“This will be the most significant budget in modern times in the province. It will have impacts on every single person … in the province.” – Premier Jim Prentice
It has been abundantly clear for several months now that the Province of Alberta is facing some difficult times that could last for several years until the price of commodities recover. During the leadership campaign, then candidate Prentice pledged to get our finances on track, reduce spending and direct more of our non-renewable resource revenue into the Alberta Heritage Savings Trust Fund.
Shortly after he was elected, the fall in the price of oil dictated that immediate action was required and economic predictions have only worsened since then. It is interesting and a credit to the government that it has been able to react so rapidly to the impending fiscal situation and turn their fiscal projections around to reflect the current climate.
Yet municipalities don’t seem to have heard the message. Our neighbours to the south keep crying for more funds to extend the LRT towards Mill Woods. And even though our provincial politicians have made a token roll-back of their salaries, every municipality that I am aware of continues to grant increases.
Political salaries are however, small potatoes when viewed in the light of a total municipal budget. On the other hand, the addition of 28 new positions in the St. Albert 2015 budget has to be of major concern in view of the current economic climate. This is quite frankly a phenomenal increase especially when private companies are dealing with massive layoffs. How can such an increase, which I understand is the largest increase in civic staff in years, be justified?
The total tax and utility burden has to be a concern to St. Albert ratepayers. To quote Mayor Nolan Crouse: “This year’s budget will involve a projected residential tax increase of 3.3 per cent, which is slightly higher than we have seen over the past few years, but which is still among the lowest in the capital region.” Slightly higher, yes – the highest in the past five years. But how about the increase in utility rates, which according to the same source is projected to increase by $24.69 per month? That represents a 25-per-cent increase in my utility bill over last year.
It is clear from the city managers introduction that the 2015 budget was prepared before the economic collapse of the Alberta economy became so obvious and so critical, with phrases like ‘significant increase’ and ‘growing demands’ noted throughout the budget document. One phrase however jumps out and that is ‘to ensure the most current economic climate . . . are applied.’ Recognizing that the budget was prepared in October but not passed by council until December, I question whether the budget adopted reflects the ‘current economic climate.’
The mill rate will not be adopted likely until April, so there is still the opportunity for council to reflect on the budget in light of the ‘current economic climate,’ and make adjustments to the budget and the tax increase.
Failing that, they also have the authority to direct administration to put a hold on some of the ‘business cases’ that are specifically designed to address ‘significant increases’ and ‘growing demand’ until these increases and demands are apparent. Let’s see if our municipal government can turn on a dime like the province has. This budget will have a significant impact on every ratepayer in St. Albert.
Ken Allred is a former St. Albert alderman and MLA
