Sundre council has approved a 2014 operating budget of $9,133,789 that will increase residential taxes by 3.17 per cent and commercial taxes by 2.68 per cent compared to last year.
Councillors debated the tax increase during the council meeting on Dec. 16 before approving it. Coun. Paul Isaac said he wanted to see a tax increase no higher than 2.5 per cent.
Wanda Watson-Neufeld, the town's director of corporate services, said the percentage probably would have been less than two per cent if it wasn't for a $34,243 addition to the budget related to the new CAO contract.
Coun. Chris Vardas said he was willing to approve the budget as presented and made the motion. Isaac and Coun. Myron Thompson were opposed. Coun. Tony Jordan was absent from the meeting.
The total amount going into 2014 reserves was approved at $537,791 -- $283,584 from taxes and $254,207 from user fees.
Council also approved the 2014 capital budget at $3,958,980. Watson-Neufeld said the capital budget is not funded through property taxes.
During the council meeting on Dec. 2, council reduced the proposed budget by $70,350, in an effort to bring the proposed tax rate down by almost half. This included reducing amounts being put into reserves.
A total of $52,482 was chopped from the budget during the Nov. 23 budget deliberations.
Council debated a residential tax increase of 3.43 per cent and a commercial tax increase of 2.85 per cent during the council workshop meeting on Dec. 9.
However, benefit decreases in the Workers' Compensation Board rates and in estimated benefit rates resulted in a further reduction of $4,931. Because of this, the tax increase was reduced to 3.17 per cent.
Therefore, net change to the budget resulted in a $93,520 reduction, which is equal to a 3.23 per cent reduction in the tax rate.
The proposed operating budget, after budget deliberations on Nov. 23, suggested a tax increase of 5.64 per cent residential and 4.33 per cent commercial.
However, during the Dec. 2 council meeting, the tax increase had been raised to 6.35 per cent residential, because the CAO contract had been added into the budget.
Taxpayers are on the hook for $2,803,057 of the approved operating budget. This is a $165,174 increase from 2013.
The budget includes an 18.07 per cent increase from 2013 in protective services and a 16.39 per cent increase in operational services.
Also included is $8,760 going towards street improvements, according to the minutes of the Nov. 23 budget deliberations meeting.
Taxpayer money will also be spent on benches, picnic tables and garbage and recycling receptacles for $7,600. These will be placed along the Highway 27 corridor.
Centre Street intersection enhancements were approved for $23,075, with $13,700 coming from taxpayers and $9,375 from the town's sponsorship programs.
As well, $10,000 is planned to be put in reserves for the purpose of downtown storefront improvements.
A business retention, expansion and attraction program is budgeted for $46,000, which is to be covered by grant money and contributions by Mountain View County.
Council chose to increase volunteer firefighter honorariums, budgeting a total of $60,742. Half of the funds are to be covered through property taxes and the other half by the county.
A $65,428 salary has been approved for the hiring of a second operational services operator.
Mayor Terry Leslie plans to write a weekly article to be distributed through the town's utility bills, the town's website and the Sundre Round Up. Council added a line for $1,000 to cover the cost of the article.
There was a salary decrease to staff in the community services departments and some in the operational services departments, saving the town $66,158.
As well, $79,450 has been budgeted for planning services such as updating the land use bylaw and the fee schedule.
Council decided to establish a cost of living allowance of one per cent, effective Jan. 1, 2014, for all town staff and council.
It was also decided that the use of town surplus to offset taxes would decrease by $10,000 each year until it is no longer required.
There will be a spring budget adjustment after town officials can access assessment figures in April.
Items up for discussion during budget deliberations were available for the public to review at the town office during the week of November 12 to 15.
The operating budget that was approved for 2013 was $7,792,467, which included a residential tax increase of 4.12 per cent. Taxpayers were on the hook for $2,637,883 of that money.
The 2013 capital budget was approved at $3,410,934.
