(rdnewsNOW file photo)

By Troy Gillard

0.8% tax increase included

Lacombe passes 2021 Operating Budget, 10-year Capital Plan

Nov 12, 2020 | 9:07 AM

Lacombe city council has approved the 2021 Operating Budget, which includes a tax increase of 0.8 per cent.

Due to the COVID-19 pandemic and its effect on City facilities, Administration estimates a $200,000 decline in user fees. The City also is anticipating a decline in new building permits due to slow economic conditions.

Officials say the City of Lacombe will continue to maintain healthy transfers to reserves to fund capital projects in the 10-Year Capital Plan adequately, saying that the majority of transfers remain at 2019 levels, and tax-funded reserve transfers will increase by $32,000.

Debt servicing costs for 2021 are slightly lower in 2021, although the City intends to borrow additional funds to construct a new City Public works facility.

Lacombe’s water budget includes a three per cent increase in user fees, resulting in a water rate increase from $2.49 per cubic meter in 2020 to $2.56 per cubic meter in 2021. The flat utility rate will increase from $27.01 per month to $27.82 per month on all active accounts.

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The Wastewater Budget includes a three per cent increase in user fees. The Wastewater Rate will increase from $2.66 per cubic meter in 2020 to $2.75 per cubic meter in 2021. The Flat utility rate will increase from $20.18 per month to $20.79 per month on all active accounts.

Solid waste fees will remain at the 2020 levels. The 2021 budget for the solid waste department is approximately 1.6 per cent lower than in 2020. The decline in revenue is mainly due to lower fees from commercial solid waste, and the reduction in expenses is a change in the requisition from the Solid Waste Commission for 2021.

Grants to local organizations remain largely the same as 2020 levels; however, the Mary C. Moore Public Library requested $10,000 less than the previous year. Operating funding for Echo Lacombe Association was eliminated at their request, saving another $6,000.

“Council is pleased to have approved the 2021 Operating Budget, which keeps our community’s tax rate below inflation and in line with our goals as Council,” Mayor Grant Creasey said. “We thank City Administration for working to keep costs as low as possible for citizens during a year that was economically challenging.”

Lacombe city council has also approved the 10-year Capital Plan. Significant projects in the plan include:

1. Public Works Building – Total cost $5.0 million

2. C&E Trail Upgrades – 63rd St north to City Boundary –Total cost $7.2M

3. Fire Hall – Total Cost $5.0 million

4. Tower 1 Aerial Fire Response Truck – Total Cost $1.6 million

5. Pumphouse B – Upgrade Reservoir -– Total Cost $3.5 million

City officials say the plan is fully funded and relies on increased debt servicing. Estimated costs are based on 2021 prices. The plan is also contingent upon a two per cent municipal growth rate – which was reflected in the 2019 Municipal Census.

(With file from media releases)