City council approved the 2011 operating budget with a 4.9 per cent tax increase and a five per cent franchise fee with FortisAlberta Inc., Dec. 6.
“Council believes this to be a fair budget, considering the $4 million shortfall from ambulance services,” said Mayor Peter Brown. “Service levels have not been cut; council and staff are able to maintain a fiscally responsible budget. The tax increase is a reduction from the original recommendation of a six per cent tax increase and a 10 per cent FortisAlberta franchise fee.”
For a residence assessed at the average value of $342,700 in 2010, municipal taxes were $1,378 in 2010. In 2011, the property would be assessed at $345,495 and the owners would pay an additional $69 per year or $5.75 per month.
Several changes were made to reach the 4.9 per cent increase. Cuts to the budget include:
• Closing the current splash park for the summer of 2011. Chinook Winds splash park is expected to be opened next year.
• Hiring one additional RCMP officer instead of two.
• Reducing the tree planting budget; only dead trees will be replaced.
• Reducing top dressing for City parks.
• Reduction in planned alleyway paving for trouble spots.
• The Citizen Satisfaction Survey will be completed bi-annually instead of annually (the next one will occur in January 2012).
• The contingency fund for large snowfalls remains at a minimal level.
During the budget discussion, City council voted not to cut a study to research the possibility of attracting a post secondary institution to the City at a cost of $20,000.
FortisAlberta has not paid a franchise fee in the past to the City of Airdrie. The five per cent fee will add $2.10 per month to the average residential power bill commencing March 1, 2011. This calculation is based on 625 kilowatt hour (kW-h) consumption in 30 days.
“Franchise fees apply to a slightly different customer base including renters, schools, churches, senior’s facilities and federal and provincial governments that are exempt from taxation,” said Jana Jaeger, the City’s director of Corporate Services. “It helps to spread the burden to more than just the property owner.”
Alderman Kelly Hegg was originally against the franchise fee, calling it a “hidden fee.”
“Now that it’s been discussed, citizens are well aware that this is an option and it is not so hidden anymore,” he said.
Alderman Glenda Alexander said the fee was necessary.
“$2.10 per month, that’s a cup of coffee,” she said. “We are cutting back on some important services and I feel this is a good way to get revenue to provide services to the city of Airdrie. I do agree to five per cent, I would have agreed to 10.”
The full budget document is currently being prepared and is expected to be published mid-January on the City of Airdrie website at www.airdrie.ca
