Town sets guideline for operating expenses

The Town of Black Diamond is preparing for an increase in its operating costs next year. Black Diamond council approved administration’s request to set operational spending guidelines no higher than 2.15 per cent over 2018 to help the Town’s departments set their 2019 budgets. Council approved a maximum one per cent increase in its operating budget for this year, which it set at $3,266,775 last spring. “The last few years we kept everything very close to one per cent,” chief administrative officer Sharlene Brown told council. “For our operational reserves at this point in time, we’re not at a place where we can continue at a zero or one per cent increase due to inflation and utilities and services going up.” Administration researched the projected cost of living increase for 2019, said Brown, and determined it to be between 1.2 and 3.1 per cent. Information was taken from the Workers’ Compensation Board, Cost of Living Allowance for 2019, 2018 Consumer Price Index and Inflation Rates for Alberta and Stats Canada consumer price index that was done in August, she said. The Town recently received its preliminary equalized assessment, revealing the total value of all residential and commercial properties in the community based on the market assessment. All property totals $379,334,791 in value, representing a $16,675,569 increase over last year’s property values, Brown said. “The assessment has gone up just a little bit, which is great,” Brown said. Mayor Ruth Goodwin, who was among those on council to approve the 2.15 per cent increase guideline, said there’s nothing in the Town’s operating environment that’s decreasing. “Costs continue to rise that we have no control over,” she said. “In order to hold the line effectively and to ensure safe and effective service for each and every aspect of the departments of our town we have to come close to meeting the Cost of Living Allowance.” Setting a benchmark for 2019 at a 2.15 per cent increase for wages and operating costs provides an effective level of service for the Town, Goodwin said. “You’ve got fuel, supplies, maintenance costs, material costs, in some instances significantly, electricity, power,” she said. “We are now having to train our bylaw officers with regards to identifying cannabis impairment. When it comes to wages I do believe that our council has identified many times that our most valuable asset is our staff.” Goodwin said she’s happy with the 2.15 per cent increase. “It’s nice to be able to establish a baseline that we will be able to keep over the next three to four years,” she said.