After years of low property-tax increases, Airdrie residents will be paying 8.47 per cent more in 2019. Airdrie City council approved a $150-million operating and $20-million capital budget for 2019 at its Dec. 3 meeting.
“There will be an additional $4.7 million raised through taxes, and that translates to the 8.47 per cent increase,” said Lucy Wiwcharuk, City of Airdrie director of corporate services and chief financial officer.
For the average taxpayer, the increase amounts to $144 per year, she added. An increase of two per cent to the FortisAlberta franchise fee, also approved by council Dec. 3, will cost the average homeowner an additional $15 per year.
But it’s not all bad news, as utility rates will decrease in 2019 by 5.24 per cent – or $90 per year for the same taxpayer – resulting in a net increase to the homeowner of $69 per year.
Airdrie Chamber of Commerce (ACC) president Glenn Smaha said he has concerns with how the increase may impact local businesses. “When businesses are looking to reduce head counts, or offering wage freezes or wage cuts, there are certain things that are being considered [by council] that I think are being taken for granted – like a cost of living increase,” he said. During recent budget deliberations, City administration recommended staff should receive a two per cent cost of living adjustment (COLA), something Smaha said he thinks, “shouldn’t be a foregone conclusion” when unemployment is impacting so many residents. In spite of the concerns voiced by Smaha and the ACC, City council approved the property tax increase at its Dec. 3 meeting (see story here). Included in that budget is a 1.5 per cent COLA for City staff.More than half of the new revenue collected from the tax increase – 5.18 per cent – will go to protective services, allowing the municipality to hire two additional RCMP officers, four new firefighters and five new RCMP administration staff. Two per cent – or $1 million – will be put to the Tax Stabilization Fund, which council established in 2015 as a way to prepare for operating expenses that will come with new facilities, such as a new recreation centre or library.
Additionally, administration prepared projected capital budgets for 2020 and 2021. These budgets are much higher, Wiwcharuk said, because of the planned construction and opening of a new library building in those years, as well as significant roadwork on Yankee Valley Boulevard, including an underpass at the rail tracks. The 2020 capital budget is projected to be $103 million. The 2019 capital budget also includes funds for required roadway rehabilitation, lifecycle replacement costs and underground infrastructure work on Main Street, Wiwcharuk added. “I think it’s a time to be prudent and a time for leadership,” Smaha said. “We need to send the right message to our residents and their local businesses when it comes to how they’re going to manage their funds.” He added ACC was not against increased funding for necessities, such as enforcement and emergency services, but said he questioned whether now was the time to be investing in some proposed capital projects. “As an example, a second recreation centre would be nice to have, but given that versus adequate policing, I know which one I’d pick,” he said. “Given the choice, I think there are certain things that need to be considered for elimination or reduction, when it comes to resources and staffing.” Members of council voted 5-2 to approve the capital and operating budgets, with Mayor Peter Brown and Coun. Al Jones as the dissenting votes. Brown and Jones said they were concerned about the possible negative impact of the tax increase on local business. Council will officially set the tax rate in May 2019.
