Turner Valley town council has taken its first glance at next year’s budget and will be looking to taxpayers to determine where to make cuts.
Administration presented council with a detailed documentation of the Town’s projected expenses of $5,867,097 and revenues of $5,548,607 at its Sept. 21 meeting, revealing a $318,490 difference. Because the Municipal Government Act prohibits municipalities from budgeting for a deficit, decisions will be made in the coming weeks as to what services to keep and what to downside or eliminate.
While administration anticipates paying less in areas like training, supplies, debt payments, contract services, equipment maintenance and fuel in 2021, among its highest projected cost increases are $76,333 in wages and benefits and $192,378 in transfer payments made to outside operations like the Sheep River Regional Utility Corporation, which supplies Turner Valley with its water.
Turner Valley Mayor Barry Crane said council will work in the coming weeks to bring the $318,490 difference down.
“We will look at service levels," he said. "That’s what the public participation piece will be about – asking residents what they feel is working, what they feel is not, what they can live with and what they can live without.”
A public participation plan will come to council for approval at its Oct. 5 meeting.
Administration’s presentation to council on Monday outlined the 2021 and 2022 operating budgets, as well as the 2021-2026 capital budget, in accordance with the Financial Operating and Capital Assumptions and Guidelines approved by council in the summer.
Among new expenses in the operating budget is the municipal police requisition municipalities have been mandated to pay, estimated at $54,632 in 2021 and $82,006 in 2022 for Turner Valley, and costs associated with bylaw enforcement e-ticketing, said Corinne Middleton, manager of finance and corporate services.
“In August, the Province announced that all enforcement agencies must migrate to an electronic ticketing platform by fall 2021 as the court house will no longer accept paper ticketing,” she said, adding that software and/or hardware must be purchased and licensed. “There is an initial setup fee of $15,000 (for two vehicles).”
Middleton said administration expects to pay $4,000 in 2021 for the initial software setup and $2,000 in 2022 for software maintenance.
While presenting the preliminary budget to council on Monday, Middleton said the $318,490 difference comes from a $151,533 drop in revenue and $166,957 increase in expenses in 2021 compared to 2020.
The difference, if left as is, would equate to a 5.6 per cent increase in municipal taxes - a number that Deputy Mayor Lana Hamilton finds very concerning.
“The 5.6 per cent we’re missing is scary to me,” said told council. “We’re going to need to get creative here. This economy is tight. People are struggling.”
Hamilton said council and administration succeeded in holding the line for three years, but a 5.6 per cent increase “is not something that the community is going to have an appetite for.”
Coun. Garry Raab agreed.
“A deficit of $318,000 is quite scary,” he said. “We need to do some serious work coming up.”
Coun. Jamie Wilkie said the $318,490 would equate to an increase of about $290 per household, based on 1,100 residences in Turner Valley.
Middleton also provided details on Turner Valley’s capital projects slated for the coming years, which she said will total just over $4 million in 2021.
Next year’s most costly project will be conducting an engineering study for sanitary and storm water on Sunset Blvd., estimated to cost $3.4 million, she said.
Other proposed projects include an Okalta Road turnaround, paving the town office parking lot, a diesel exhaust capture system for fire services, e-ticketing software for municipal enforcement, a sewer and storm infiltration investigation and water line pressure testing.
Administration also allocated $100,000 for pathways, parks and recreation projects - a priority set by council during last year’s budget discussions - which could be used for pathway connections and the development of Arrowhead Park off of Decalta Road.
Most or all capital projects are often covered by grant money, debentures and reserve funds.
Council will begin working through the budget at its Oct. 5 meeting, and continue throughout the fall months.
Details about the proposed budget are available at https://turnervalley.ca/
