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Canmore council approves interim 2021 operating budget

Municipal property taxes in Canmore this year were held at 2019 rates, but council has directed administration to prepare a 2021 budget based on the originally approved 2020 budget with a three per cent cap on increasing tax rates. However, the 2020 budget had a 4.8 per cent increase above 2019 rates, which means the 2021 budget being prepared includes the potential for a 7.8 per cent increase to municipal taxes.
Canmore
RMO FILE PHOTO

CANMORE – COVID-19 has changed many things for Canmore residents, including how their elected officials consider and approve the annual municipal operating budget. 

On Tuesday (Dec. 1), council voted to approve an interim $55.3 million operating budget for 2021, with the intention to engage in a detailed budget process in the new year.

The approved interim budget is what council had in place originally for 2020, before the pandemic began mid-March and elected officials had to change course to deal with the financial effects of what the community was dealing with. That included finding $2.7 million in savings from the budget and keeping the municipal property tax rate at the same level as 2019. 

"This interim budget approval is required to ensure that programs and services can continue to be offered as the [Municipal Government Act] requires council approval for all expenditures," said general manager of corporate services Therese Rogers.

"Many municipalities regularly pass interim budgets, with some that we have found waiting to approve their annual operating budget as late as the spring, when the provincial budget is typically released."

Rogers said the budget supports municipal operations continuing as they are currently, with a final budget expected to be approved at the beginning of February. 

As for how the municipality deals with COVID-19 related expenses, council has directed administration to use $300,000 from the tax stabilization reserve for the first quarter of 2021.

The money was proposed to be used to pay for ongoing expenses related to the pandemic, support the human resources department catch up on work it had planned in 2020 and provide additional outdoor amenity space in the community – including an outdoor ice skating surface in Three Sisters. 

The added expenses due to COVID-19 so far in 2020 have totalled $326,000. 

Council voted Tuesday to approve the master fee schedule – which sets out all user fees and charges for municipal programs, services and facilities. The new fees, which Rogers said are based on a cost recovery model, take effect Jan. 1, 2021. 

"Adjustments are made to the master fee schedule to reflect the cost of providing services," she said. "The user pay principle is that the person or business needing the service pays the fee rather than general taxes covering these services.

"Changes to this year's fee schedule include inflation in supply costs, fuel and staff time. I did discover that in some cases we actually reduced fees based on the actual cost to do business." 

Mayor John Borrowman said many municipalities in Alberta may be facing the same situation as Canmore and may approve an interim budget. He noted it is not the first time Canmore has used an interim budget.

"It is certainly not unheard of," Borrowman said. 

In August, council provided direction to administration for preparing the 2021 operating budget. That included capping the proposed municipal property tax increase at three per cent based on the originally approved 2020 operating budget. That means administration is working with an overall increase to municipal property tax rates of 7.8 per cent. 

The pandemic had a significant affect on the Town of Canmore's 2020 budget, according to officials. However, manager of financial services Chelsey Richardson said during a finance committee meeting in November that it is hard to predict where the municipality will sit at the end of the 2020 fiscal year. 

"I really prefer to not speculate," Richardson said. "I think this year has been full of constant surprises. We are actively managing our budget ... but things are constantly in flux and I think what the next two months hold for us have yet to be seen." 

Council heard an overview of lost revenues as well as reduced expenses. However, Richardson was not able to give council an estimate on where the municipality would sit financially at the end of the year. 

"The uncertainty we have been seeing all year is going to continue, especially with cases on the rise right now," Richardson said. "We are tracking this very actively to make sure we are managing it the best we can." 

The finance committee begins meeting to deliberate the 2021 operating budget and changes to the capital plan on Jan. 5. 

Council also voted to cancel four capital projects that have not progressed or started this year. Two involved the Lions Park tennis court expansion and the playground replacement – both of which would be proposed as a new project in future years should the local tennis club successfully obtain grant funding. 

"This will come back to the finance committee in January for budget discussions for the capital budget moving forward," Rogers said. "But because no work has started now, we are not recommending carrying this project over as a work in progress, but rather that we resubmit it as a new project." 

A broadband planning study and planning management system expansion were also cancelled. 

The light fleet replacement capital project was changed in terms of scope, after council voted earlier this year to pause those efforts due to COVID.

In the meantime, a study on electric vehicles was completed for the municipality that made specific recommendations in terms of alternative vehicles to consider when replacing the fleet. Council voted in favour of changing the scope of that project to adopt the recommendations from the report. 

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