SUNDRE – Council approved next year’s budget during the regular meeting on Monday night, effectively reaffirming its adoption of the municipality’s second-ever, four-year operating budget that originally passed in 2022 along with a 10-year capital plan.
The operating budget for 2024 forecasts total cash expenditures at $9.7 million along with revenues of $5.3 million with the remaining roughly $4.4 million to be funded through taxation, the Fortis franchise fee, Municipal Sustainability Initiative grant, as well as restricted surplus accounts where identified.
By comparison, the 2023 budget had projected cash expenditures of almost $9.1 million and revenues amounting to a little more than $5.1 million with the remaining nearly $4 million to be funded through taxation, fees, grants and surplus accounts.
In 2025 and 2026, the final two years of the latest four-year budget cycle, cash expenditures are projected at nearly $9.8 million and just more than $9.9 million respectively, with revenues expected to remain fairly steady at more than $5.3 million, and the remaining $4.4 million in 2025 and $4.5 million in 2026 to be funded through taxation, fees, grants and surplus accounts.
At almost $4.4 million, the total cash requirement anticipated next year represents an increase of just more than 11 per cent compared with the 2023 cash requirement of roughly $3.9 million.
The projected cash requirement for 2025 is almost $4.5 million, which is budgeted to increase to nearly $4.6 million in 2026 representing more modest hikes of 1.27 per cent and 2.89 per cent respectively.
But an increase in the budgeted cash requirements for any given year does not automatically translate to a tax increase of an equivalent percentage.
“A cost increase percentage is not completely indicative of a tax rate increase, pending unknown factors such as additional revenue sources, cost-sharing alternatives, and increased new development,” reads a portion of the background prepared by administration and included in council’s agenda package.
“Administration believes approving cost increases separate from tax rate determinations is a prudent approach to financial stability and transparency,” it adds.
So while taxes in 2024 are also expected to increase by potentially five per cent or so, council does not officially set the rate until the spring once property assessments are finished and the municipality has a more accurate financial outlook.
The 2023-26 four-year operating budget and corresponding 10-year capital plan is available in full on the municipality’s website, www.sundre.com, by clicking on “Council” under the “Your Government” tab to access meeting minutes and agendas.
