With operating costs continuing to rise, the Town of Black Diamond is preparing to spend more money next year.
In a split vote at its Oct. 21 meeting, Black Diamond town council approved administration’s recommendation to set the 2021 operational spending guidelines at a three per cent increase over last year for operating expenses and one per cent for wages until next year’s budget is approved.
The Town’s budget policy requires council to establish spending guidelines for the following year’s operating budgets to provide guidance to departments and committees of council as they prepare their budgets for the following year.
Chief administrative officer Sharlene Brown told council that the Town’s operating expenses are expected to increase more than $230,000 over this year's $3,265,306 operating budget.
Administration’s recommended one per cent wage increase was based on the average cost of living data administration had collected from various sources including the Worker’s Compensation Board, 2020 Consumer Price Index and Inflation Rates for Alberta and Stats Canada Consumer Price Index for August, Brown said.
“We did some wage comparisons throughout the region and province to see where we sit,” she said. “Most of our departments like the arena, public works and protective services are pretty much on target – even planning is pretty close. There is a significant amount in the administrative world that would need to be updated.”
Deputy Mayor Daryl Lalonde, who didn’t support the motion, said he would like to see a higher wage increase for staff than one per cent.
“It’s a small price to pay to recognize what administration has done,” he said.
Coun. Ted Bain said administration and council need to determine ways to reduce costs to prevent a municipal property tax increase in 2021. Bain also didn’t support the approved operational spending guideline increases.
“I have concerns about any increase,” he said. “We are, I believe, in a very difficult situation and we are going to have to reduce some of our spending. We are going to have to reduce the level of service in some cases.”
Coun. Brian Marconi agreed, telling council that the status quo is no longer sustainable.
“We have to look at doing things differently and open our minds whether it’s zero based budgeting or whatever,” he said. “People have lost their jobs because of COVID. My expenses are going up, but my income is not, and every year it gets worse and worse but I have to live within my means and think outside the box.”
Marconi said the Town can explore ways to cut costs such as making businesses responsible for maintaining boulevards, similar to residents, and mowing low traffic green spaces less frequently. He also suggested increasing fines and instilling more enforcement when bylaws aren’t adhered to.
“Those are the kinds of things we need to start looking at doing differently,” he said.
Mayor Ruth Goodwin, who supported the increase, said it’s important that the Town meet the expectations of the community and provide services to the level they’re accustomed to.
“Outside of our municipal world, costs continue to rise,” she said. “If we continue to decrease our expectations on administration to work with the limited income we generate from our tax base, we’re going to be eating into our reserves.
“If we don’t start to save for our reserves we are potentially, in the future, putting this community in a very precarious situation. We continue to use our reserves and this is not fiscal management at the level I would like to see it at.”
With Black Diamond eligible for $278,399 through the provincial and federal governments’ Municipal Operating Support Transfer (MOST) program, Coun. Jackie Stickel asked Brown what administration’s plans are for that money.
The MOST program is part of the Canada-Alberta Safe Restart Agreement to support municipalities that are experiencing significant operating costs due to the COVID-19 pandemic from April 1, 2020 to March 31, 2021.
Brown replied that the biggest impact the pandemic has had on the Town is lost revenue. She estimates about $50,000 will be lost through protective services this year due to the inability for a new bylaw officer to receive adequate training after educational facilities shut down and another $50,000 through the Oilfields Regional Arena, which is losing rentable ice time due to requirements to clean and sanitize between user groups.
Coun. Veronica Kloiber asked if administration has calculated how much money the Town has saved due to the pandemic.
Brown replied that the Town experienced savings in economic development programs and special events that didn’t run due to Alberta Health Services restrictions in light of the pandemic, and that some projects weren’t completed through public works. She said the number has not yet been tallied.
“There is a little bit of savings there that we will see,” she said. “That’s why I’m only asking for a three per cent increase. We will transfer those savings into those departments for 2021.”
In fall 2019, council authorized a 1.75 per cent increase in wages and 1.5 per cent increase in operational spending for the 2020 operational spending guidelines. The budget was decreased by 0.08 per cent from 2019.
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