By rdnewsNOW Staff

Budget Realignment

Lacombe city council approves spring adjustments to Budget 2022

Apr 13, 2022 | 3:31 PM

Lacombe city council has approved spring adjustments to the 2022 Budget.

City officials say the proposed amendments align with a tax increase of 2.7 per cent and 1 per cent for a Special Paving Tax approved for the 2022 Budget, adopted at the Dec. 6, 2021, council meeting.

“The spring adjustment process ensures council is fulfilling its economic promises to residents,” said Mayor Grant Creasey. “These approved adjustments are a way to keep the municipal budget process open and transparent, and aligns with council’s goal to keep tax increases below inflation.”

Officials say the spring adjustments included a Common Services reallocation in the 2022 Operating Budget year, which had no net tax impact on residents. In prior years, Common Services Department operational costs (such as utility costs of the public works building and portions of the Roads & Fleet Manager’s wages, for example) were reallocated to all other departments based on the amount of fleet equipment utilized.

The 2022 Operating Budget (and future budgets) is said to include all costs associated with Common Services.

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Officials say individual departments will budget for the actual expenses for gas, fuel, oil, insurance, equipment and vehicle maintenance and repairs, for the fleet and equipment they operate. The utility department, meanwhile, will continue to be charged back overhead of the common service operations.

Contributions to the fleet reserve will continue to reside in the Common Services Department, based on a 10-year average, to cover the cost of their required fleet replacements.

City officials say this budget realignment has no impact on the overall budget.