Residents can expect a two per cent tax increase next year, representing a $40 jump over 2012 to a homeowner with a property assessed at $300,000.
The 2013 municipal budget was approved unanimously directly following its public presentation at council Dec. 10, which was attended by one member of the public.
“The 2013 budget maintains service levels despite the growth in service demands,” said CAO Helen Dietz. “There were no big surprises.”
Additional capital projects above and beyond the downtown revitalization efforts contributed to the tax hike, Dietz said. The 2013 operating budget includes an increase of $1,483,432 over last year to $17,923,983.
A little less than 50 per cent of the $6,357,566 capital budget, a decrease of $305,644 from 2012, will go towards the second stint of downtown infrastructure upgrades.
“Phase 2 is projected to cost $2.8 million,” said Director of Planning and Development Craig Teal. “That will take care of the west side of the intersection at 49th (Avenue) and 50th (Street) to the west side of the intersection of 47th (Avenue) and 50th (Street).”
The project will enhance the accessibility of the area for pedestrians and breathe life into the town's core with landscape features while improving traffic flow, Teal said.
“We're dealing with five travel lanes across that cross-section and replacing some of our older water, sewer and sanitary and storm sewers in that area,” he said.
The area redevelopment plan for downtown will also spur closer cooperation between businesses while the town improves navigation signage, he said.
Residents will also face a $0.25 per cubic metre water rate increase, said Director of Corporate Services Heather Whymark.
“Any surplus in the water will go into the water/wastewater reserve,” she said, noting much of the budget deliberations surrounded utility rates. “An important item in the 2013 budget was how to address and prepare for the significant contribution to the South Red Deer Regional Water Commission.
“We had to establish a plan to meet $3-million expense by 2015.”
Administration compiled five different options to implement skyrocketing rates due to hooking up to the regional wastewater system and ultimately settled on the “2020 Plan.”
“Scenario 3 was a 20 cent increment with a stabilization fee, both commencing in 2013 and going to the year 2020,” she said.
This would initially lead to a $20 per month increase based on a 20-cubic metre usage.
Mayor Jim Romane said getting residents up to speed with the reality of rising costs will require a large communications effort on the part of the town.
“I think we're going to be faced with a definite education process that we want to take on here sooner rather than later with the explanation of our utility rates,” said Romane. “We're preparing for this big hit in 2015.
“We can build up some money in that reserve beforehand rather than being hit with a $100 increase or something in one fell swoop.”
The budget also provides for a new storm sewer along the west side of Highway 2A to alleviate drainage problems.
“The area has high groundwater levels and heavy rainfall events that overwhelm the ability of the existing ditch and pipes to handle the runoff,” said Dietz.
Full-time town employees will receive a 1.2 per cent cost of living increase and are also eligible for yearly performance-based increases.
Next year tennis courts will be resurfaced, sound improvements will be made to the Innisfail Library/Learning Centre, and the arena will receive an ice plant upgrade, among other projects.
The budget also provides for an October 2013 municipal election.
