St. Albert city council formally approved next year's municipal budget on Tuesday which comes with a 5.5 per cent property tax increase and an 8.5 per cent increase to utility bills.
The 8.5 per cent monthly utility bill increase represents a further increase than the 7.2 per cent increase that was initially proposed, despite council not approving any budget amendments last month that had any impact on the utility rate.
In an email, city spokesperon Kathy deJong explained that the discrepancy is a result of ARROW Utilities, formerly called the Alberta Capital Region Wastewater Commission, “increasing its rates more than anticipated.”
“The final result is the typical household in St. Albert will be paying about $12.30 more per month in utility costs in 2024 than they did in 2023,” deJong said, adding that the average monthly utility bill for St. Albertans will be about $156.54 per month.
Council heard on Tuesday that ARROW Utilities finalized their wastewater rates on Nov. 24.
The property tax increase means homeowners with a house worth an average of $500,000 can expect to pay an additional $226 in taxes next year.
Overall, St. Albert's municipal budget next year includes an operating budget of about $203.5 million; a utility operating budget of $50.75 million; 20 municipal and utility growth capital projects totalling $10.65 million; and 38 municipal and utility repair, maintain, replace (RMR) projects at a cost of about $53.5 million.
New additions to the city's operating budget next year are 10 full-time staff positions, including two new fleet maintenance workers for transit and public works vehicles; a development officer; a building compliance officer; four human resources and I.T. positions; and two engineering positions.
The budget also involves the city hiring two new full-time utility workers: an operator for the new garbage truck council gave the go-ahead to buy, and a new utility locator technician.
Among the municipal capital projects approved for next year is the development of a mobility choices strategy, continued development of trails in St. Albert's Oakmont neighbourhood, the creation of an affordable housing fund, and numerous planning or design projects.
The mobility choices strategy, with a budget of $1 million, will replace the city's existing Transportation Master Plan and include a new long-term plan for St. Albert Transit, as well a transportation plan for the land the city acquired at the end of 2022 as part of an annexation with Sturgeon County.
The creation of an affordable housing fund will allow the city to be in a better position to apply for grant funding from higher levels of government, and allow the city to be a more substantial partner for agency-led affordable housing projects, the city's planning and development director Adryan Slaght said last month.
When it comes to the city's RMR budget next year, which council approved back in June, some of the projects the city will undertake include $5.3 million for continued maintenance of the city's stormwater outfalls along the Sturgeon River, $4.9 million in repairs to the Oakmont water reservoir and pumpstation, and about $2.1 million for some underground water line maintenance downtown, in Braeside, and in Akinsdale.
The 2024 RMR budget also includes $7.2 million for various road maintenance projects, $490,000 for traffic signal maintenance, and $750,000 for city-owned parking lot maintenance.
The budget was approved with Coun. Shelley Biermanski and Coun. Sheena Hughes opposed.
“We just have to realize a 5.5 per cent tax increase cannot be a standard moving forward,” Hughes said. “This council and future councils have to do better; residents cannot afford to have their taxes go up by almost $1,000 in one term, and $220 in one year.”
“I can't be supporting something when I know that this tax rate could be lower.”
Biermanski added that she couldn't support the budget as a result of the more-than-expected utility fee increase.
“It was a tight budget year, and it was one that I think council probably struggled with a little bit,” Coun. Wes Brodhead said prior to voting.
Next year's tax rate could still change despite the budget receiving formal approval on Tuesday, as the city won't finalize the tax rate until May, and when the time comes administration can bring forward last minute budget amendments.
When council approved the city's 2023 budget last December, the property tax increase was slated to be 4.6 per cent, however, after the first quarter of the year administration realized their revenue forecasts were too conservative, and an adjustment was made which then lowered the required tax revenue.
