By rdnewsNOW Staff

Tax Increase Expected

Lacombe city council reviews 2022 Operating Budget Draft

Oct 28, 2021 | 8:27 AM

Lacombe city council received a draft of the 2022 Operating Budget this week based on council’s desire to limit the tax increase to 2.7 percent, with an additional one percent Special Paving Tax.

City officials say the tax increase equals an approximate $405,000 in additional tax revenue for the City, and the Special Paving Tax would result in $150,000 designated specifically to maintain overall road conditions.

“Lacombe City Council is encouraged after receiving a draft of the 2022 Operating Budget, which aligns with council’s goal of maintaining tax increases to inflation,” says mayor Grant Creasey, in a press release. “Council looks forward to deliberating this budget and how it will affect our citizens at the upcoming Budget Workshop.”

The 2022 Budget process started in March 2021, when the former council received and adopted the 2021 budget schedule.

In terms of utility funded operations such as water, the proposed 2022 budget for revenues and expenses in the water department is noted as higher than the 2021 approved budget.

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The proposed budget includes a 2.7 percent or $89,000 increase in user fees. As a result, the water rate is expected to increase from $2.56 per cubic meter in 2021 to $2.63 per cubic meter in 2022.

Similarly, the flat utility rate is anticipated to increase from $27.82 to $28.57 per month on all active accounts.

On the expenditure side, the 2022 budget includes an $85,000 increase in contract services for a contracted Data Analyst and the City of Lacombe water Loss Assessment Study.

Meanwhile, the wastewater department’s proposed 2022 revenue and expenditure budget is approximately two percent lower than the 2021 approved budget.

The proposed 2022 wastewater budget includes a 2.7 per cent increase in user fees, and the wastewater rate will increase from $2.75 per cubic meter in 2021 to $2.82 per cubic meter in 2022.

Similarly, the flat utility rate will increase from $20.79 to $21.35 per month on all active accounts.

Elsewhere, the proposed 2022 budget for the solid waste department is approximately 1.4 percent or $36,000 higher than the 2021 approved budget. A Solid Waste Operator position is proposed to increase from a casual to a full-time position.

Council will discuss the proposed Operating Budget, Capital Budget and 10-Year Capital Plan at the Budget Workshop this November.