MD OF BIGHORN – The path to 2023 has been set for the MD of Bighorn with the passing of the 2023 operating budget and five-year capital plan.
The 2023 property tax requirement, which is the amount of property tax to be levied to meet the needs of the MD, will be $7.5 million, a rise of 14.3 per cent over 2022.
“As part of the increase in our property tax requirement, a big part of that increase is the cost of providing services, maintenance and day-to-day operations,” said Shaina Tutt, director of corporate and community services.
After several years of minimal service changes and unchanging property tax rates, early indicators have the mill rate rising by 3.5 per cent over the 2022 value. The bylaw for the tax rate will be established after assessment notices have been finalized.
The operating budget will increase by 14.7 per cent from 2022, while the capital budget will see a sharp decrease from the previous year.
Staffing makes up a large portion of the municipal budget, and administration allows for an increase of five per cent to current salaries. There are also more positions to pay for including two peace officers, a bylaw services supervisor, the fire chief/director of protective services, an additional seasonal worker and a records management coordinator.
One of the largest percentage increases in the budget was the change in engineering and permitting services, rising from $7,500 to $42,000. Municipal administration said it was due to a third-party engineer being hired for a subdivision development as well as more planning applications.
“That is a huge increase,” Rosvold said. “Are we doing more third-party reviews than 2022?”
Administration said it would be the case, with the planning department having to hire additional staff.
Engineering and permitting services are defined as a flow-through, as it is an expense and a revenue due to third-party consulting.
The 2023-2025 reserves budget will fluctuate over the next three years. The funding reserves earmark funds for future use.
From 2022, when the tax revenue required for contribution to reserves was $888,472, it will fall to $655,844 in 2023. It will then rise to $734,297 in 2024, followed by a huge jump in 2025 to $982,908. According to the budget, the MD is forecasted to close 2022 with $12.82 million in reserves.
The main reason for the jump from 2024 to 2025 is an increase in the contribution to capital reserves from $85,297 in 2024 to $333,908 in 2025.
For 2023 capital projects, the MD has several potential projects planned, including improving the municipal administration building ($34,000), conducting an organization review ($50,000), and a transportation needs assessment ($25,000).
“The budget is approving the proposed capital projects,” Tutt said. “Depending on the value of the project, an information report would be brought forward for discussions at the committee. This is approving the concept of the project.”
The 2023 potential capital projects could come in at $3.3 million, with $2.1 million coming from reserves, $603,000 from taxes and the remaining $630,500 from grants.
In 2024, the forecasted capital projects are $2.5 million with grants covering $1.22 million, reserves $706,000 and taxes $560,000. The possible capital projects in 2025 are $7.05 million – largely due to the new administration building earmarked for that year – with $3 million from reserves, $156,000 from taxes and $400,000 from grants. There is $3.5 million outlined from an other source.
Some of the biggest projects are the Pigeon Creek pedestrian bridge, costing $75,000, road rehabilitation at $400,000 and East Exshaw lane regrading at $210,000. The road rehabilitation will be covered by a provincial grant.
Administration said they were primarily related to the Mountain Gateway Project, which involves regrading lanes and creating a partial ditch for drainage.
“With the approval of the budget, we can move forward with the design for the lane grading,” said Bill Luka, director of planning services. “I would like to have it pushed in before spring.”
Rosvold asked about the road and bridge rehabilitation programs and if that was the same as a reserve.
“That is the funding source,” Tutt said. “There would be funding from reserves. It is not a contribution to, but a deduction from.”
The most expensive capital project will be the Exshaw stormwater improvements, which will begin in 2023 and continue into 2024. The cost for this is $750,000, which is coming out of the reserves.
Upon the passing of the budget, Rosvold thanked MD staff for their work in putting it together.
“This is a considerable amount of work with all the administrator changes that have gone through our office,” Rosvold said. “It has been even more work. Thank you for all your efforts.”
FORECASTED PROPERTY TAX REQUIREMENT
2022: $$6.54 million
2023: $$7.47 million (14.3 per cent increase from 2022)
2024: $7.57 million (1.29 per cent increase from 2023)
2025: $7.62 million (0.64 per cent increase from 2024)
ESTIMATED RESERVE CONTRIBUTIONS
2022: $888,500
2023: $656,000
2024: $734,000
2025: $983,000
BUDGETED TRANSFERS TO RESERVES
2022: $1.23 million
2023: $996,000
2024: $1.08 million
2025: $1.33 million
2023 PROPOSED CAPITAL PROJECTS
- Exshaw stormwater improvements – $750,000 from reserves
- Road rehabilitation work – $400,000 from grants
- Fire chief command vehicle – $250,000 from reserves
- Bush buggy replacement – $230,000 from reserves
- Structural protection trailer – $220,000 from reserves
- East Exshaw lane regrading – $210,000 ($125,000 from reserves and $85,000 from grants)
- Exshaw area structure plan – $130,000 from taxes
- Dead Man’s Flats Pigeon Creek pedestrian bridge – $75,000
- Jamieson Road area structure plan – $70,000
- Harvie Heights area redevelopment plan – $50,000
2024 PROPOSED CAPITAL PROJECTS
- Exshaw stormwater improvements – $750,000 from grants
- Dead Man’s Flats 2nd Avenue streetscape improvements – $500,000 from taxes
- Road rehabilitation work – $400,000 from grants
- Garbage truck – $225,000 from reserves
- Harvie Heights stormwater improvements – $50,000 from reserves
2025 PROPOSED CAPITAL PROJECTS
- New administration building – $4.5 million ($1 million from reserves and $3.5 million from other)
- Bridge rehabilitation program – $955,000 from reserves
- Road rehabilitation work – $400,000 from grants
- Hooklift – $175,000 from reserves
- Seven organic bins – $105,000 from taxes
