CANMORE – Canmore residents can expect a 12.5 per cent municipal tax increase in 2023 and 5.5 per cent in 2024.
Town council approved the 2023-24 operating budget on Dec. 20, leading to a municipal tax increase of an extra $226 for the year or $18.83 a month on a home valued at $800,000 under 2021 property assessments. The median annual municipal tax bill is $2,035.
Mayor Sean Krausert said it was a difficult budget year, particularly due to inflation and interest increases being faced across the world.
“Nobody, including council and administration, likes taxes going up. Of course, we understand the past few years have been difficult on everyone and the prospect of a double digit tax increase can cause additional stress,” he said.
“The Town of Canmore is subject to the same inflationary forces and interest rate increases that have raised the cost of living and for doing business. This budget represents a status quo level of services and programs being provided to the community, all of which were asked for by residents over the years. The budget also advances priorities such as a transit enhancement, increasing affordable services to retain and attract families, emergency notifications and response plans, reducing our impact on climate change and productive public engagement.”
Krausert said many increases such as insurance, professional fees, banking fees, energy costs and less funding from the province are ultimately out of municipal control in determining the budget.
Many of council’s comments focused on an emphasis of not paying too much attention to the double digit percentage increase, but the overall tax bill, the work to get to the final number and the services residents get from them.
“I don’t think it’s best to only focus on that number without understanding how we got to the number, the factors influencing budgeting for us and all municipalities in Canada and Alberta,” said Coun. Tanya Foubert. “We’ve done a lot of work to maintain the excellent services we provide within a restrained fiscal process. We’ve put a lot of things in the budget that will drive towards our strategic plan and priorities.”
In addition to increased costs faced by the municipality, Coun. Joanna McCallum said the zero per cent increase in 2020 at the beginning of the COVID-19 pandemic has a direct impact on future budgets.
“We’re still paying for it in this budget. … I wanted to point out the trickle down over years we have to play catch-up,” she said. “You add catch-up to inflation and labour issues and supply chain and it makes life more expensive. … There’s important base services as a municipality we are required to provide and required to provide at a certain level and they cost money, require staff, require equipment and require upgrading – and this budget addresses all of those things.”
The initial budget work by Town staff in the summer had a projected 20 per cent increase, but it was scaled back to 12.5 per cent when presented to finance committee.
A staff report noted increases in the RCMP contract – which has the Town now pay 90 per cent of costs instead of 70 per cent because the population is now more than 15,000 – and fire services as well as inflation led to the double digit increase.
Policing and fire costs led to a $600,000 withdrawal from the tax stabilization reserve to offset further tax increases in 2023.
The paid parking reserve – the newest option to draw from Town coffers – helped cover 33 per cent of Canmore’s Roam requisition, increased service for the Grassi Lakes route in 2024 and the Route 3 regional bus between Banff and Canmore, as well as a one-year community evaluator position for the community services department
The Fortis franchise fees will also begin increasing, with 16 per cent in 2024 and jumping two per cent each year until it hits the maximum of 20 per cent in 2030. The 2024 ATCO franchise fees will also hit the maximum at 35 per cent.
For residential water with an average based on 15m3 of water used per month, the bill will increase $33.04 a year in 2023 and $27.06 in 2024. For commercial properties, it could lead to a 5-5.6 per cent increase in 2023 and 4.2-4.3 per cent in 2024 that depends on the water metre size.
Utility services are expected to cost $16.9 million in 2023 and $17.9 million in 2024.
“Given the times, we need to be able to access revenue and in using this tool it allows us to access revenue that is based on usage,” Krausert said. “One can keep their fees down by using less. For those who do not, they’ll be contributing through these fees to the revenue of the Town.”
The residential waste and recycling and commercial recycling fees will increase five per cent in each of 2023 and 2024. For residential waste, it will go from $18.82 in 2022 to $19.77 in 2023 and finally $20.76 in 2024. The residential recycling is at $16.51 in 2022, then $17.34 in 2023 and $18.21 in 2024.
Commercial recycling will jump from $24.10 in 2022 to $25.31 in 2023 and $26.58 in 2024.
Originally recommended to be postponed, the passenger rail station and impact study was added to the budget due to Premier Danielle Smith expressing interest in the project. Under former premier Jason Kenney, the provincial interest was lukewarm.
The capital budget for 2023 is $37.2 million and $24.1 million in 2024. The six-year capital plan outlines $167.5 million in potential projects.
The province’s education tax, which is collected on property tax bills, has yet to be determined by the Alberta government. It typically is decided in late winter or early spring.
Eleven new staff positions will be created in 2023 and three in 2024. Among them are HR, IT, planning, engineering, municipal enforcement and a facilities supervisor.
A 5.9 per cent cost of living increase in 2023 followed by 2.6 per cent in 2024 was also approved.
Much of the guidance in preparing and deliberating on the budget comes from council’s 2023-26 strategic plan, which was approved in June and focuses on livability, the environment, building relationships and maintaining the long-term interests of residents.
“I think it goes a long way to address our priorities, the community’s priorities,” said Coun. Wade Graham.
“I hope the community understands where we’re coming from with a lot of these numbers.”
BUDGET INCREASE
2022: 5.6 per cent
2023: 12.5 per cent (13.9 per cent without growth)
2024: 5.5 per cent (6.7 per cent without growth)
OPERATING BUDGET
2022: $61.4 million
2023: $68.3 million
2024: $73.2 million
CAPITAL BUDGET
2023: $37.2 million
2024: $24.1 million
MUNICIPAL TAXES
2022: $28.1 million
2023: $32 million
2024: 34.2 million
RESIDENTIAL WATER RATE AVERAGE INCREASE BASED ON 15m3 OF WATER CONSUMPTION PER MONTH
2023: $33.04
2024: $27.06
COMMERCIAL WATER RATE AVERAGE INCREASE BASED ON 15m3 OF WATER CONSUMPTION PER MONTH
2023: Between five and 5.6 per cent
2024: Between 4.2 and 4.3 per cent
RESIDENTIAL WASTE
2022: $18.82
2023: $19.77
2024: $20.76
RESIDENTIAL RECYCLING
2022: $16.51
2023: $17.34
2024: $18.21
COMMERCIAL RECYCLING
2022: $24.10
2023: $25.31
2024: $26.58
BY THE NUMBERS (NUMBERS IN BRACKETS ARE GRANT AMOUNTS)
2023 CAPITAL PROJECTS
- Pumphouse 2 replacement and capacity upgrade: $20 million ($3.687 million)
- Bow Valley Trail wastewater upgrade phase two: $3.1 million
- Bow Valley Trail and Teepee Town street and drainage improvements: $2.7 million ($2.03 million)
- Bow Valley Trail water upgrade phase two: $1.75 million
- Bow Valley Trail pathway improvements: $900,000 ($540,000)
- Bridge asset replacement: $800,000 ($800,000)
- Wastewater treatment plant disinfection system replacement: $700,000
- Prospects Heights retaining wall: $550,000
- Bus stop improvements: $550,000 ($300,000)
- Three Sisters Creek hazard mitigation design: $325,000 ($188,000)
- Elevation Place repairs and maintenance: $300,000
- Elevation Place cooling enhancements: $266,000
- Pathway network connectivity: $250,000 ($50,000)
- External legal counsel for NRCB review of Silvertip gondola project: $250,000
- Fire hall station topsoil management: $200,000
- Mode shift initiatives: $200,000 (unfunded)
- Repurposing fire hall: $200,000
- Trails surface rehabilitation: $200,000
- Jumping platform for Quarry Lake: $200,000 ($100,000)
- Climate emergency action plan development: $150,000
- Teepee Town 2nd Avenue rehabilitation design: $150,000
- Second phase of service level review: $100,000
- Waste characterization study: $100,000
- Boulder Crescent depot redevelopment design: $80,000
- Accessibility study for facilities: $75,000
- Universal public bathroom study: $75,000
- Audio visual upgrades to council chambers: $75,000
- Scout Hall repairs and maintenance: $75,000
- Reconciliation, equity, diversity and inclusion audit: $70,000
- Heliport landing pad surface replacement: $65,000
- Human-wildlife coexistence strategy and action plan: $60,000
- Public art master plan: $50,000
2024 CAPITAL PROJECTS
- Railway Avenue street improvements: $5 million ($3.3 million)
- Three Sisters Creek hazard mitigation: $4.225 million ($3.877 million)
- Teepee Town 2nd Avenue rehabilitation design: $2.95 million ($2.5 million)
- Railway Avenue wastewater upgrade: $2.4 million
- Wastewater treatment plant influent screen capacity upgrade: $900,000
- Bow Valley Trail wastewater upgrade phase three: $600,000
- Elk Run maintenance facility repairs and maintenance: $600,000
- Salt shed rooftop solar installation: $550,000 (unfunded)
- Stone Creek hazard mitigation: $500,000 ($410,000)
- Elevation Place condition assessment and priority repairs: $500,000
- Fitzgerald rise playground parks washroom: $230,000 (unfunded)
- Wastewater treatment plant odour control facilities design: $200,000
- Spring Creek dog park: $120,000 (unfunded)
- Human-wildlife coexistence implementation: $100,000
- Property tax taskforce: $75,000 (unfunded)
- Indigenous consultation support: $50,000
- Tourism economic impact assessment study: $40,000
ADDITIONAL BUDGETED REVENUE IN 2023
- $400,000 in new growth
- Paid parking is budgeted to have $1.2 million in revenue for a $405,000 increase
- Recreation services are set at 3.9 million for a $175,000 increase
- Increased franchise fees from ATCO Gas and Fortis Alberta will increase by $182,000
- Permit revenues have a budgeted increase of $253,000
ADDITIONAL BUDGETED REVENUE IN 2024
- $400,000 in new growth
- Paid parking is budgeted to have $1.2 million in revenue
- Recreation services will be at 3.9 million
- Increased franchise fees from ATCO Gas and Fortis Alberta are set to to increase by $854,000
- Permit revenues will have an increase of $249,000
ADDITIONAL BUDGETED EXPENSES IN 2023
- Insurance costs are budgeted to increase by $135,000 to $900,000.
- Bank fees are costed out to increase by $67,000.
- Professionals fees are budgeted to jump by $275,000.
- RCMP costs will increase by $295,000.
- Roam transit Canmore requisitions will increase by $537,000 to $2.1 million.
- Contracted services are set for an $104,000 increase.
- Cost-of-living increase is budgeted at $1.15 million.
- Extra staffing for Canmore Fire-Rescue is budgeted at $309,000.
- Increases in CPP, EI, benefits and short-term disability will see a $288,000 increase.
- Debt servicing is set to increase by $300,000 with borrowing rates significantly higher.
ADDITIONAL BUDGETED EXPENSES IN 2024
- Insurance costs are estimated to increase by $50 to $950,000.
- Bank fees are projected to increase by $9,000 to $76,000.
- Professionals fees are budgets to jump by $84,000.
- RCMP costs are expected to increase by $436,000.
- Roam transit Canmore requisitions are estimated to increase by $144,000 to $2.2 million.
- Contracted services are estimated for an $322,000 increase.
- Cost-of-living increase is projected at $563,000.
- Extra staffing for Canmore Fire-Rescue is budgeted at $124,000.
- Increases in CPP, EI, benefits and short-term disability could see a $300,000 increase.
- Debt servicing is projected to increase by $289,000 with borrowing rates significantly higher.
RESERVE FUND TRANSFERS IN 2023
- A $600,000 transfer from the tax stabilization reserve to offset RCMP costs and Canmore Fire-Rescue staff increases.
- The development application reserve will transfer $315,000 to cover a development planner and community development engineer.
- The photo radar reserve will have a $268,000 transfer to cover 1.5 RCMP positions and community safety initiatives.
- A contribution of $243,000 will go to the photo radar reserve.
- The art trust fund reserve will see a draw of $31,000.
- An estimated $70,000 will be transferred to the art trust fund reserve.
- The paid parking reserve will have a $41,000 transfer.
- A $250,000 transfer to the asset rehabilitation/replacement and flood mitigation reserve.
RESERVE FUND TRANSFERS IN 2024
- A $600,000 transfer from the tax stabilization reserve to offset RCMP costs and Canmore Fire-Rescue staff increases.
- The development application reserve will have a $315,000 transfer to cover a development planner and community development engineer.
- The photo radar reserve is budgeted to see a $278,000 transfer to cover 1.5 RCMP positions and community safety initiatives.
- A contribution of $243,000 will be made to the photo radar reserve.
- The art trust fund reserve will see a draw of $63,000.
- An estimated $102,000 will be transferred to the art trust fund reserve.
- The paid parking reserve has no planned transfer.
- A $250,000 transfer to the asset rehabilitation/replacement and flood mitigation reserve.
OTHER ALBERTA MUNICIPALITY INCREASES
- Airdrie: 5.97 per cent in 2023 (Property assessed at $420,000 will pay an extra $9.87 a month and the median annual municipal tax of $2,130)
- Banff: 10.96 per cent proposed in 2023 (Property assessed at $467,100 would pay an extra $10.37) *As of Dec. 19 since the Town is still in deliberations*
- Calgary: 4.4 per cent in 2023 (Property assessed at $485,000 would pay an extra $ 12.08 per month and have a median municipal tax of $2,277.07)
- Cochrane: 3.7 per cent in 2023 (Property assessed at $495,700 will pay an extra $7.67 a month)
- Edmonton: 4.96 per cent in 2023 (For every $100,000 of assessed property will see a $34 increase from $691 to $725. A single-family detached home assessed at $400,000 would have a median annual municipal tax bill of about $2,900)
- City of Grande Prairie: 1.71 per cent in 2023 (Property assessed at $316,000 will pay an extra $4.37 a month and have median annual municipal tax of $3,121)
- Lethbridge: 5.1 per cent in 2023 and 2024 (Property assessed at $345,000 will pay an extra $9.50 a month)
- MD of Bighorn: 3.5 per cent in 2023 (Property assessed at $750,000 will pay an extra $4 a month)
- Morinville: 3.5 per cent in 2023 (Property assessed at $334,596 will pay an extra $7.89 a month)
- Red Deer: 4.61 per cent in 2023 and 4.12 in 2024 (Property assessed at $345,000 will pay an extra $9.57 a month)
- Rocky View County: 6 per cent in 2023 (Property assessed at $950,000 will pay an extra $12 a month and have a median annual municipal tax of $2,406)
- Sturgeon County: 3.9 per cent in 2023 (Property assessed at $492,000 will pay an extra $6 a month)
