Property owners in Canmore can expect a four per cent increase on their municipal tax bills in 2016 after council finalized its operating and capital budgets for next year.
The four per cent increase represents only half of a property owner’s total tax bill, however, with the other half being the Alberta education requisition that is determined when the provincial government puts forward its annual budget. The increase is also a net of new growth, which represents 0.6 per cent of a municipal tax increase – every one per cent relates to about $200,000.
Manager of finance Katherine Van Kiempema went through the final budget numbers for both operating and capital and five recommendations administration was asking council to approve Tuesday night (Dec. 15).
“We started with a 6.8 per cent tax increase net of growth and by the time the budget committee was finished sharpening its pencils, we ended up with a 3.9 per cent increase net of growth,” she said. “Year-over-year, municipal taxes are going up 4.5 per cent but 0.6 per cent is accounted for by new taxpayers.”
The most significant portion of the tax increase, noted Van Kiempema, is the establishment of local transit and enhanced regional transit, which represents 1.6 per cent of the municipal tax rise. New positions approved in the budget represent 2.4 full time employees.
However, Councillor Ed Russell felt another part-time employee could and should be added to the budget in the bylaw services department to assist during the summer months at a cost of $8,000.
Russell argued the enhanced summer enforcement program for bylaw is important to support staff “who already take a battering on a good day.”
The motion was supported unanimously by council, and Coun. Sean Krausert noted the budget process allows elected officials to reconsider decisions made at the committee stage.
“The good thing about our process is we go through the budget committee, but then we get a chance to step back out and see it in its entirety again and look at decisions we made along the way again,” Krausert said.
Buoyed by the successful motion, Russell proposed to cut another $50,000 from salaries, wages and benefits and, more specifically, performance pay for municipal staff, which would leave $75,000 in that budget line. Council, however, did not support the motion.
The total operating budget for Canmore in 2016 is $45.8 million. When it comes to bringing that money in, 45.7 per cent of revenues are from taxes, 39.3 per cent from sales and rentals, 5.2 per cent from permits and fines, three per cent from grants and 6.8 per cent from other. Van Kiempema reminded council the ‘other’ category mostly reflects transfers in and out of reserves and between departments.
That $45.8 million is divided in expenditures between staffing (34.4 per cent), administrative costs (four per cent), contracted services (25.5 per cent), supplies (seven per cent), borrowing (6.9 per cent) and other (22.2 per cent). Van Kiempema added in this instance, ‘other’ also represents funds paid to third party affiliates like the public library and Canmore Community Housing Corporation.
The impact, she said, for the average $750,000 residential property when the Perpetually Affordable Housing levy, water utility and solid waste services utility are calculated on top of municipal taxes ($51) is $116 a year or a $9.67 a month increase on the tax bill.
Another significant change in the capital budget approved by council is to the Cougar Creek long-term hazard mitigation project currently in design. Of the $34.15 million budget approved last January by council resolution, $3.5 million was to be funded from general capital reserve.
Van Kiempema proposed changing the funding source from reserves to debt for several reasons. She said drawing that large an amount from reserves would drain it to half of its targeted balance. By funding the municipal portion of the project through debt, the reserves are available to fund other community priorities. She also said debt funding matches the cost of the mitigation to its beneficiaries – future taxpayers.
“It is going to be the people living there as the debris and water is held back that will benefit; it would make sense for the cost of that to be on their taxes through paying off debt,” she said.
The 2016 capital budget was approved at $12.9 million, with a total of 55 individual projects planned. Of that total, $3.9 million in projects are for the solid waste and water utility and $8.9 million for all other town operations.
The funding sources come from reserves (54 per cent), debt (19 per cent), grants (20 per cent) and transfer from operating (seven per cent).
“The proposed plan is affordable, achievable and ensures that council policies related to reserves and debt financing requirements have been met,” Van Kiempema said.
