Airdrie City council gave the seal of approval to the municipality’s operating and capital budgets for 2023 during its regular meeting on Dec. 5, ushering in a 5.97 per cent tax increase for 2023.
The meeting marked the last stage of the 2023 budget process, after deliberations took place over two Council Budget Committee (CBC) meetings on Nov. 24 and 25. As per CBC’s and the administration’s recommendation, the overall operating budget for 2023 is $187.7 million.
The budget includes $137 million to deliver tax-supported municipal services, and $50 million to deliver water, sewer, and waste management services.
According to Shannon Schindeler, acting director of corporate services at the City, the recommended operating budget maintains services for the public in the best way possible and in line with corporate strategy.
“With increased cost pressures coming from the economic conditions of today, [the budget] continues with the fiscal strategy of building capital reserves,” she said during the meeting, adding the remaining gap will be bridged with the general operating reserve dollars and a municipal tax increase.
She added that following the recent budget deliberations, a $4.7 million deficit existed, which could be covered by a combination of general operating reserves in the amount of $553,500 and via a 5.97 per cent tax increase. The operating reserve dollars will be used to fund one-time projects, according to Shindeler.
“For clarity, these funds will be directed to the General Operating Reserve at the end of this fiscal year, using a portion of the projected 2022 surplus,” she said. “This then leaves a need to raise an additional $4.1 million in tax revenue, which equates to a 5.97 per cent tax increase.”
As per the 2023 operating budget, $690,000 will be allocated towards the General Capital Reserve.
With regards to a tax increase, residents are assured the increase should only account for a slight uptick in individual property taxes. Airdrie homeowners with an average assessed property value of roughly $420,000 can expect to pay $9.87 more on their monthly property bills next year.
Shindeler stated administration will look for opportunities to alleviate the tax burden in the spring.
“Administration will continue to monitor the economic conditions as well as the potential for increased dividends and bring forward any options for further decreasing this tax increase with the tax rate bylaw in May,” Schindeler said in the meeting.
Utility rates have also increased in 2023, with the average bill expected to increase by $13.69.
“These increases are mainly due to the recently negotiated cost of service study with the City of Calgary, which addresses increasing costs as well as significant capital needs,” Schindeler said.
The municipality’s capital budget was also approved during the Dec. 5 meeting, adding up to around $67 million, including funds allocated towards new facilities, public works redevelopment, new site development, several roadway rehabilitation projects, and a new fire truck.
Schindeler said capital projects are anticipated to grow significantly in the coming years to address the growing needs of the municipality. She said administration will meet with council in the new year to discuss the advantages of planning a multi-year capital budget.
“Projects can be more realistically planned and budgeted, which will provide more clarity for the public in the future,” she said.
With regards to next year’s tax increase, Mayor Peter Brown said in a previous interview that it is a significant amount, but added the municipality is facing the same challenges as other Cities and Towns in 2023.
Like other municipalities, Brown noted the City of Airdrie is facing high inflationary pressures this year, as the cost of living has seen 40-year-high increases in 2022. The Town of Cochrane and Rocky View County have also suggested tax increases in the four to six per cent range to account for inflation this year.
What most concerns Brown at the moment is what Airdrie's capital budgets will look like in the years to come, as the municipality prepares for a slate of large-scale infrastructure projects.
The City is already committed to building a new library and multi-use facility – which faced rising costs this year – and is hoping to build a new recreational centre on the west side of Airdrie, as well as a fourth fire hall, and a new regional park in the northeast.
“I’ve been struggling with this for quite a few weeks because as many of you know, I voted against [the budget during the CBC deliberations],” he said during the Dec. 5 meeting. “I couldn’t believe how much it’s grown since we started [the process].”
He said he needed to take time to step back and better understand the numbers and associated increase facing the municipality.
“From my perspective, I’ve been very fortunate to work in an organization where trust is paramount,” he said. “I implicitly trust the people that supply this data – the information I’ve gone through. I'm comfortable with it.”
Brown added though he will be supporting the budget as presented, the City has “a lot of work to do” to better understand the fiscal responsibilities to the community, residents, and businesses.
“I’m taking a leap of faith and I know it’s going to be well received,” he said, adding thus far, he hasn’t had a lot of negative feedback from community members.
—With files from Scott Strasser/Airdrie City View
