Council approves capital and operating budget for 2019-2021

By Miriam Ostermann, Associate Editor

Strathmore town council has voted to adopt the 2019 long-term financial plan, the 2019-2023 capital budget and the 2019-2021 operating budget.
Budget highlights include a total capital budget of $11.8 million, a total balanced operating budget of $37 million, a contribution to reserves for long-term fiscal sustainability and the introduction of a seniors’ rebate program – focusing on fixed and low-income home-owning residents over the age of 65.
The capital budget includes the new town hall, infrastructure renewal and Kinsmen Park enhancements, while the operating budget includes the Strathmore Motor Parks Sports Centre and increasing public works coverage for snow management.
According to the town, the budget was created with considerations for continued maintenance for infrastructure and the need to contribute to reserves. The loss of funding from the municipal sustainability initiative (MSI) is also estimated to have a nearly $700,000 impact. In turn, council voted on the mid-sustainability option of three considerations when adopting the 2019-2021 operating budget, that would result in a 4.9 per cent increase of residential tax – or $7.11 monthly based on a $300,000 property assessment – a 6.9 per cent increase of non-residential tax – or a monthly increase of $117.58 based on a $3 million property assessment – for a total tax revenue of $18, 197,167.
“We’ve really kept property tax increases as low as we could in the last eight to 10 years… but at some point, we have to move the town forward and we are really trying to do that in a reasonable fashion,” said Mayor Pat Fule. “We’ve added a lot of new buildings (and) a lot of new services. I think we need to move this town forward and this option that’s in the motion will do that. It will also offer predictability to residents and especially businesses.”
While annual property taxes jumped to $2,546 in 2018 from $2,439 in 2017, taxes took a nosedive in 2015 to $2,393, down from $2,529 the previous year, resulting in only a $17 dollar increase from 2014 to 2018.
According to the town’s director of corporate services, Mel Tiede, Strathmore faced some budget pressures over the past few years that included new employment standard legislation, paying more for overtime, continued RCMP cost increases, new aquatic standard legislation and the Strathmore Motor Sports Centre operating costs – increases that total roughly $1 million in added costs to the town.
When the long-term financial plan was discussed at the regular town council meeting on Dec. 19, council was informed the plan cites an infrastructure deficit of $44 million with $250 million in tangible capital assets, and that current replacement costs for the Family Centre, Aquatic Centre and Civic Centre is estimated at close to $50 million.
Councillor Denise Peterson said the $44 million infrastructure deficit is a result of failing to bolster the reserves and decisions that were made over 20 years ago with the $30 million water treatment plant and another $30 million by accessing water from Calgary.
“All those things, I think, should make this council very mindful that the decisions that we make today are going to impact 20 years from now, and that’s why I’m so partial to making sure that we put money into the reserves,” said Peterson. “When we look at that $44 million infrastructure deficit, not looking after that by putting money into reserves could create a hugely painful tax hike in the future if in the event of some infrastructure failure.
“I’m very pleased to see sensitivity to the most marginalized in our population, which are seniors on fixed incomes who are greatly impacted by CPI and cost-of-living increases.”
The 2019 budget adjustments also instigate a 2019 hiring freeze – following any positions authorized in the budget – allocating an additional $100,000 to reserves while retaining current service levels and incorporating a grant funding request for the gymnastics club.
Councillor Bob Sobol also emphasized the council’s desire to create a more vibrant and active community through enhanced community facilities and higher quality of services.
“These were issues that were derived by us, were pushed by us and they all cost money, so this year a raise in the proposed tax increase comes as a result of many of these initiatives and especially as a result of the new sports centre,” said Sobol. “Our municipality’s goal is to increase our population, which in turn will attract more businesses and industries in making our facilities operate in a more cost-effective manner. (And) also be able to put some money away for future enhancements or building equipment replacements, and to make sure that residents really do find our community as a place they want to live.”
The 2019-2023 capital budget outlined administration costs at $4.6 million, fire services and emergency services at $250,000, recreation at $2.2 million, common services at $1.3 million, roads to receive $931,600 and water at $1.3 million.
“While I do not like the idea of increasing taxes, it is important to build reserves so that we are not leaving a big bill for the future to come up,” said Councillor Jason Montgomery.
For more information, the budget breakdown and a copy of the 2019 approved operating budget, capital plan and long-term financial plan, visit strathmore.ca.