OLDS — The Town of Olds' draft base operating budget calls for a balanced budget of $34,994,901, an increase of $290,932 over 2024.
That may change as council holds further discussions on the budget, with a goal of finalizing it on Dec. 9.
Corporate services director and finance director Sheena Linderman presented the numbers during council’s Nov. 28 budget meeting.
She said the base budget is the cost to deliver the same level of service next year as was delivered this year.
Linderman noted that the base budget so far calls for no increase in taxes. The net property tax figure remains the same as last year’s budget: $11,097,336.
“I've not included any increase to assessment or tax rates in this base budget,” Linderman said.
Several councillors pointed out that even if the tax rate was frozen, taxes might still go up for some homeowners if their property assessments, released early next year, rise, meaning their homes are worth more than previously.
According to the draft base budget, salaries, wages and benefits are pegged at $8,031,901, up $295,520 from last year’s budget.
Linderman said she has applied a vacancy allowance to the salaries as a whole, noting in any given year, vacancies do crop up among staff positions.
Utilities are projected to be $1,196,750, up $86,150 from last year.
Administrative staff presented council with a long list of proposed projects, including vehicle and body-worn cameras for police and municipal enforcement officers, pathway construction and updating the municipality's 23-year-old land use bylaw.
Linderman said any projects would have to be funded through taxation. It was noted that a one per cent tax increase brings in $110,000 in revenue.
“Council will need to decide if these projects are the best use of the limited funding available,” Linderman said.
Linderman and the town's chief administrative officer, Brent Williams, said the Town of Olds is being squeezed hard by inflation, just as local residents are in their household budgets.
In fact, in the town’s case, some of that inflation is way higher.
“The town does not buy a lot of loaves of bread or groceries, for example, but when you look at fuel, materials, construction services, those are trending in the double digits,” Williams said.
Linderman said the cost of asphalt has risen by 10 per cent and concrete 30 per cent.
The municipality is looking at spending $1.8 million to combat water loss inflow and infiltration into its sewers.
Williams said the cost of water leaks, inflow and infiltration, although high, is already beginning to fall, thanks to efforts to solve that problem, undertaken in the last few years.
Another pressure point is the federal government’s carbon tax. The next carbon tax hike is slated to kick in next April.
“This will have an approximate $21,000 additional impact on our operating budget, bringing the total carbon tax estimated on natural gas and fuel to $150,000,” council was told.
“This does not include the indirect increases we see from any suppliers and contractors as they pass the cost of carbon tax on to their customers.”
The municipality has also seen cuts in provincial funding.
At the same time, the province has increased requisition (money it requires the Town of Olds to collect on its behalf) by a total of $305,000 for the education tax and the Mountain View Seniors' Housing requisition is also increasing.
