Town operating, capital budgets approved

Olds town council has approved its 2018 operating budget, capital budget and a multi-year capital plan stretching from 2019 to 2028.

They were first introduced during council's priority and planning meeting Nov. 20. At that time, a two per cent tax rate increase was anticipated, to balance the books.

This year, the town anticipates obtaining $9,044,240 in tax revenue, up from $8,742,092 in 2017.

During council's Dec. 11 meeting, director of finance Garth Lucas told council that that's still the anticipated percentage. A final figure won't likely be known until after February, when property assessments in town are finalized.

Mayor Mike Muzychka says he's OK with the proposed two per cent tax hike, adding an increase is unavoidable, given inflation.

"Everything increases in value," he says.

Lucas says the tax hike is necessary because the town keeps growing.

For example, he says town staff have to maintain new roads that are built as the community grows.

"The new developments in town, we don't build the roads but we have to remove the snow from the roads. So every year, the total length of roads that we have to look after increases," Lucas says.

"You look out the window now and say ëwhy on earth did you increase the snow removal budget?' But, you and I have lived in Alberta long enough to know that this is not going to last."

Lucas says another reason for the increase is that "the area of parks and plantings has increased."

That does not include the new Rotary Athletic Park of Olds, which is under construction along 70th Avenue.

The town committed $3 million over its 2017-2018 budgets toward construction of that multipurpose athletic park, which is expected to be completed late next summer. Lucas anticipates money for its operation and maintenance will be factored in to the 2019 budget.

The $7.6-million capital budget includes $3.04 million for improvements to roads, trails and streets, $1.58 million for water and sewer infrastructure, and $2.01 million for recreation and parks projects. The remainder is for vehicles and other equipment, plus building upgrades.

Also included is $150,000 to determine design costs, etc., for a possible new town operations centre.

Current plans suggest it would be located along 70th Avenue, where the town's sewage treatment plant is. That plant is being taken out of commission because the town's sewage now goes to Red Deer for treatment as part of a regional system.

Muzychka says that operations centre is not the long discussed new town hall. It's not certain if or when a new town hall might be built.

However, he says town staff have called for one operations centre so they can be centralized in one place and thereby work more efficiently. Currently they work from several buildings throughout the community.

Muzychka says if a new town hall is created, it's not yet clear whether it would be added on to the operations centre or be a free-standing structure somewhere else.

Muzychka stresses the $150,000 is simply to study the ramifications of possibly creating the operations centre.

"(It's to) figure out what the costs are, what the benefits are, what the benefits of staying the way we have it are, if there are any," he says.

He says it's not known when that study might be completed.