Airdrie residents shouldn't see much change to their municipal taxes next year, after City council unanimously approved the 2021 operating and capital budget Dec. 7.
The budget includes slightly less than $159 million in operating expenses – a 0.02 per cent increase from 2020 – and a $17.11 million capital budget.
Considering the City was projecting a $2.5 million deficit due to the financial impacts of the COVID-19 pandemic, Mayor Peter Brown commended City staff for bringing forward a balanced budget.
“Extraordinary times call for extraordinary people to do extraordinary things, and our organization is no exception,” he said. “Every business unit we have within the City of Airdrie has done an exemplary job of looking at their [operations], how they can save money, how they can do things differently and how they can be more effective and efficient on behalf of our residents.”
The budget was presented by Lucy Wiwcharuk with the City’s Corporate Services department, after it had been deliberated and endorsed by the Council Budget Committee (CBC) in November.
“The CBC-recommended operating budget addresses the effects of the pandemic and deals with significant revenue loss and increase in expenditures,” she said. “It maintains services for the public in the best way possible, considering the provincial restrictions. Expenditures needed to deliver municipal services have been reduced where possible, and mitigation has been incorporated to help get through a difficult 2021.”
Municipal revenue from taxes has been maintained, according to Wiwcharuk, resulting in a net-zero proposed tax increase. However, she said residents can expect to pay slightly more for various fees, such as utilities, electricity, licensing and franchising.
In total, Wiwcharuk said it will cost approximately $42.1 million for the City to provide utility services in 2021. She said the water flat rate will remain the same, the sewer variable rate has been reduced and the water variable rate and sewer fixed rates will be increased. Waste and Recycling services, meanwhile, are also included within the utility budget, and the rates will remain unchanged compared to 2020.
“The CBC-recommended utility budget, with $42.1 million projected to operate water, sewer and waste services, [means] the average bill will rise to $121.31 from $116.79, or $4.52,” she said.
The City’s budget also sets aside approximately $17 million for capital projects, which Wiwcharuk acknowledged is much less than previous years. However, she noted the projected 2022 and 2023 capital budgets will see significant increases in areas of transportation and community services, including the construction of a new library and fire hall, which are expected to be built between 2023 and 2025.
According to Wiwcharuk, the budget’s effect on an average Airdrie household, assessed at $385,000, will be an increase of $76 per year, compared to 2020.
COVID-related revenue losses for 2021 will equal about $5.55 million, according to the City. Additional expenses related to the pandemic are expected to cost the municipality $574,000.
"Expense reductions of $3.5 million have been made to offset COVID-related losses," the City stated in a press release. "Government operating relief dollars of $1.8 million as well as $1.3 million from the City’s General Operating Reserve have been used to help bridge the budget gap."
As the budget had already been deliberated by CBC in November, councillors approved the budget unanimously with little discussion.
“[I want to echo] the thanks to staff for really recognizing the situation everyone is in right now and responding as best as they could,” said Deputy Mayor Tina Petrow.
In addition to the budget, council also approved a series of fee adjustments Dec. 7, including a two per cent franchise fee increase for FortisAlberta, a $1 increase for animal licensing and a $25 increase for the minimum accessory development fees for building inspection permits.
Scott Strasser, AirdrieToday.com
Follow me on Twitter @scottstrasser19
