Canmore’s elected officials began going over the 2016 operating and capital budgets for the municipality at the beginning of November and that means by the time they are done next month and approve both, they will have set municipal property tax rates for 2017.
Council began with the operating budget at its first of five budget committee meetings and considered what a status quo operating plan would look like compared to one that addresses goals set out in its annual business plan.
The 2015 operating budget was just over $45 million and the municipality levied $20 million in municipal property taxes to contribute to paying for programs, services and operations.
If council were to pass a status quo budget, where service levels remain the same and changes to revenue, third party costs and staffing levels are taken into consideration; only a 0.3 per cent of a $58,000 property tax increase would be required.
Chief Administrative Officer Lisa de Soto recommended including the 1.8 per cent cost of living increase for Town staff in the budget – a $190,000 increase.
“Previous councils have done a salary freeze to reduce the cost of living, that is something you may want to consider, but we put it in as part of the status quo budget,” she said.
Not keeping cost of living increases in annual budgets can come back to haunt future councils, warned manager of financial services Katherine Van Keimpema, as it could lead to larger budget increases in future years.
Councillor Sean Krausert said it is fiscally prudent for council to maintain its methods of calculating wage and salary changes, including cost of living.
“Even though we are going through a tough financial time in Alberta, I think it is dangerous to make one-off adjustments based on current conditions,” Krausert said. “The system we have takes that into account.”
When all new council priorities for 2016 are included in the draft operating budget, the numbers change as a result. Those new priorities include increasing affordable housing stock, establishing defined targets for reserve and capital contributions, implementing local transit, beginning an asset management strategy, new staff positions and enhanced street maintenance. That results in a net new budget tax change of 6.8 per cent, or $1.37 million.
The increased funds proposed to address affordable housing, de Soto told council, relates to a proposed increase of $305,000 for Canmore Community Housing Corporation.
“CCHC is proposing an increase to their budget of $305,000 and that is a fairly significant increase,” she said. “They have a new building coming on line as well.”
Coun. Joanna McCallum, who chairs the CCHC board, added the increase includes $172,000 that is just to maintain a status quo budget and the remainder of the funds are for increased services like contributions to the reserves for the Hector rental perpetually affordable housing building and increased costs associated with the completion of McArthur Place.
Van Kiempema recommended council establish two new reserves in 2016 for asset rehabilitation and replacement costs ($200,000) and flood mitigation structure maintenance ($50,000).
General manager of municipal infrastructure Michael Fark told council the goal is to see $250,000 a year go into that particular reserve to help pay for the maintenance cost of the proposed $39 million debris flood retention structure on Cougar Creek and other flood mitigation in the community.
“We are anticipating significant maintenance costs as debris piles up behind the structure; we will have to go in and clean up,” Fark said.
Council continued its budget committee meetings Thursday (Nov. 12) 8:30 a.m. at the Civic Centre when it will consider the utilities and solid waste services budget and hear for partner organizations that receive municipal funding.
