Sturgeon County residents face a 2.65 per cent property tax increase under a proposed budget headed for council next week.
Councillors will finalize the proposed budget on Dec. 8, but as of Tuesday had shown initial support for a 2.65 per cent spending increase. That's up slightly from administration's first draft, which pegged the tax increase at 2.6 per cent.
On a $400,000 home the 2.65 per cent increase represents about $2.34 a month.
Councillors debated the budget over several days last week adding several new expenses from the draft. They also approved a handful of new positions, money for new equipment and dollars for several outside agencies, such as the Morinville Fire Department and the Redwater physician recruitment committee.
While most councillors were onside with current spending plans, Coun. Don McGeachy said he still believes the county is spending too much.
"Any increase is no good. Everybody else is freezing increases, freezing travels and training and we have all of those things," he said. "To me that is incompatible with today's market."
McGeachy indicated he'll likely vote against the budget, arguing an increase during a financial downturn doesn't make sense.
"It is irresponsible and reckless to assume the worst of this financial downturn is over."
Sturgeon Mayor Don Rigney said he favours using the county's reserves to lower this year's increase.
"We are not sure if we have seen the end of this recession," he said. "If this isn't a rainy day I don't know what is."
Coun. Tom Flynn, participating in his first budget since winning a spring byelection, said he believes the increase is fair and reasonable and isn't looking to make any big changes before it passes next week.
"Over the last week I have talked to probably a hundred different people to get their reactions and without exception they found it reasonable."
Water fees will go up from between $2.40 and $3.45 per month, depending on which water line serves residents, and wastewater fees will increase $2.55 per month for all customers.
McGeachy said overall this year's budget was well done, but he believes there are still areas to cut back.
"The reality is there may have been places we could have trimmed and we didn't have that discussion."
Capital dollars
Councillors will hold more meetings to discuss the nearly $18.5 million in borrowing for major capital projects proposed next year.
Rigney said he is worried about the long-term impact that much borrowing would have on county finances.
The borrowing would pay for an upgrade to 195th Avenue running from Highway 28 to 66th Street, improve fire protection to the Sturgeon Valley and pave Sunnyside Road from Highway 37 to the Sturgeon River.
Flynn said council definitely has more work to do on the borrowing piece.
"That is the sober second thought that we need to have."
He said the fire protection program would only go ahead if it has the support of Sturgeon Valley residents.
"That is something that we have to go to the people on and see if they buy in."
