The feared first big budget by the provincial NDP government on April 14 turned out not to be so scary after all for Innisfail.
Mayor Brian Spiller was not jumping for joy but it's a budget he says he can live with.
“I feel fine with this budget, yes,” said the mayor. “Innisfail is well positioned to withstand a budget like this. It is not a problem whatsoever.”
While the cost of the new carbon tax – projected to be about $500 annually for households when it comes in next year -- remains worrisome for all Albertans, Spiller and senior town officials were relieved critically important provincial MSI funding for major capital projects will not decrease. The provincial budget has set aside $6.1 million for MSI funding to municipalities for the next five years, which works out to $1.2 billion each year, the same as in 2015.
“With first impressions it looks like we are going to receive the same amount in MSI funding, which is our major funding we get from any level of government,” said Spiller.
But Penhold mayor Dennis Cooper pointed out the province promised last year it was going to increase MSI funding by $50 million, which did not happen.
“I was hoping to see a bit more MSI money in that way,” said Cooper, who was nevertheless pleased there were no MSI cuts. “They have a lot of money to transit and light rail, but that helps big cities. It doesn't help small communities.”
Innisfail will almost certainly receive the planned provincial funding it needs for the approved $1.6-million first phase expansion of town hall, and for its ambitious multi-million-dollar infrastructure program that is about to start at the old sewage treatment plant, as well as additional sewer and manhole relining it has planned.
Last Friday, the town also confirmed MSI funding for municipal operations will also stay in place. Last year, the town received $66,000 in MSI operational funding, which was distributed to various local groups, such as the Innisfail Royal Canadian Legion, the historical village and the tourism booth, to help with operational costs.
There is also good news for local property owners. Innisfailians are not likely to see any municipal tax increases when they receive their notices at the end of the month, other than those created by higher assessments. Town council voted in a zero per cent increase on municipal property taxes for 2016 late last year, and the April 14 provincial budget calls for no increase in school taxes. Town council will be asked to approve this year's Tax Bylaw on April 25, and local residents can expect to receive their full tax notices on or before April 29.
And for schools, the NDP's first big budget is promising stable funding for education, including fully funding enrolment growth, and while senior staff at Chinook's Edge School Division are still studying the details, the initial look at the provincial budget is a positive one.
“This budget will provide the resources to protect quality learning in the classroom, and it is supportive of our families and school communities,” said Kurt Sacher, the superintendent of schools. “There will be some areas where costs are increasing while the funding remains the same, and that will require our usual diligence to manoeuvre.
“We also still have significant needs in areas like transportation and inclusion, and hope that when new funds become available these areas will be addressed,” he added. “As well, there is some uncertainty around funding details for any salary settlement the government may negotiate, with teaching staff for example, and also around the impact of the new carbon tax on utility and fuel costs.”
In the meantime, Spiller and town officials are still not happy with the province for wiping out the provincewide $15-million grant in lieu of taxes for municipal social housing. Innisfail is set to lose about $50,000 the municipality needs for the taxes on 48 assisted living units at Dodds Lake Manor and Poplar Grove Court, as well as an additional 13 social housing duplex units scattered throughout the community.
“I don't think that is a fair way for one level of government to deal with another at all,” said Spiller.
Both Innisfail and Penhold have been hit with job losses due to the economic downturn and the budget announced initiatives to create jobs, including a cut in the small business corporate income tax rate by one third, from three to two per cent as of Jan. 1, 2017, as well as two new tax credits totalling $165 million for small and medium businesses.
“That's for people with money and if they want to invest in a business, they can get a tax credit. That gets money moving and gets people into starting new businesses,” said Cooper.
With files from Kristine Jean.
Mayor Brian Spiller
"I feel fine with this budget, yes. Innisfail is well positioned to withstand a budget like this. It is not a problem whatsoever."
