INNISFAIL - There will be a small tax increase for homeowners and business owners in 2019 as the town finally brings down a budget to keep inflationary costs under control.
It's the first time in five years local citizens and businesses will not see a zero per cent tax increase in the municipal budget.
"There is a tax increase coming. It is a one per cent, basically," said Heather Whymark, the town's corporate services director who presented the municipality's 2019 operating and capital budgets to town council at its Dec. 10 regular meeting. The operating budget for 2019 was set at $21,943,536, while the capital budget for next year is $5,814,021. The town has set aside $109,630 for its contingency fund.
Whymark said the budget's challenge for 2019 was to catch up on accumulating inflationary costs for across the board expenses the town has absorbed over the past four years but have not been "acknowledged" in the previous budgets.
"We know gas has gone up and all overall expenses but to date the budget has never incorporated that increase, so we absorbed that in our budget throughout the years," said Whymark. "We had brought in a zero per cent budget each year even if there was inflation.
"This budget brings us back into where we are acknowledging there has been inflation and keeping our maintenance levels at the same to maintain our services. That's what we had to do, finally do a tax increase to accommodate that," said Whymark.
While Whymark's report to council said the 2019 budget includes a projected tax increase, likely at just one per cent, it could be marginally higher -- up to 1.5 per cent, depending on final assessment values that will be determined in March. She said additional revenues are needed to cover a forecasted budget expense of $76,186.
"That is the money I need to balance my books," said Whymark.
Following Whymark's presentation, the 2019 budget was unanimously approved by town council.
"Council has done its best to keep it (taxes) to a minimum over the years but eventually that does catch up to you. You can't do that forever," said Mayor Jim Romane, adding council approved a "pretty aggressive" capital budget.
A big capital expense listed in the 2019 budget report is $952,000 for the new skatepark. Town officials are hoping half this cost will be covered by a provincial grant, with additional monies coming through local fundraising. While getting the provincial grant is not a certainty, Romane continues to say he has "no regrets" steering council towards an upscaled version.
"No regrets. I already had other communities say to me, 'Boy, that is the best thing you are doing.' They regret they haven't done that. Unfortunately they didn't go the extra mile. It's encouraging to hear that feedback," said Romane.
The other major capital expenses include $2,003,107 for reconstruction of 45th Avenue from 45th Street to 50th Street. Just over half of that expense is being covered by provincial grant monies.
Another $724,000 will be spent on the Lakewood Drive overlay, with the entire amount also covered by a provincial grant. The town is investing 144,000, also covered by provincial funding, for a trail replacement project near 42nd Street along the berm to 50th Street. An additional $63,584 will be spent on the second phase of the Wayfinding Signage project. That money is coming from operating and reserve accounts.
There is also another $190,000 going towards a washroom installation project at the Innisfail Aquatic Centre. These monies are coming out of the town's reserves. As well, the town is purchasing a new street sweeper at a cost of $350,000, which will be covered by monies in the operating and reserve accounts. The town is also investing $365,000, with most of it coming from provincial grants, for minor upgrades to the local Arena, aquatic centre and curling rink.
The budget has also incorporated a cost of living increase of two per cent for staff, and set aside monies for two new full-time positions, an RCMP municipal clerk and administrative assistant.
In the meantime, the town's reserves, which civic leaders have taken great pride in in the past, is forecasted to drop from $12,241,589 from the beginning of 2019 to a projected end of the year balance of $11,741,354. However, Romane believes the town is still in solid financial shape.
"I don't think there is a community in Alberta that wouldn't be envious of our financial situation," said Romane. "We are very fortunate. It sets up for things we are looking at in the future of the community in ways to continue to build."
He noted the town has invested $100,000 for a feasibility study into recreation, leisure and cultural services and amenities that will address the needs of the community, including what is lacking, such as a primary modern gathering place.
