Financial indicators compiled by Alberta Municipal Affairs are being interpreted by city administration as a sign that St. Albert is operating in a “lean and efficient” manner but two city councillors took exception to that view.
On Monday night, council’s standing committee on finance was discussing the 2012 financial indicator graphs compiled by Municipal Affairs. The graphs compare indicators like equalized tax rates, debt service as a percentage of debt limit, major revenue sources and more.
St. Albert was assigned to a comparator group that included Red Deer, Lethbridge, Medicine Hat, Grande Prairie, Airdrie, Spruce Grove, Leduc, Okotoks, Fort Saskatchewan, Cochrane and Camrose. Years covered for the majority of the graphs are 2007 to 2012.
The graphs, which will be made available to the public, show St. Albert above the median range in terms of equalized tax rates. They also show that the city’s revenue from property taxes make up 45 per cent of the total municipal revenue versus a group median of 34 per cent and looked at the city’s expenses per capita, which were $2,301 – $163 lower than the group median.
The conclusions drawn by staff in the report were that the indicators show the city’s in good financial shape and the expense results could be considered to give evidence of a “lean and efficient organization.”
This interpretation didn’t sit well with Coun. Cam MacKay.
“I’m not comfortable lending my name to something that says St. Albert is operating in a lean and mean fashion,” he said.
Coun. Sheena Hughes echoed that sentiment.
Coun. Cathy Heron said she likes to see that the city’s expenses are in line with the comparator municipalities. She made the motion that the indicators be received as information and administration be directed to release the results to residents.
“We do do this annually and we have to remember that these are the provincial Municipal Affairs numbers. But they do have to be taken with a grain of salt,” she said, though noted she finds them useful.
Heron suggested in future council might have to be open to a discussion about getting revenue from sources other than property taxes, like levies or franchise fees.
Mayor Nolan Crouse was concerned with the grants per capita number, saying based on the range indicated in the graphs there might be more money available.
Heron’s motion to receive the financial indicator graphs as information and release them publicly was passed by a vote of 5-2, with Hughes and MacKay voting against the motion.
