CANMORE – One of the more difficult budget years in recent memories is about to begin.
Canmore council has been provided information on the ongoing work of its 2022 capital projects and a look at the 2023 capital and operating budgets with budget presentations and talks set to begin Nov. 8. Council had previously directed Town staff in July to return with a status quo budget as inflation, insurance increases, cost-of-living adjustments and provincial downloading will see council debate over difficult choices.
Town staff will open budget talks with a look at council’s strategic plan and council priorities, the impacts of provincial downloading and a review of the operating budget.
Budget presentations will continue Nov. 10 with presentations on the operating budget and revenue sources, while a capital budget review will take place Nov. 17 with the utility rate model for operating and capital budgets and an overview of the plans for 2025 and 2026 occurring Nov. 22.
One of the biggest changes will see the Town return to a two-year budget cycle, which had been abandoned during the COVID-19 pandemic because of uncertainty in financial impacts.
“There’s benefits to doing the two-year budget,” said Therese Rogers, general manager of corporate services for the Town of Canmore. “Both for yourselves from a planning perspective and seeing what’s coming on the horizon, but also from a workload perspective and being able to do that work.”
Rogers said there was uncertainty with provincial grant programs, downloading by the province on municipalities, the impacts of inflation, rising insurance costs, fuel cost increases, rising interest rates and the threat of a recession as factors for council to consider for the budget.
Council will deliberate on the budget Nov. 24, 29, Dec. 1 and 8, with utility rates, operating and capital budgets expected to be approved in mid-December.
Rogers highlighted that slightly more than half the tax bill for residents is the education tax, which is established by the province, collected by municipalities and then sent to the province.
“We have no ability in any way to influence that,” she said. “The amount we’re required to collect is based on assessment. The province determines that and they send us a bill and we collect it.”
The cost-of-living adjustment came in at 5.9 per cent and uses the Calgary CPI from June to June of each year, with the most recent months tracked and indicators forecasting for future years.
The report emphasized supply chain issues having a significant impact on projects being carried out this year, with some projects being delayed or unable to begin.
The passenger rail station and impact study is recommended to be cancelled due to the province not yet supporting the proposed Calgary to Banff regional rail service.
However, the staff report stated it would come back to the budget if the province were to support the plans. The cost savings would be $100,000.
Whitney Smithers, the general manager of municipal infrastructure, said it would be “exceedingly difficult” to do the study without more certainty on the project.
“There’s too many unknowns. If there was a decision on regional rail and the Town felt it was prudent to move forward with such a study, we would come forward with an out-of-cycle budget request for that project,” she said.
ONGOING CAPITAL PROJECTS
As of Sept. 30, the TSMVPL litigation has cost $260,000 of the $750,000 budget. The staff report noted new litigation that began in 2022 may need additional money to be budgeted in 2023 and the work doesn’t account for staff time.
The Palliser area structure plan is in the scoping and chartering phase, with policy development expected to begin in 2023. Work on the downtown area redevelopment plan will begin once the Palliser ASP is finished with its scoping and chartering. The two projects combined for $260,000 in the budget.
The polarizing Bow River west pathway first phase has an approved budget of $1.5 million and tendering is expected in early 2023. The TIP20 transportation improvement plan is expected to be finished by the end of the year, while several bus-related projects will also be completed or carried over to next year.
The intercept parking site evaluation will remain on hold due to the site being on TSMVPL-owned lands and waiting for the ongoing litigation and the future of Three Sisters Village and Smith Creek ASPs being determined.
The Cougar Creek flood mitigation work has a tentative completion date of 2024 and Stoneworks Creek flood mitigation is expected to begin in 2024.
The Quarry Lake jumping platform will not take place this year after estimated pricing came in above the $100,000 budget. It will be part of the upcoming 2023 budget.
As of Aug. 31, the Town has seen revenue in several departments be over budget. Building and engineering permits are $405,000 over and business registry revenue is $45,000 above budget due to development and economic activity. Those revenues will be funnelled into the economic development reserve.
Gas and electrical franchise fees were $169,000 above budget, but RCMP fines were $54,000 below budget.
The greatest expense saving is vacant positions, with roughly $800,000 being saved, and RCMP contract costs being about $275,000 lower than budgeted. However, the Town will be switched to the 90/10 per cent cost split in the spring now that Canmore has a population of more than 15,000 people.
The contracted services for the corporate administration is $150,000 higher than anticipated due to legal expenses and work for the ongoing FOIP request from Three Sisters Mountain Village Property Limited.
Through the end of August, the Town had $48.8 million in revenue compared to the estimated budget of $47.6 million. Total expenses are down from the budget of $33.8 million with it coming in at $32.3 million.
The total surplus through the end of August is $2.6 million and the annual budget was approved at $61.4 million in revenue and expenses.
CAPITAL PROJECTS OF NOTE
- TSMVPL litigation: $750,000 budgeted and $260,000 spent – Ongoing project.
- Main Street pedestrianization: $50,000 budgeted and $17,000 spent – Expected end-of-year completion.
- Service level review phase one: $100,000 budgeted and $28,200 spent – Expected completion in 2023.
- Labour market recruitment and retention strategy: $100,000 budgeted and zero dollars spent – Grant proposal underway.
- Organizational review: $165,000 budgeted and $100,000 spent – Expected to be finished in 2023.
- Long-range facility needs report: $50,000 budgeted and $0 spent – RFP is expected to go out before end of 2022.
- New fire hall: $14.65 million budgeted and $3.3 million spent – Work is ongoing and expected completion is 2023.
- Canmore Recreation Centre rooftop solar expansion: $530,000 budgeted and $382 spent – Contract was awarded and work likely to begin in 2023.
- Stan Rogers Memorial Stage: $175,000 budgeted and $218,000 spent – Project is mostly complete and staff looking into potential accounting error for being overbudget.
- Downtown ARP: $160,000 budgeted and zero dollars spent – Project to start after Palliser ASP scoping and chartering is complete.
- Palliser ASP: $100,000 budgeted and zero dollars spent – Project in scoping and chartering phase with policy development planned for 2023.
- Bow River west pathway phase one: $1.5 million budgeted and $20,000 spent – Detailed design is ongoing and tender expected for early 2023.
- Passenger rail station and impact study: $100,000 budgeted and zero dollars spent – Staff are recommending it be cancelled until the province supports the rail project.
- Complete street improvements Railway Avenue design: $500,000 budgeted and $10,000 spent – Chartering is complete and design and engagement likely to begin in early 2023.
- TIP20 transportation improvement plan: $14.1 million budgeted and $13.8 million spent – Project largely finished and expected to be done by end of 2022.
- Intercept parking site evaluation: $35,000 budgeted and $26,000 spent – Project on hiatus until TSMVPL litigation and future of Three Sisters Village and Smith Creek ASPs determined due to the site being on TSMVPL-owned lands.
- Cougar Creek flood mitigation: $49 million budgeted and $39 million spent – Work is ongoing and tentatively planned to be completed in 2024.
- Stoneworks Creek flood mitigation: $6.2 million budgeted and $945,000 spent – A 2024 start is anticipated.
- Lions Park playground replacement: $520,000 budgeted and $26,000 spent – Bids and designs received and a 2023 install is expected.
- Lions Park tennis court expansion: $750,000 budgeted and $27,000 spent – Bids received and construction expected for 2023.
- Community electric vehicle strategy: $20,000 budgeted and zero dollars spent – No bids received, so plan to repost.
- Quarry Lake jumping platform: $100,000 budgeted and $3,000 spent – Bids came in higher than anticipated, so the project will be resubmitted for 2023 budget.
- Lower Silvertip human-wildlife interaction management: $100,000 budgeted and $2,300 spent – Stakeholder engagement is ongoing.
- Utility Master Plan update: $360,000 budgeted and $70,000 spent – Work is ongoing and stakeholders are expected to review it in November, with it going to council in early 2023.
