This is a second Letter to the Editor that I write as outgoing Mayor with a purpose to share some perspective on the state of financials of the city of St. Albert at 2016 yearend and to provide some linkage of the 2017 priorities to the 2017 approved budget. I do this to assist residents in knowing where the city stands with respect to some measures and what some key priorities are as determined by Council.
First, residents and business owners should know that the city is in a very enviable position financially, by so many measures, when compared to any Alberta city.
Yearend restricted surplus reserves are $129,674,000 at yearend 2016 which may very well be the very best position of any city in Alberta on a per capita basis. These reserves allow for 2017 projects to be paid for in cash with exception of the already approved borrowing for a sanitary sewer line which is under construction.
Additionally, there are no funds approved for future large capital items such as an aquatics expansion, a 6th arena, a gymnastics facility or a soccer facility and these decisions are left for the next city council to address. A borrowing bylaw for $21,900,000 for another library has been approved if needed but no detailed plans are yet in place. The next council will assess next steps.
Yearend 2016 debt is $41,586,000 which is near the lowest debt per capita in Alberta. This amount is the remaining debt on Ray Gibbon Drive plus Servus Place, both of which will be paid off by 2028. The Gazette, several weeks ago, reported the St. Albert debt status, one of the lowest debt per capita cities in Alberta.
The key capital priorities for 2017 are as follows:
$30 million for construction of underground sanitary sewer pipe to provide sewer capacity to assist with growth (borrowing has been approved)
$12 million dollars in road and back alley maintenance and upgrades
$2 million in trail and sidewalk maintenance and upgrades
$30 million Park and Ride near the Anthony Henday and St. Albert Trail
Operationally, the service levels that the residents have come accustomed to are essentially all being maintained in 2017 compared to 2016 except for a few modest changes such as back alley maintenance standards being improved and additional important support for youth and social program provisions being added.
It should be noted that St. Albert continues to be ranked amongst the safest communities in all of Canada, is one of the safest places to drive, has remarkably low crime rates, remains ranked at or near the top as the best city to live in and to raise a family in and in recent years has become ranked as one of the top cities in Canada to invest in.
That said, city council has approved about $700,000 for school area traffic safety and about $200,000 to assist with traffic control optimization on St. Albert Trail. Council has also approved funding for engineering design for the accident-prone and traffic congested intersection at St. Albert Trail/Boudreau/Giroux.
Council approved a budget with a 2 per cent decrease in utilities and 1.5 per cent increase to residential property taxes. City council has no control or input into the school taxes which were on your municipal tax bill; that is a tax that the province requires the city collect and the city, in turn, grants that amount to the province, exactly as the province demands.
Residential tax changes:
2012 2.4%
2013 2.8%
2014 1.0%
2015 2.8%
2016 -0.4%
2017 1.5%
6-year average 1.7% increase
Finally, the measure that indicates the balance between residential and non-residential assessment has been an important analytic being tracked. About 10 years ago that measure was 91 per cent residential and 9 per cent non-residential. Today it is about 86-14, an important measure for the local economy, local jobs and helps ensure that the tax burden is borne less and less by residential owners compared to more being borne by non-residential owners. This is mostly accomplished by adding businesses. This trend and measure is good for everyone.
Your City is in a good place financially and St. Albertans should be pleased and indeed proud of where we stand, outstanding by any measure one chooses to use.
St. Albert is in a good place.
Nolan Crouse, St. Albert
