Athabasca town councillors didn’t see eye to eye when it came to approving its capital and operating budgets for 2012.
Following an amendment, town council unanimously passed a $7.24 million balanced operating budget which forecasts an increase in taxation revenue of 3.5 per cent.
A separate motion of council will approve any actual property tax rate increase once assessment levels are determined.
But it was the town’s 2012 capital budget, valued at more than $5.73 million, that divided council, as it passed by a slim 4-3 margin.
Mayor Roger Morrill and councillors Lionel Cherniwchan and Paula Evans all voted against the presented capital budget, primarily because of $2.8 million allotted to paving the old Colinton highway to Hees Estates.
The project will be funded through a $2 million grant and took a $800,000 town debenture.
Morrill said he believes the money could be put to better use.
“Buses travel on mud to get to (Landing Trail Intermediate School), and the sport of pothole dodging for motorist and cyclist within the Town of Athabasca is on the rise,” he said. “Rather than spending and borrowing a large sum of money on this one road, I would prefer to take a broad-based regard to the overall community priorities with road maintenance and development.
“Upgrading and paving of the Colinton Highway could cost more than $3 million,” Morrill added. “Although this would be nice, I can only consider supporting the initial street component without sidewalk for an estimated cost of under $800,000 and (only if) that it would be done as (a) local improvement.”
Evans said she doesn’t approve of the town debenture, and also questioned the effectiveness of paving when water from a spring flows under the road.
She also noted paving the old Colinton Highway is not reflected in the town’s strategic plan.
“I could speak for a long time about why I believe this cost is not suitable at the present time, but perhaps the clearest indication is that this project is reckless of strategic priority by this council,” Evans said.
“Approving this budget limits our ability to respond to the other strategic priorities.”
Evans went so far as to suggest town residents oppose the town debenture.
"If the citizens agree with this stance, they can make it known when the borrowing bill is brought forward and 10 per cent of the citizens can respond to that," she said.
Cherniwchan proposed an amendment to only pave the Colinton Highway as far as Pioneer Place, but it was defeated 4-3.
Another point of contention among council was sewer main upgrades worth more than $1 million, funded by a $535,000 grant and a $500,000 debenture.
The sewer main upgrade will take place on the old Athabasca Arena property, across from Edwin Parr Composite School.
Morrill said he didn't see the need to take out a debenture to perform an upgrade they may never need.
“As far as the sewer upgrade at an estimated cost of more than $1 million, which we are told will have to be done before the development of the old arena (property),” Morrill stated, “my thoughts are that we do this when and if we develop this area, and in conjunction with that development.
“If a private developer were to take on this arena project, they might pay for this upgrade requirement, or possible joint venture of the town and developer funding it when or if that time arises.”
Councillor Tim Verhaeghe countered, “My concern is if the developer, (if we) have them pay part of the cost, the developer doesn’t pay that cost. Eventually when someone buys that home, that cost is passed on to the homeowner.
“We're talking about a hypothetical situation, and I do not wish to get into a war of words over a hypothetical situation at this time.”
Cherniwchan argued that it wasn't a hypothetical situation.
The operating budget forecasts total revenues of $7.24 million, down from $7.43 million in the 2011 budget. Taxation revenue is projected at $3.08 million, up from $3.03 million last year.
Morrill noted that the revenue total includes the education component, which the town does not see. It was increased by 10.8 per cent.
Council costs come to a a total of $132,950, which includes mayor fees, councillor fees, mileage and conference costs.
Administration salaries come to a total of $578,000, whereas in 2011 administration salaries were budgeted for only $506,225. The town went $55,000 over budget on administration salaries in 2011.
Council allotted $50,000 to economic development in 2011, and came in over budget by almost $4,000.
In the 2012 budget, council cut that budget to $30,000.
Regional tourism was budgeted $34,000 in 2011, but came in over budget by $53,000. For the 2012 budget, council increased that amount to $97,000.
The operating budget was approved following a $75,000 amendment to write off money owed by the Athabasca FLIPS Gymnastics Club.
