Budget Debate - COW starting November 25, 2024
Mayor Heron is hoping to get through all our budget motions on Monday afternoon. Fingers crossed. It’s wild that this will be my 8th & last budget debate with the city!
Committee of the Whole (continued) agenda highlights
Our last few budget meetings gave us time to ask questions about the proposed 2025 budget. Highlights of that proposal include:
An “Operating net Budget of $142.2 million, result[ing] in a 4.0 per cent property tax increase or an increase of $34 per year per $100,000 assessed value”.
A Capital budget that includes 35 projects for a total of $55.7M.
A Utility budget, which uses a cost-recovery model, that will result in a “$11.27 (7.2%) rate increase based on the typical monthly household utility bill ($167.78)” We also plan to invest in 9 capital projects in 2025 at a cost of $15.2M.
Based on this proposal, members of council have proposed a few dozen changes. Some of those proposed changes include shifting the cost of projects from the tax base to our Stabilization Reserve, which is meant to stabilize taxes in years that are seeing a <3.5% increase. Although the uncommitted balance of the reserve is $547,700, I am concerned that the 3.5% ceiling in our policy might be too low considering the financial brick wall we’re staring down over the next decade.
I also know that we often talk about the current year’s tax rate as we’re discussing budget motions, but I don’t find that particularly helpful as someone who is thinking about financial impacts long-term. If we’re depleting our reserves to try to reduce 2025 taxes, for example, we might be pushing expenses down the line so we see even higher tax increases down the road. Or - we might get to a point where we can’t fund unexpected expenses or important projects, like the swimming pool I’d love to see built in the next decade. Just because we can reduce taxes by a dollar here or there doesn’t mean we should - I don’t want my kids & grandkids left with an unsustainable system.
Below is an incomplete version of how I generally organize my thoughts when I’m going into a more prolonged debate. I’ve summarized the motions, often in my words so I better understand what I’m weighing in on, made note of the impacts on spending (either increases to add service or decreases to remove projects) which may or may not align with the actual motion wording, and made some high-level comments. For anyone wanting to know the actual wording/impact of various motions, please see our agenda package or the list of budget motions on the City’s site. I also sometime surprise myself - Even for motions where I’m strongly leaning one way or another, I’ve been known to change my mind. I suspect Monday will bring some interesting conversations.
This is a brief and incomplete overview of our meetings, with my personal comments sprinkled in - In no way are my opinions representative of the official direction of council or the City of St. Albert. Please let me know of any typos or errors. Members of the public can register to speak if they have information to present to council. Full agenda packages can be found on the stalbert.ca website.
