St. Albertans may see some relief on their utility bills after council voted to redistribute part of a projected $10.8-million surplus for 2024.
Chairing the special meeting of council because Mayor Cathy Heron called in remotely, Coun. Sheena Hughes said the surplus, $2 million higher than projected in the Q3 summary delivered three months ago, was the largest she had seen since her first election win in 2013.
City CAO Bill Fletcher gave the same rationale for St. Albert's very in-the-black position this time around: strong construction and permit performance and higher-than-expected investment returns, along with savings on in-house and contract staffing due to longstanding vacancies.
Staff reported policy dictates the surplus should have been split between the stabilization reserve ($6.5 million) and the capital and land and facilities reserves (a split of the remaining $4.3 million).
But Coun. Shelley Biermanski suggested an alternate plan, and councillors Wes Brodhead and Mike Killick joined Hughes to vote it through.
That plan allocates $1 million to the water reserve; $1.85 million each to the capital reserve and the lands and facilities reserve; and $6.1 million to the stabilization reserve.
Heron disagreed with the change, arguing tax dollars should be used to invest in the public good and utility dollars should stay on the utility side, which is commodity-based.
"Utilities should be cost recovery," she said. "It’s a commodity people purchase for their daily lives. There is a usage link to your utility bill. Taking a million out of a couple of reserves to lower the rate by, what, a couple of cents? I don’t know, because I don’t have a backgrounder. But this amount could fund the design of the next pool project we need."
Hughes and Biermanski pointed out council just weeks ago voted to increase the franchise fee charged on utility bills by 25 per cent in order to mitigate the tax increase.
"It’s something we can tell residents that we did something with this surplus that is more than usual," Hughes said. "Significance is in the eye of the beholder. If it’s a few bucks a month, it’s $40 a year and it all adds up."
"People are struggling right now," Biermanski added. "Every bit helps immensely at this time."
How did we get here?
City of St. Albert revenue for the year is $218.4 million, $6.3 million more than expected. Expenses were $207.5 million, $4.5 million below budget.
On the utility side of the budget, revenue was $50.4 million, $464,000 below budget, but expenses came in under budget by even more: $35.9 million, $1.4 million lower than planned for.
“The city continues to maintain a strong financial position while maintaining high levels of service to residents and advancing strategic priorities as identified in council’s strategic plan,” Fletcher said.
