By Sheldon Spackman

Crunching The Numbers

Lacombe city council seeks minimal tax increase

Nov 14, 2019 | 11:41 AM

In an effort to help keep property tax increases to a minimum, Lacombe city council has requested additional scenarios be provided for the 2020 Operating Budget and its currently proposed 1. 4 per cent tax increase.

At their meeting on Tuesday, council directed administration to present two additional scenarios – a zero per cent tax increase and a 0.9 percent tax increase.

City officials say the proposed Budget will limit the impact of reduced provincial funding for municipalities to about $5.24 per month for the average household in Lacombe.

The proposed 1.4 per cent tax increase, which is in line with Alberta’s Consumer Price Index, would see an average house in Lacombe valued at $380,000 receive a municipal tax increase of $42.07 in 2020, or $3.51 per month.

Proposed utility rates with a residential house consuming 18 cubic metres of water and receiving weekly garbage pickup, would see an increase of $1.73 per month next year.

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CAO Matthew Goudy admits the provincial budget is having an impact.

“There has been a significant reduction, not just to the cities directly, but to a lot of our community groups indirectly,” Goudy explained to council. “It totals around $400,000 for the City of Lacombe directly this year and future years. And, of course, that grows a bit next year with a few additional cuts to the grant-in-lieu of provincial taxes, of provincial properties, and an additional cut to the Municipal Sustainability Initiative (MSI) for the infrastructure funding that of course we depend on.”

Councillor Reuben Konnik however, feels they can do better than 1.4 per cent.

“I would really like to see what a zero per cent tax increase looks like,” exclaimed Konnik. “It all adds up, $60 this year, $60 next year, $60 the year after, it’s still an increase. This year we increased our franchise fees, utility bills are going up. I’d really like just to take a moment just to see what zero per cent looks like, I think we owe it to our constituents.”

Councillor Chris Ross feels following Alberta’s CPI (1.4 per cent) offers a better balance for taxpayers.

“I just think that if we don’t stay at CPI, we’re going to have to catch up again,” he warned. “I think our city is in a healthy financial position, but if we don’t maintain that, sooner or later it all just comes back and I don’t want to be in that position to catch up.”

Significant service level changes of note in the Operating Budget include new services such as automated traffic enforcement, support for the Lacombe Performing Arts Centre Foundation and discontinuation of BOLT Transit.

Additional Operating Budget highlights include Transfer to Reserve payments totaling just under $2.6 million, representing an increase to the City’s historical savings.

The 2020 provisional operating budget also includes $1.82 million of new debt to support development on the north side of the community.

New positions are also being proposed for council’s consideration in 2020, including a community peace officer and administrative analyst with the Lacombe Police Service, an asset management coordinator, seasonal utilities operator, and an increase of 0.2 FTE for a human resources coordinator position – meaning an additional day per week of support in the HR department.

Council will consider the anticipated Budget revisions November 25.

Meantime, council adopted the proposed 2020 Capital Budget comprised of 49 projects totaling an estimated $8.8 million.

Of those, 29 projects were anticipated in prior years, with 20 new ones recommended for consideration, and six previously identified for consideration, now re-prioritized, combined or eliminated.

Over $4 million in funding for capital projects will come from grants, with $3.68 million coming from reserve withdrawals, $1 million from debt and $70,000 from other sources.

Analysis of the 2020 Capital Budget reveals $5.2 million allocated for engineering structures, $1.52 million for buildings, $1.1 million for mobile equipment such as mowers, printers and furniture, $650,000 for vehicles, $350,000 for land improvements, but no spending planned for Public Works land.

Council also accepted on Tuesday the 2020-2029 Capital Plan for information.

The plan has been revised to reflect a total net spending reduction of nearly $274,000, including a contribution reduction to the Lacombe Athletic Park Association (LAPA). The City was to contribute $1 million over two years in 2021 and 2022 but will now be giving $500,000.

A new fire hall for the Lacombe Fire Department is listed as a $5 million expenditure slated to start in 2023 with completion in 2024.

C & E Trail improvements are deferred by one year, the completion of all work on Brownstone Road in 2020, removal of the Fairway Drive sidewalk project, deferral of the Lake Elizabeth / Lake Anne water level maintenance project until 2023.