By Troy Gillard

0% municipal tax increase

Lacombe County passes interim budgets

Dec 1, 2020 | 10:31 AM

Lacombe County council has adopted the county’s 2021 interim operating and capital budgets.

County officials say the budget supports the maintenance of existing service levels while managing the County’s spending in a responsible manner that reflects the current economic situation and follows the priorities set out in the County’s Strategic Plan, long-range road construction plan, and capital equipment replacement plan.

“Over the last few years, Lacombe County has faced many unique challenges facing our economy, including a significant loss in revenue from oil and gas well taxes and now the COVID-19 pandemic,” County Manager Tim Timmons noted in a release. “On November 27, Council voted to approve an interim budget for 2021 that recognizes the challenges and uncertainty in our province.”

Interim operating and capital budgets are approved each year and are the first stage of a two-stage process that authorizes the County to spend on approved projects and conduct operations on January 1, 2021. Stage two is the approval of the final budgets and tax rates and occurs in the following spring when the province sets the property tax levy for education purposes and when property assessment values have been confirmed.

The $55,307,620 interim operating budget is balanced and maintains existing service levels. County officials note that they are awaiting decisions from the province concerning regulated industrial assessments and rural policing costs before finalizing the budget in the spring of 2021.

Four central Alberta projects

Provincial government announces funding for new high schools in Red Deer and Sylvan Lake

2h ago

No ongoing risk

Update: Red Deer RCMP respond to incident on Cole Street

18h ago

march 10

Open house for Red Deer Public Schools' Fire Academy

22h ago

Among the highlights of the operating budget is a 0% municipal tax rate increase.

There is also an allowance for the proposed assessment reductions for oil and gas assessments of $180,000. The county says exact amount of the proposed changes for the 2021 tax year are yet to be fully calculated.

The elimination of the Well Drilling Tax is also recognized in this budget.

To offset these revenue changes, county officials say upcoming vacancies in several positions will remain vacant, and that other cost savings were achieved through adjustments to material costs such as fuel.

The 2021 interim capital budget is $18,636,330, a decrease of $14.91 million (-44.45%) compared to 2020. Highlights include a decrease in road projects of $4.312 million and an increase of $832,930 for bridge projects, including both replacements and engineering. Equipment and vehicle replacements decrease by $2,514,570.

The capital budget also includes the completion of the West QEII utility servicing project.

“It’s important to note that of the $18.636 million in capital spending in 2021, $6 million (32.2%) is sourced through funds set aside in prior years through the capital replacement plans. This is compared to $18.4 million in 2020,” explained Lacombe County Reeve Paula Law. “By using our capital reserves, funds from equipment trade-ins, and capital grants, we can ensure that we are moving forward with crucial projects that will keep Lacombe County moving in a positive direction.

“Maintaining service levels and considering the County’s future growth is factored into the 2021 interim budgets, as we know that our ratepayers expect excellent service through our infrastructure and maintenance programs,” she added. “There are many challenges facing our municipality and council feels this budget will balance the reality of the many uncertainties facing Lacombe County, without negatively impacting our ratepayers.”