CANMORE – It is a tight 2019 municipal budget, according to Canmore’s elected officials, but they have managed to find a way to decrease the proposed municipal property tax increase from 6.6 to 4.6 per cent.
It wasn’t without debate, with several hours spent pouring over capital and operational budget options to bring the municipal property tax change for 2019 below a target of five per cent.
Chief administrative officer Lisa de Soto led the finance committee discussions this Tuesday (Nov. 27), noting that all service and program delivery changes proposed in the 2019 budget for council’s consideration are from its strategic priorities.
“We do not have to complete all these priorities in year one,” de Soto said. “That is something that as we go through the budget deliberations I would like you to think about – is there a priority in your mind more important than another?”
The proposed changes in the 2019 budget include the adoption of an organic recycling program, development of a downtown enhancement plan, an economic development strategy and moving forward with the work started at the wildlife coexistence roundtable with the province.
General manager of municipal infrastructure Michael Fark pointed out the Town of Canmore has engaged in several major capital and operating changes in the last decade, all of which affect the budget.
That includes Elevation Place, artsPlace, a new gymnastics gym at the Rec Centre, the Legacy Trail, beyond curbside recycling, the Roundhouse, steep creek mitigation after the 2013 flood, and transit, to name just a few.
“Ultimately at the end of the day, council is going to make the difficult decision,” Fark said, with respect to what could be cut from the budget over the next two years. “There are no easy things left and the reality is we cannot do it all.”
Each per cent municipal property tax increase represents $230,000 in revenue for the Town of Canmore. Municipal taxes are proposed in the budget just under $25 million and represents almost half the total funds needed for the $53.3 million operating budget.
Operating budget pressures for 2019 include a 2.8 per cent increase in taxes relative to the status quo in human resources – cost of living, performance pay and other adjustments. New resources for the municipality represents a 3.5 per cent increase to taxes, and the debt servicing payments for the loan to renovate the Canmore Rec Centre is 1.9 per cent.
Council directed administration to reduce the municipal property tax requisition for 2019 by two per cent by using Fortis franchise fees. In 2016, council voted to increase both ATCO and Fortis franchise fees, which make up part of ratepayers bills each month.
While ATCO fees go into general operating reserve, Fortis fees have funded the capital reserve. Each fee generates revenues of around $1 million annually.
“It is council’s discretion as to how franchise fees get allocated,” she said.
Mayor John Borrowman put forward the motion for the finance committee to direct administration to make the change.
“Trying to find other opportunities to reduce (property taxes) is a challenge that administration has already spent time on, but I am interested in trying to reduce the overall budget costs and the tax impact,” Borrowman said. “(I would like to) consider directing more Fortis fees into the operating budget and reducing the capital budget.”
Coun. Joanna McCallum, however, proposed a 5.6 per cent tax increase instead for consideration, saying she had concerns about removing significant capital budget funding by reallocating the franchise fees.
