278, fees and charges of about $418,000 and utility charges of $299,000.