Coun. Andy McGrogan and Mayor Linnsie Clark, pictured during a September council meeting, both voted Monday against passing the next two-year budget, but for different reasons. Regardless, the budget was still passed by a 6-3 vote.--NEWS FILE PHOTO
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City council passed the coming two-year budget Monday night with a 5.6 per cent tax increase attached, and two high-profile items still to be decided in the new year.
But that was without the support of Couns. Andy McGrogan and Shila Sharps, who made a last-minute call for more cost cutting to bring the increase down to about 4 per cent, while Mayor Linnsie Clark voted no after she felt her questions on staffing were not fully answered.
Six other council members said the increase, which would add about $140 to residential tax bills next year, is needed to stabilize the city’s financial outlook and bridge the gap from falling revenue.
Coun. Alison Van Dyke said she supported maintaining a city infrastructure renewal program and service levels until they are studied for efficiencies by 2026, when $2 million is promised.
“Much like the residents, the city is facing similar inflationary cost pressures after taking zero per cent tax increases (in 2020 and 2021) … a slow and steady process would be less shocking.
“Everyone is facing an affordability crisis – I’m a taxpayer, too – but I don’t see a sustainable way forward for the city without approving the budget.”
McGrogan called on staff to suspend the budget process and find another $1.6 million in operational savings next year to reduce the tax increase to 3.9 per cent.
He felt that finding an additional 1 to 2 per cent in savings across the city organization was a reasonable level that wouldn’t cause major disruptions or closures.
“There’s no Hatter sitting at the table in the morning saying it’s great that we’re getting a 5.6 per cent tax increase instead of 3.9 per cent,” McGrogan told reporters. “Let’s keep (service levels) where they’re at, but do we need that extra bit?”
The overall budget requires $946.2 million in tax revenue, about $5 million more than 2024, paired with $16 million in investment income and $14 million in reserve cash, and $13 million in dividends from the utility interests.
The Municipal Consent and Access fee will provide $6.2 million, slightly more 2024, though individual utility bills will see a reduction. An additional $1.7 million in fees and licensing revenue is forecast.
Sharps said the city is using reserve cash to fund some one-time operational costs and capital additions.
“There’s no facilities for the future, pools or rec centres (in the budget),” she told council. “Why wouldn’t we (use reserves) to lower the tax rate?”
Administrators told council during meetings this fall that maintaining cash reserves will be crucial in the mid term to offset much lower energy profits and meet capital needs in a low-growth environment.
The city will continue to use direct withdrawals of reserve funds to balance the budget ($11.1 million in 2025 and $5.1 million in 2026) before eliminating the gap in 2028, two years later than promised last year.
Coun. Ramona Robins said her vote in favour was to create stability for future councils. Coun. Cassi Hider said the city needs to continue offering services for the community, but in an emotional plea said economic growth is badly needed.
Couns. Robert Dumanowski and Darren Hirsch said the economic conditions are troubling, and the budget provides some stability.
Mayor Linnsie Clark did not speak about financial implications of the budget, but said administration had done a poor job responding to her concerns about staffing changes and additions this past year.
“I feel like I’ve asked the questions early and often,” she said. “I don’t know how I can support it.”
The new budget proposes three fewer positions overall, compared to 2024, once some positions are eliminated or repurposed to account for new ones.
A proposed $250,000 grant for HALO air rescue society will be evaluated after an overarching policy on grant requests is developed, and the largest capital project – a new composting facility – could be approved after a regional strategy is explored.
Neither would affect tax rates however, which could rise by an average of $140 next year on a residential property, and a similar amount in 2026.
The city’s capital plan would see about $90 million spent in each of the next two years on maintenance, replacements and upgrades of roads, sewers and other infrastructure. Projects worth about $30 million, not including the food waste facility, would be added, including that twinning of a key central waterline at a $6.5-million cost.
