INNISFAIL – After tackling a budget deliberation process considered the most challenging ever, Innisfail town council has approved the municipality’s 2025 operating budget of $28,532,772 and capital budget of $21,249,219.
By doing so at council’s regular meeting on Dec. 9, there will also be a second franchise fee increase, and another lowering of the tax rate increase to 2.82 per cent for residential and non-residential property owners.
In her report to council, Erica Vickers, director of corporate services for the Town of Innisfail, noted the 2025 estimated tax assessments for the town have projected a total assessment of $1,317,996,250, which is a total increase of 6.716 per cent.
She noted a tax requirement of $10,387,737 needs to be generated by municipal taxes in 2025.
Before budget deliberations even began last month it was initially projected that a tax increase of up to 6.53 per cent would be required to continue an acceptable level of essential services.
Noting the challenging fiscal landscape, the town and council also considered it imperative that preparations be made for the future through an eight-year reserve investment plan to increase reserves to ensure the municipality has enough funding to upgrade critically important infrastructure, like roads, water and sewer lines.
The town also brought forward an ambitious capital projects plan, one that will be relying on reserves, debentures and grants.
To get this all done in the face of all the challenges, administration and members of town council rolled up their sleeves and dug in and by Nov. 22, the last day of deliberations, made $213,250 worth of savings.
They also agreed to increase the FortisAlberta franchise fee increase by one per cent.
The result was the lowering of the projected tax increase to a 3.06 per cent, less than half of what was once feared.
And on Dec. 9 council agreed to increase the ATCO Gas franchise fee by one per cent.
Innisfail’s residential and non-residential property owners will now see a 2025 tax rate increase of 2.82 per cent.
“There was really good discussion, and I think it just reflects the preparedness that everybody had going into this budget and I think we've landed in the best place that we can considering everything that we're faced with,” said mayor Jean Barclay.
“The town still faces a challenge in keeping pace with the increased costs of doing business,” added Barclay. “Despite this, council has worked hard to keep our increases in line with the costs incurred by the organization.
“We realize the impact increased costs have on our residents, and we have fought to keep increases to an absolute minimum.”
Following the 2025 budget deliberation process administration advised council that $25,000 was still needed to be cut to balance the budget.
A motion was carried by council on Dec. 2 to reduce the operating budget by $25,000 rather than “imposing” an ATCO Gas franchise fee.
The potential areas identified for budget cuts to reduce the operating budget by $25,000 included:
• tree planting $25,000;
• sponsorships $5,000;
• Christmas party $5,000;
• doctors’ baskets $2,000;
• fireworks $10,000;
• Placemaking Operating Project $20,000;
• Town Voice – half page $20,000.
But on Dec. 9 council did not want to go this route.
Council once again wanted to find a way to make the tax burden for residents more equitable, noting there are about 75 local properties that are exempt from taxes, including schools, Autumn Grove and the Innisfail Health Centre.
“I think it makes it a little bit more equitable, and a one per cent ATCO franchise fee for the average residential house is approximately 50 cents per month,” said Barclay.
The average FortisAlberta user, based on 650 kilowatt hours per month, will see a monthly increase of about $1.26.
Vickers told the Albertan the average residential user of ATCO Gas will see an increase of 50 cents per month with the one per cent franchise increase.
“As to the $25,000, who would want to be the guy that whacks the fire fireworks or the Christmas party, or any of that stuff?’’’ asked Coun. Jason Heistad to the rest of council on Dec. 9. “We don't want to be doing that unless somebody does but it doesn't look too good. Yeah, Merry Christmas. And then what? No party next year?”
Council unanimously approved another motion to turn to the increased ATCO Gas fee instead of more cuts.
What all of this means to the average Innisfail property owner whose property is assessed at $400,000 is that they will see a monthly increase of about $30.68, based on the following:
• utility bill based on 10 cubic metre per month;
• 6.7 per cent assessment growth;
• 2.82 per cent tax rate increase;
• one per cent FortisAlberta franchise fee increase;
• one per cent ATCO franchise fee increase.
In the meantime, Vickers said she has been advised the provincial budget will be released in February of 2025, and that the educational tax requirement will then be sent out shortly after.
Vickers said the 2025 Property Tax Bylaw will come before town council in April of 2025, with a goal of presenting it on April 14.
