OLDS — Town council has given final approval to four budgets or plans, one of which stretches for five years.
As reported earlier, the 2023 operating budget calls for a five per cent tax revenue increase.
Revenues and expenditures are balanced at $32,773,150.
As the operating budget came up for discussion, Coun. James Cummings asked finance director Sheena Linderman to explain the difference between a five per cent revenue increase and a five per cent tax rate increase.
She said this year, town staff determined that another $500,000 in revenue was needed to balance the books.
“Instead of setting the tax rate, we’re setting the revenue required, so we’re setting $500,000,” Linderman said, adding that’s expected to come from an anticipated increase in the assessed value of property in town. Preliminary assessments are up about 9.3 per cent.
“This would result in an actual tax rate decrease because of the increased assessment value,” she said.
If those numbers all hold, the average resident can expect an increase of $57 on the municipal portion of their taxes.
Linderman said the precise assessed value of property in town is expected to be finalized at about the end of February.
After that’s known and the town sends that information in to the province, council generally passes its tax rate bylaw in April.
Cummings was happy with Linderman’s response, indicating it echoed a point he made when council discussed its budget earlier.
"That’s exactly what I was looking for,” he said.
A document provided in council’s agenda package outlined the features of this year’s operating budget:
• a four per cent cost of living adjustment (COLA) for town staff;
• a rental market study;
• the hiring of a municipal finance department intern;
• a purchase order system;
• an offsite levy review;
• integration of SharePoint, a web-based document management and storage system;
• a deputy fire chief;
• a work order system;
• CP Rail crossing work;
• increased roads and sidewalks maintenance;
• improvements to the aquatic centre; and
• the hiring of an lT coordinator.
Several reductions in the level of service provided are also planned.
They are: a reduction of hours at the Aquatic Centre; cutting back mowing to a maximum of once every two weeks; cutting summer staff by two positions; starting next year, suspending residential green bin pickup from November through March; and reducing the number of community compost bins from 100 down to 40.
Both the water and wastewater commissions in the area have warned that they are increasing their rates charged to the town.
As a result, the operating budget includes an increase in the water consumption rate of 0.11 cents per cubic metre and wastewater consumption rates of 13 cents per cubic metre. There are no changes to the solid waste rates.
Capital budget
Council also ratified the town’s 2023 capital budget. The total cost of projects planned is pegged at $7,227,455.
Infrastructure projects are expected to cost $3.44 million. Spending on vehicles and equipment is anticipated to cost $0.45 million. New and upgraded buildings are expected to cost $3.05 million and $0.28 million is set aside for land improvements.
“Any 2022 projects that remain incomplete at the end of the year will be brought forward to council in the spring of 2023 for consideration at that time,” the document prepared by town staff says.
Administrative staff also presented, and council passed, a 2024-2026 financial plan and a five-year capital plan for 2024 to 2028.
Linderman said 2024-2026 financial plan is a relatively new requirement under the provincial government’s Municipal Government Act.
It was created using 2023 budget numbers with the following assumptions for years 2024 through to 2026:
• an inflationary factor of two per cent on all goods and materials, contracted services and utilities;
• water and wastewater consumption rates increasing by 0.05 cents/cubic metre each year;
• no new employees;
• insurance increases of 10 per cent per year; and
• all service levels remaining status quo.
The five-year capital plan (2024 –2028) totals $27,057,000.
It includes:
• $11.6 million for road assessments and improvements;
• $2.3 million for operations department equipment replacement;
• $1.7 million for work at the Sportsplex;
• $1.5 million for upgrades and equipment for fire services;
• $1.2 million spent on park and trail maintenance or enhancements;
• $550,000 for replacement of a vehicle and work on the life cycle of the administration building;
• $525,000 for improvements to the RCMP building, including garage;
• $275,000 for cemetery expansion; and
• $150,000 to revitalize sports fields.
