Bryan's Budget Blog

New blog

noreply@blogger.com (Bryan Alary) — Tue, 23 Dec 2008 19:02:00 +0000

It's been a tremendously busy two months since council started reviewing the 2009-11 budget. Hundreds of motions and countless hours of questions and debate went into the final residential tax increase of 4.55 per cent.

Covering the budget is a unique opportunity to learn about the City of St. Albert, how it operates, council's goals and the people behind the scenes.

This blog has made it possible to take a closer look at all aspects of the budget, from line-by-line cuts or additions, to expanded comments from civic leaders. That kind of flexibility (and freedom of space) just isn't possible with a regular newspaper story.

I enjoyed the experience so much, I'm going to continue blogging about local civic matters. My new blog, Civic Matters, will give readers more insight, background and and chance to ask questions or provide comments about important local issues.

Look for Civic Matters early in the new year.

Until then, thanks for reading. And happy holidays!

- Bryan Alary

Budget highlights

noreply@blogger.com (Bryan Alary) — Tue, 23 Dec 2008 18:47:00 +0000

2009 operating budget: $103 million

Spending breakdown:

- General administration, 28%

- Culture, parks, recreation, Family and Community Support Services, 27%

- Fire/EMS, 10%

- Police/bylaw, 9%

- Common and equipment pool, 8%

- Transit, 8%

- Roads, streets, sidewalks, lights, 6%

- Planning, development, land and housing, 2%

- Council and legislative service, 1%

- General revenue, 1%

2009-11 capital budget (municipal)

2009: $87.6 million (includes stage three of Ray Gibbon Drive, at $47 million)

2010: $34.7 million

2011: $26 million

Spending by category

Ray Gibbon Drive, 61%

Growth, 19%

Re-investment, 18%

Community enhancement, 2%

Budget wrap: what council said

noreply@blogger.com (Bryan Alary) — Tue, 23 Dec 2008 18:38:00 +0000

Here's a look at how council viewed the 2009 operating and 2009-11 capital budgets. Council approved the budgets late Monday, meaning homeowners will see a 4.55 per cent increase in municipal property taxes next year. Non-residential property owners face a 5.28 per cent increase.

Mayor Nolan Crouse
"Four and a half per cent is OK," he said in an interview. "I call it OK. I do, however feel that because of the [provincial] MSI grant money we're still able to do a lot of good things for the future. Without the MSI money we'd be scrambling for some improvement projects. But with the MSI money it's been a lot easier to show continual improvement for residents."

"Residents are going to see improved services, improved quality of life for a modest tax increase. I still want us to keep the pedal to the metal for Servus Place performance. I still think that's an area of watch for us."

"There's something in it for generally everybody, without it being a 10 per cent tax increase. It's an OK budget."

The mayor isn't about to lose sleep because the budget approval was not unanimous. (Coun. James Burrows voted against). "That's democracy."

Coun. James Burrows
"In all good conscience I will not be supporting this," said Burrows, who was disappointed to see council cut funding for nine new firefighters. The decision means firefighters will have to log more overtime.

"The decision of not hiring these firefighters is a huge, huge mistake. In all good conscience I cannot support the budget because of that decision. I know that if I was a parent [of a child] involved in a car accident and someone was coming off a 14-hour shift who was fatigued, over-worked … that the city council would not be prepared to spend half a million dollars to perhaps save the life of a child is something that just floors me."

Coun. Lorie Garritty
"It's a reasonable tax increase. It's not what some people will be happy with it but I think most people would recognize — particularly if they get into what exactly we're spending the money on, if they take the time to analyze that — I think it's fair.

"It's a compromise We started out at 8.97. We worked hard to get it down to 4.55, with a lot of hard work and good ideas from a lot of people. Mr. Mayor, I think this is a darned good budget."

Coun. Carol Watamaniuk
"Being the only woman in the group here, we've finally given birth to the 2009 budget. It was a well-planned, well-thought out, well-scrutinized, well-analyzed and well-nurtured offspring that I think we came up with.

"I applaud the staff and my colleagues on council. I don't think I have ever witnessed, in all my years on council, such an incredibly hard bunch of work that went into a budget. I applaud all of you."

Coun. Len Bracko
"It's one of the toughest budgets I've ever sat through. I sat through some in the early 90s when we were going through some tough times also."

Bracko was pleased with council's decision to add an extra $1 million for road maintenance.

"It's key that we spend less money now than we do later on in maintaining our road infrastructure."

Coun. Roger Lemieux
"As far as I'm concerned, we took a passionate, intelligent business-like approach [to the budget], especially with the dramatic change in the economy right in the middle of the budget."

Coun. Gareth Jones
Jones made no closing remarks before the final budget vote. However, earlier in the meeting he applauded administration's list of recommendations to cut spending by one percentage point. Jones had indicated he wouldn't support the budget if the tax increase came in above five per cent.

"This is a very positive response to council's request."

Budget curtain call: 4.55% tax hike

noreply@blogger.com (Bryan Alary) — Tue, 23 Dec 2008 03:35:00 +0000

The average St. Albert homeowner will see a 4.55 per cent increase to municipal property taxes next year.

Council wrapped up weeks of debate when it approved the 2009 operating and 2009-11 capital budgets late Monday.

The increase means the owner of a typical $400,000 home will pay $2,442 in property taxes, up $106 from current.

Council approved a 9.5 per cent increase to utility rates. The change represents another $7.06 per month per household.

Commercial, industrial jump 5.28%

Non-residential property owners face an average 5.28 per cent tax increase.

For the owner of a $900,000 warehouse, that represents a tax bill of $9,887, up $515 from current. The tax bill for a $1.8-million restaurant will come to $19,774, up $1,029 from 2008.

Read more about the tax increase Tuesday morning at www.stalbertgazette.com

4.83% proposal

noreply@blogger.com (Bryan Alary) — Mon, 22 Dec 2008 16:34:00 +0000

Council will get a look tonight at administration's recommendations to reduce next year's property tax increase by one percentage point.

If approved, homeowners would see their taxes increase by 4.83 per cent, down from the current 5.91 per cent hike.

The proposal, which council asked for two weeks ago, includes changes on both the revenue and expense side.

Here are some highlights:

- Lower investment income by $732,000

- Save $540,000 by not hiring nine new firefighters

- Add $240,000 in overtime costs for fire department

- Add $286,000 in revenue from higher than expected assessment growth

- Save $150,000 by cutting fuel budget (on top of $375,000 already cut)

- Lower staff benefit budget by $250,000

- Cut $188,900 in operating costs that can be eliminated because capital spending was not approved.

- Drop insurance premiums by $100,000 (the city would be assuming higher risk)

- Cut $87,400 for RCMP staffing from budget to more closely reflect actual officers on staff.

- Save $66,600 by hiring new staff on May 1, instead of April 1.

There are a few more suggestions to cut spending by a few thousand here and a couple thousand there.

Interestingly, the 1.08 point reduction includes the $540,000 for the new firefighter staff. When I spoke with Mayor Nolan Crouse last week about this list of recommendations, he felt the firefighter business case should be separate.

"My guess is [the $540,000] is outside that one per cent," Crouse said. "And it kind of better be."

Council meets tonight at 4 p.m.

City hall payday

noreply@blogger.com (Bryan Alary) — Fri, 19 Dec 2008 21:15:00 +0000

Mayor Nolan Crouse will receive a 13 per cent pay hike next year, while his six peers on council will get a 24 per cent increase.

The raises, which take effect Jan. 1, were included in the 2009 operating budget. The raises set St. Albert council salaries at the 60th percentile of other mid-sized Alberta cities, as per council's remuneration policy.

Crouse will make $84,742 next year, up from $74,983. The six part-time councillors will earn $29,560, up from $23,766.

Compare that to salaries in Wood Buffalo ($103,000 for the mayor, $30,450 for councillors), Medicine Hat ($89,600 and $29,800), Lethbridge ($81,504 and $23,542), Grande Prairie ($78,750 and $29,400) and Red Deer ($76,678 and $24,564).

One third of council salaries are tax free, as per the Municipal Government Act.

Staff get 4.5 per cent raises

Council isn't the only group getting a raise on Jan. 1. Non-union staff at city hall will receive a 4.5 per cent pay hike next year. Council approved the raises after a private briefing on Monday evening.

Read more about council's raises here. Read about staff increases here.

Be fair to business: Lemieux

noreply@blogger.com (Bryan Alary) — Tue, 16 Dec 2008 21:58:00 +0000

Coun. Roger Lemieux does not want to see businesses pay more than their "fair share" for the Servus Place tax levy.

Starting in 2009, commercial and business owners will be asked to pay more per $100,000 of assessment than homeowners. The plan, to be phased over three years, would see business owners pay $55 per $100K of assessment by 2011, compared to $29 for homeowners.

The split levy follows the 86-14 "tax burden ratio" city administration uses to calculate the remainder of municipal property taxes. The ratio ensures homeowners contribute 86 per cent of city tax dollars, despite the fact residential property makes up 91 per cent of all assessment.

Just last week, St. Albert Chamber of Commerce chair Rob LeLacheur called the tax burden ratio a "tax grab," before he urged council to keep the current one-to-one ratio for the Servus Place levy.

Lemieux plans to introduce a motion next week that would accomplish just that. He said a split levy flies in the face of the 2004 plebiscite that authorized Servus Place construction.

"Businesses should pay their fair share, but we shouldn't, in the middle of it all, change the game plan," Lemieux said today. "The game plan is to take away from the residential burden and give it to the business and burden them."

Lemieux, a former business owner himself, believes homeowners will support the idea of sticking up for local businesses, even if it means slightly higher taxes.

If his motion is approved, the residential tax increase would jump to 6.04 per cent, up from 5.91 per cent.

Business owners would see their tax increase fall to 6.83 per cent from 7.55 per cent.

Council will debate the motion once it's formally moved on Dec. 22.

Dollars and (per)cents

noreply@blogger.com (Bryan Alary) — Thu, 11 Dec 2008 18:25:00 +0000

St. Albert's percentage tax increase of 5.91 per cent might be lower than Edmonton's 7.3 per cent, but when looking at actual dollar amounts, taxpayers here stand to pay more. (That's what happens when St. Albert taxes are already the highest in the region).

Here's what St. Albert taxpayers would pay in municipal property taxes, should the 5.91 per cent residential and 7.55 non-residential increases hold up.

Municipal taxes in St. Albert would be $2,473.84 for a typical $400,000 home in 2009, up $138 from current.

According to the Edmonton Journal story, municipal taxes would be $1,470 a year for a $400,000 home in Edmonton, or an extra $50 compared to 2008.

Without a tax rate for Strathcona County it's tough to make a similar comparison. The Sherwood Park News story says the "average household" would pay an extra $105 annually in municipal taxes.

St. Albert commercial and industrial

The owner of a commercial or industrial property worth $900,000 would pay $10,395.40 in 2009, up $729.76. For a $1.8-million property that works out to $20,790.79 in taxes next year, up $1,459.

St. Albert council continues budget deliberations on Dec. 22.

Edmonton, Strathcona County at 7.3%; Morinville at 5.5%

noreply@blogger.com (Bryan Alary) — Thu, 11 Dec 2008 15:55:00 +0000

Edmonton city council has completed its budget deliberations, with the majority approving a 7.3 per cent tax increase. See story in today's Edmonton Journal.

The Sherwood Park News reports taxes will go up 7.37 per cent next year in Strathcona County. County councilllors cut the hike from an original 9.03 per cent. Read more here.

Want to bet at least one St. Albert councillor will make reference to these figures when budget proceedings wrap up here on Dec. 22? St. Albert's increase is down to 5.91 per cent, by the way.

Meanwhile, just north of St. Albert, Morinville town council has approved a 5.5 per cent tax increase. That represents an extra $129 next year for the typical $300,000 home. (Full details can be found in Wednesday's print edition of the Gazette).

And, Sturgeon County council has cut the tax hike there to 4.28 per cent, down from 7.9 per cent. Budget proceedings are almost complete, with Mayor Don Rigney calling for more cuts. (See Wednesday's Gazette as well).

NABI half-flip

noreply@blogger.com (Bryan Alary) — Tue, 09 Dec 2008 22:57:00 +0000

It did not take long for city council to reverse course (half way) on a decision to cut funding for the Northern Alberta Business Incubator (NABI). They agreed to provide a $25,000 operating grant, half the amount originally requested.

It was just last week that council agreed to cut the $50,000 subsidy. Several members objected to the funding in light of NABI officials admitting they do zero fundraising.

"Every organized non-profit in our community is required to [fundraise]," is how Coun. Carol Watamaniuk put it. "Surely an organization that shows businesses how to run a business can come up with $50,000."

Mayor Nolan Crouse said council gave enough earlier in the year when it helped finance NABI's new building in Campbell Business Park.

Council flip-flopped on the subsidy Monday, after feeling the pressure from NABI directors. Jeanette Bancarz of ATB Financial threw out several noteable stats to help with the persuasion.

Of the 61 businesses that have graduated from NABI, 39 still operate in St. Albert. Bancarz said that represents more than 200 jobs. Those businesses will pay $88,000 in taxes, while NABI itself will pay close to $50,000.

If council wants to achieve its economic development goals, members should "let NABI do its thing," she said.

The speech convinced several councillors to change their minds (Roger Lemieux, Gareth Jones and Lorie Garritty). Well, they agreed to provide a half the subsidy, at any rate.

Councillors Len Bracko and James Burrows continued their support for NABI. Watamaniuk and Crouse opposed the subsidy.

Discount transit

noreply@blogger.com (Bryan Alary) — Mon, 08 Dec 2008 21:37:00 +0000

Earlier in the budget process, a local resident asked council to cap bus passes at $20 for persons with disabilities.

Council later heard St. Albert Transit does not provide discounts for customers with disabilities. City manager Bill Holtby said there are no direct subsidies for transit, though AISH recipients can choose to pay for transportation needs with money they receive from the province.

In contrast, Strathcona County does provide discounts for persons with disabilities. AISH recipients pay just $20 a month. According to the Sherwood Park News, a county councillor has recently floated the idea of free transit passes for seniors.

http://www.sherwoodparknews.com/ArticleDisplay.aspx?e=1332441

5.87 per cent - UPDATED

noreply@blogger.com (Bryan Alary) — Fri, 05 Dec 2008 21:31:00 +0000

Homeowners face a 5.87 per cent increase on their property tax bills next year, after council made several spending cuts and a few additions on Thursday. Commercial and industrial property owners face a 7.51 per cent increase next year.

The residential increase is down three full percentage points from the hike proposed in the original draft 2009 operating and 2009-11 capital budget.

Next year's operating budget is largely set, save for one request to hire nine new firefighters. Council won't debate that $540,000 expenditure until Dec. 22, when the fire chief is available.

In theory, the tax increase could fall to 5.03 per cent if council turns down the staffing request. (And boy is that one complicated decision — read more in Saturday's Gazette). If the positions are approved, the increase will remain at 5.87 per cent.

During the same Dec. 22 meeting, council will also decide whether to put the AltaLink power line into the unfunded list in the 2009-11 capital budget. That has no tax implications.

Here are a few highlights from Thursday:

• Add $425,000 in spending over 2009-10 to build washroom facilities in Riel Recreation Park

• Cut $50,000 from the contract and general services budget at Servus Place

• Cut $60,000 for an RCMP internal review

• Cut $50,000 from the Servus Place sponsorship renewal program

• Cut $154,000 from staff training and development (corporate-wide)

• Use grants to pay for $135,000 in environmental master plan initiatives

Several motions were defeated:

• Hold council salaries to 2008 levels

• Cut tax-supported capital funding by $650,000

• Cut $200,000 from the materials budget at Servus Place

• Add $173,000 in revenue at Servus Place

After considerable fussing about wordsmithing, Coun. Gareth Jones withdrew a motion to cut the base budget by 1.5 per cent.

Finish line in sight

noreply@blogger.com (Bryan Alary) — Thu, 04 Dec 2008 14:15:00 +0000

Four visits to the mall.

Twelve council meetings.

100 motions.

Zero fist fights.

Equals one civic budget.

Save for a few motions left for Dec. 22, council tonight could pretty much wrap up the 2009 operating and 2009-11 capital budget.

All but a handful of outstanding motions remain, most of them focused on Servus Credit Union Place. Mayor Nolan Crouse wants to raise revenues and cut spending, removing the "conservatism" he says administration built into the budget.

Crouse also wants to use surplus dollars from 2008 to fund $125,000 of the $150,000 in next year's budget for 150th anniversary celebrations.

There's also a motion about what to do with the AltaLink power line.

Cut capital?
The last motion up for debate should be interesting. The mayor wants to change how capital projects are funded, using as many unallocated grants as possible instead of tax dollars (also called pay-as-you-go).

Crouse said his goal is to lower the property tax increase. The only way he do that is by eliminating the annual infusion of tax dollars that go into the capital fund. That creates problems for the entire 10-year capital plan.

Let me explain. Every year the city transfers about $12 million from operating (taxes) into the capital fund. The city calls this tax infusion the "capital envelope."

Of the $12.6 million in 2009, roughly $3 million will go toward actual capital projects, $4 million into reserves for future projects, while $5 million will pay off debt.

Administration has already advised against cutting the capital envelope for a one-time tax savings. Dean Screpnek, the city's CFO, says such a move would set back the entire 10-year capital plan.

The capital plan, by the way, lists $730 million worth of projects. The city only has $475 million in identified funding.

The mayor will have to make a mighty convincing pitch to convince three other council members to vote his way. Given how Crouse was outvoted recently on the extra $1 million for road maintenance, one might argue he'll be in tough.

The budget meeting starts at 4 p.m. I'll post an updated tax increase as soon as proceedings wrap up.

Curbside recycling added

noreply@blogger.com (Bryan Alary) — Wed, 03 Dec 2008 17:55:00 +0000

St. Albert residents are one step closer to curbside recycling pickup next year.

Council voted 4-3 to add curbside recycling to the 2009 budget starting in June. The service would cost an extra $4.60 monthly charge per household.

The move would see the average monthly utility bill rise to $86, up from the $81 originally proposed for 2009. Last year, utilities were $74 per household.

Not a done deal

Council is not expected to make a final call on curbside recycling until the new year. That's when they'll receive a list of recommendations for solid waste services. The $4.60 monthly charge is an estimate from a consultant's preliminary findings.

In theory, council could turn down curbside recycling if members found something unfavourable in the final report. If that happens the $81 per month rate would remain.

If council gives the report the thumbs up, administration would begin a public search for a third-party contractor. Service would start June 1.

Recognizing decisions still need to be made, Mayor Nolan Crouse said council should make room in the budget now. Curbside recycling, he reminded, was a hot-button issue during last year's civic election.

"If we do this, we will be addressing one of the biggest concerns our residents have, and one of the biggest opportunities that's ahead of us with the environment."

The vote was close, with Coun. James Burrows leading the charge in favour of the status quo. St. Albert's existing recycling depot, he said, is well-used by citizens. He also disagreed about the public demand for curbside recycling, claiming it's not coming up in conversations at local coffee shops or banks.

"This is not warranted," he said.

How they voted

In favour: Nolan Crouse, Len Bracko, Roger Lemieux, Lorie Garritty

Against: James Burrows, Carol Watamaniuk, Gareth Jones

Tax-o-meter at 6.31 per cent - UPDATED

noreply@blogger.com (Bryan Alary) — Wed, 03 Dec 2008 14:56:00 +0000

Next year's property tax increase has be lowered to 6.31 per cent.

The city's tax-o-meter — a gimmicky term city hall uses to describe what really is an updated spread sheet and bar graph — spit out the latest figure after city council continued its cutting ways Tuesday.

Council formally cut fuel costs by $375,000 and eliminated some $304,000 in Alberta Health Care premiums. They approved another three dozen changes to the operating budget, many smaller cuts or additions.

Here are some highlights:

• Increase police revenue by $200,000 via photo radar (could be through more photo radar operators, increased patrols, lower tolerances, etc.)

• Cut $87,800 from the Riel Recreation Park operating budget, reducing it to $118,000

• Cut $50,000 grant for Northern Alberta Business Incubator, reducing it to zero

• Cut $35,000 from Alberta 55 Plus Games Winter Games budget, reducing it to $150,000

• Cut mayor and council training budgets by $1,000 each

• Cut $5,000 from council's travel budget to attend Federation of Canadian Municipalities conference

• Cut $5,000 for idle-free bylaw public awareness campaign, reducing it to zero

As one reader pointed out, council did also endorse new culture and recreation fee rates. Arts guilds will see increases next year, but will not pay more than 65 per cent of full operating costs. The fees are as follows:

Potters' guild, $7,500; Painters' guild, $2,000; Floral arts, $600; Quilters, $1,200; Paper arts, $500.

Council defeated a motion to charge $2,000 for studio space used by the Profiles Public Art Gallery for children's art classes. Profiles will continue pay nothing.

Council still has some significant motions to debate Thursday, including whether to cut Servus Place expenses and raise revenues.

The debate over delaying the addition of nine firefighters has been put over until Dec. 22, when the fire chief is available.

Tax hike at 6.99 per cent

noreply@blogger.com (Bryan Alary) — Tue, 02 Dec 2008 15:43:00 +0000

St. Albert homeowners face a 6.99 per cent tax increase next year, after council trimmed away at several staffing positions Monday.

Next year's property tax hike officially sits at 8.05 per cent, down from the 8.97 per cent first proposed.

Council is expected to reduce that to 6.99 per cent when they approve revised fuel forecasts and delete Alberta Health Care premiums for staff. Both are considered formalities.

The property tax relief came after council cut eight budget requests for staffing at Monday's budget meeting. The cuts affect everything snow and ice removal and road maintenance in public works to fundraising for Servus Place, the 150th anniversary and other events.

The tax hike could be reduced even more following tonight's budget meeting, when council begins debating the rest of the operating budget.

The meeting starts at 4 p.m.

Mayor appeals for cuts

noreply@blogger.com (Bryan Alary) — Sun, 30 Nov 2008 17:26:00 +0000

The mayor is the public face of city council. He chairs the meetings, works full-time and attends pretty much every event of significance in St. Albert.

But when it comes to trimming next year's near 8.97 per cent tax hike, Nolan Crouse is just one vote among seven.

Sometimes the votes don't go your way.

That was the case Saturday, when council approved $1 million to top up road maintenance next year. The extra spending — which city engineers did not request — will be funded with a mix of grants and tax dollars.

In the lead up to Saturday, council had managed to trim $245,000 worth of tax-funded projects from the 2009-11 capital budget. In theory, that's money they could have cut from the capital fund to reduce next year's tax increase by 0.4 per cent.

Coun. Len Bracko had other ideas when he said council should increase infrastructure spending by $1 million. With some $3 billion in infrastructure assets, the city doesn't put near enough dollars into maintenance, he argued.

Crouse, however, strongly objected to putting dollars into a pot "without any level of specifics."

But aside from Carol Watamaniuk, the mayor was alone on this one, and clearly frustrated.

Just minutes later, while defending a motion to cut $200,000 for a backup disaster recovery site, Crouse delivered a pointed speech.

"We must, sooner or later, make some tough decisions," he said. "We were at 8.9 per cent and any of the pay as you go (tax dollars used for capital projects) we freed up, we continue to find ways to spend."

He later added this lecture: "I need to remind council of our priorities. I clearly think we need to make tough calls."

Council begins debating staffing requests on Monday. They'll resume committee of the whole budget deliberations after the regular council session.

Bypass needed

noreply@blogger.com (Bryan Alary) — Sat, 29 Nov 2008 18:43:00 +0000

The City of Red Deer wants $107 million from the province to pay for a $133 million northern bypass.

While this isn't exactly related to St. Albert's 2009 operating or 2009-11 capital budget, it's an issue that relates to our local history. I suppose there's a slight budget tie in with the $45 million in the 2009 budget for stage three of our bypass, Ray Gibbon Drive.

Perhaps Red Deer will be able to swing a similar deal with the province.

Reserves aren't free

noreply@blogger.com (Bryan Alary) — Sat, 29 Nov 2008 16:30:00 +0000

With $130 million at stake, it's a heady task to prioritize which capital projects deserve to be in the 2009-11 budget. Sometimes the funding source is the deciding factor in the debate.

During capital budget debates this week, council members scrutinized how each project could be funded. Capital projects and equipment are funded with a mix of government grants, reserves, property taxes, offsite levies and, in rare instances, debt.

Council took keen interest in whether projects could be funded with grants, reserves or pay as you go (a fancy term for tax dollars that are set aside annually for capital projects).

Coun. Lorie Garritty defended the construction of a $140,000 dog park, arguing it won't cost taxpayers because the money is coming from reserves. (And a $10 hike to dog licence fees will eventually replenish the account).

Alternatively, reserves sometimes come into play when council does not want to support a project.

Mayor Nolan Crouse used reserves as part of his rationale for not approving two projects this year — extra funding for the St. Albert Housing Society's $19-million apartment building project, and the AltaLink relocation. Of the later, he said council would have to raise taxes to replace the $450,000 needed.

(I do not mean to single the mayor out, but those are the two most recent examples. And by the way, council did give the housing society $150,000 for that project, about $90,000 less than requested).

The whole idea behind a reserve is to accumulate cash to avoid a large single-year tax hit. Depending on the type of project, reserves are funded through developer levies, utility fees or taxes. Some $2.7 million in property tax dollars will be transferred to reserves next year for future capital needs.

Crouse and Garritty both have a point. Reserves do not immediately cost the taxpayer, but in the long term there can be a cost impact.

Reserves are not free.

Spending cuts, additions

noreply@blogger.com (Bryan Alary) — Fri, 28 Nov 2008 21:28:00 +0000

Council started debating the 2009-11 capital budget this week. The debate continues Saturday morning with the capital budget and staffing requests on the agenda.

Here's a list of changes council has made so far.

• Add $400,000 for the community tourism strategy (approved)

• Add $160,000 for a community recognition tribute in the downtown (approved)

• Add $75,000 for upgrades to the Mission tennis courts (approved)

• Delete $371,200 for affordable housing (approved - St. Albert Housing Society has already committed to raising this money)

• Delay $275,000 for St. Albert Place repairs by one year (approved)

• Delete a $200,000 study for a satellite public works shop (approved)

• Delay $44,000 for a municipal enforcement officer patrol car until 2011 (approved)

• Delay $25,000 for murals in Servus Place until 2010 (approved)

A few motions to cut funding were defeated:

• Delete $135,000 for civic building security upgrades

• Delete a $27,000 truck purchase for Fountain park pool (defeated)

Fuel savings

noreply@blogger.com (Bryan Alary) — Thu, 27 Nov 2008 04:24:00 +0000

Declining fuel prices could save the city $375,000 in 2009. That could lower next year's 8.97 tax increase by about 0.6 of a percentage point.

The savings is due to the administration revising its fuel forecast, lowering it by 25 cents to $1.25 per litre. The original estimate was calculated several months ago, before the price of crude went into the tank.

The $375,000 in savings are based on 1.5 million litres of consumption.

Mayor Nolan Crouse introduced a motion at tonight's budget meeting to make the fuel forecast official. It still needs to be debated, likely next week, but really is just a formality.

Debate begins

noreply@blogger.com (Bryan Alary) — Wed, 26 Nov 2008 00:06:00 +0000

Officially, city council was not supposed to begin debating the 2009 budget until Wednesday.

However, council informally kicked off debate on Saturday after members traded words with two separate organizations.

The first came when St. Albert Taxpayers' Association president Lynda Flannery presented her organization's views about civic spending and the proposed 8.97 per cent tax increases.

Flannery recommended council to cut spending by reducing staffing positions and growth-related capital projects. She criticized both the city's use of the municipal price index and municipal comparators as justifications for increased spending.

With the economy slowing, Flannery said the city should hold off on completing stage three of Ray Gibbon Drive until development begins in the annexed lands. She also recommended slowing down recruitment for fire hall No. 3 until growth picks up.

The Riel Park reclamation work also fell under the association's scrutiny. Flannery said the city should proceed with landfill capping and grading in the area, but not the $6.8 million needed to return areas like the soccer and rugby club back to their original state.

Coun. Lorie Garritty applauded the association for providing feedback about the civic budget. However, he took the opportunity to rebut several of the association's suggestions, particularly for Riel Park.

Normally, that kind of rebuttal is not tolerated by the chair. Council debates council, not public appointments.

Later the same meeting, Mayor Nolan Crouse participated in a debate of sorts about the need for a $20-million branch library. The mayor said the proposal — which is not contemplated for at least three years — does not add up when looking at a 10-year decline in library membership and visitors.

While it would be an overstatement to call the subsequent exchange with library board chair Kelly Aisenstat "heated," it was more tense than most placid dialogue at council meetings.

It concluded with the mayor asking the library board to "invite me to the library when it's full."

At least council is warmed up for what could be several more hours of debate.

Mirror, mirror

noreply@blogger.com (Bryan Alary) — Sat, 22 Nov 2008 15:25:00 +0000

Residents are facing an 8.9 per cent tax increase and a hike to utility rates that is near double digits.

We're talking about St. Albert, right?

Nope, Strathcona County.

According to the Sherwood Park News, Strathcona County is looking at an 8.9 per cent property tax increase, and 9.9 per cent utility rate hike.

That's rather close to St. Albert's 8.97 per cent tax hike and 9.0 per cent utility rate increase.

One wonders if the parallel is due to similar budget assumptions, such as sharing the same municipal price index.

Given the 13 per cent Edmonton is facing, it appears times are tough in the region.

Cash flow, round three

noreply@blogger.com (Bryan Alary) — Fri, 21 Nov 2008 22:13:00 +0000

City council has raised a scalpel toward next year's 8.97 per cent property tax increase.

By Tuesday, more than 60 motions were raised to cut or add funding. The cuts amount to $2.7 million for 2009 alone, with other capital changes proposed in 2010 and 2011.

Spend thrift

Here's a sampling of recent cuts proposed for 2009. (For past motions click here).

• Cut $371,2000 for affordable housing from the capital budget. (Lorie Garritty). Note: the city previously asked the St. Albert Housing Society to raise the funds, as a condition of $740,000 in grant.
• Cut $200,000 from Servus Place's material, goods and supplies budget (Nolan Crouse)
• Cut $105,800 for Riel Recreation Park operations (Nolan Crouse)
• Cut $100,000 from the snow and ice removal budget (Nolan Crouse)
• Cut $100,000 from Servus Place's contracted and general goods budget (Nolan Crouse)
• Cut $30,300 for a landscape technologist (Nolan Crouse)
• Cut $32,100 from the environmental management system program by reducing proposed staff to a half-time position (Nolan Crouse)
• Cut $25,000 from the 150th anniversary budget (Len Bracko)
• Cut $25,000 for murals at Servus Place (Roger Lemieux)

• Cut $20,000 for SmartDriver program (James Burrows)

More cuts

A few motions targeted significant capital spending beyond 2009:
• Cut $2.4 million from the 2010 capital budget for Riel Park landfill reclamation (Nolan Crouse)

• Cut $1.4 million from the 2010 utility capital budget for Riel Park remediation (Nolan Crouse)

Hold off

Council also made a few motions to delay spending:
• Defer for one year $216,200 from snow and ice control budget (Len Bracko)
• Defer for one year $225,000 for a tandem truck/snow plow (Len Bracko)
• Defer for one year $400,000 for St. Albert Place upgrades over 2010-11 (Nolan Crouse)

Spend more

Council members also introduced motions to increase or fast track spending:

• Fund $88,500 for RCMP youth asset development officers starting in 2009, not 2010; Fund $205,000 for asset development in 2010, not 2011 (Lorie Garritty)

• Fund $25,000 for a train whistle bylaw (Nolan Crouse)

All motions will be debated starting Nov. 26.

Debt solutions?

noreply@blogger.com (Bryan Alary) — Thu, 20 Nov 2008 15:34:00 +0000

What to do when faced with a double-digit tax hike? If you're Edmonton Mayor Stephen Mandel, the answer is simple: take on debt.

Mandel this week unveiled a unique plan cut Edmonton's proposed tax hike to 2.6 per cent, down from the 13.1 per cent proposed.

Using debt in more creative ways has also been discussed in St. Albert, where city council was briefed at a committee meeting a few weeks ago.

Corporate services GM Dean Screpnek said at the time the city could inject $50 million into the 10-year capital plan without adding a dime to tax bills. The plan identifies $730 million worth of projects, but the city has funding to complete less than half.

By borrowing the city could shift dollars that it normally would put into the capital fund each year and use that money for debt financing. The $50-million sum was based on debt payments (principle and interest) of $3 million a year over 20 years.

Granted, the borrowed $50 million is less than the $60 million the city would have put into the capital fund over 20 years. But as Screpnek pointed out, with construction inflation factored in over 20 years there's a good chance the city would come out ahead by borrowing and building the projects today.

The added benefit is the city would immediately benefit from the new infrastructure, rather than waiting several years for funds to accumulate.

Of course, every plan has a down side. Coun. Len Bracko can't stomach the idea of handing down more debt to the next generation. The city's debt is already at $1,218 per capita. Bracko has introduced motions not to take on debt as proposed in 2009 for fire station No. 1 ($8.5 million) and stage three of Ray Gibbon Drive ($1.9 million).

This all shapes up for a good debate when council starts reviewing the 2009-11 capital budget next Tuesday.