INNISFAIL – Town council has passed a “progressive” municipal budget for 2020 that calls for a zero per cent property tax increase for next year and charts a three-year course to navigate through expected financial challenges.
The 2020 operating budget was set at $21,984,784, while the capital budget was approved at $4,559,294, along with $98,240 for contingency, at council’s Dec. 9 regular meeting.
Council’s decision to hold the line on property tax increases will mean most citizens will see little to no change on their property tax bills, although some assessment value changes could result in increases, and in some cases decreases.
Whatever the case, getting to the point of a zero per cent tax increase scenario, while maintaining most service levels and moving forward on important capital projects, proved to be a challenging task for both administration and council.
“It was difficult. We had to draw the line on some priorities with some cutbacks on (provincial) MSI and grants, but we didn’t feel it was an appropriate time to increase taxes either to accommodate additional capital projects,” said Mayor Jim Romane.
Heather Whymark, the town’s director of corporate services who presented the finalized budget to council, said the difficult economy made it necessary to bring in a “progressive”
budget to prepare the town for how it can best meet anticipated financial challenges. These challenges include current zero to minimal growth of property assessment values, and belt-tightening measures, particularly annual infrastructure grant funding, recently introduced by the provincial government.
“I was laying the groundwork of what’s to come in the next three years,” said Whymark. “We know the funding is going to be different and we want to keep our level of service. We are going to keep what we are doing and this is what we are going to have to do in the next three years to get there.”
To achieve desired budget goals the process also saw council and administration wrestle with the difficult decision to suspend staff merit pay boosts for 2020, a potential expenditure of $52,000.
However, staff will receive a 1.9 per cent cost of living allowance increase (COLA), an expenditure of $89,000. Earlier in the fall town council agreed to a zero increase to both pay and COLA.
“It definitely wasn’t an issue of finance. I could have found it in the budget. That isn’t the direction I went,” said Whymark of the merit pay decision.
“Part of our due diligence is to acknowledge what is going on during these economic times, and to me it is the support of what is going on with the economy.
“I want our staff to be able to say they are also supporting what is going on with the economy and therefore the merit wasn’t required for this year,” she added.
In the meantime, local residents will see two small user fee rate hikes.
Water costs are rising an additional 20 cents, from $2.30 per cubic metre to $2.50, while wastewater user fees are increasing five cents, from 3.15 to 3.20 per cubic metre. Flat rates for both water and wastewater will remain the same at $10 per metered site.
Whymark said 15 out of the 20 cents collected from water bills in 2020 is going into the town’s water reserve as the town is looking at costly infrastructure replacement in the next few years. The current water reserve sits at $100,000, with an additional $60,000 collected this year to add to the reserve.
“It’s not a lot. It’s a start. That’s all 15 cents gives me,” she said.
The town is also creating a new storm water reserve account. Council approved the collection of $133,000 to get this new account started.
Household solid waste basic rates under the new automated waste collection system will also remain the same at $23 a month per site.
Meanwhile, the town has a huge capital improvement agenda planned for 2020, with the budget expense approved by council to move forward. Most of the cost of these projects will be funded with either provincial or federal grants.
The budget calls for $421,500 to build a pedestrian railway crossing with fencing, $1.2 million for surface improvements to 61st Avenue , $148,000 for repairs to 53rd Avenue Close and 38th Street, $370,000 for trail replacement at 52nd Avenue, $740,000 for infrastructure replacement on 38th Street, $200,000 to purchase a new gravel truck, $170,000 for gateway landscaping improvements, $290,000 for upgrades to the Innisfail Arena and $775,000 for improvements to the Innisfail Aquatic Centre.
Council agreed to move forward during budget deliberations on a revised $10,000 expense to partner with EQUS for the construction of an EV charging station, $55,000 for a Dodd’s Lake Recreation Area Plan, $25,000 for enhancement of the Town of Innisfail website, and an extra $20,000 to the Innisfail Public Library for additional operational expenses.
Once final assessment numbers are known by the town and provincial requisitions have been received, administration will bring the Tax Rate Bylaw to council for approval this spring.
