ATHABASCA – Athabasca County’s 2022 budget will see a three per cent cost-of-living increase for employees and some extra attention for fire and emergency and enforcement services, snow removal and energy efficiency initiatives but the adoption of a minimum tax on all parcels of land had some unable to raise their hands in support.
Council passed the municipality’s 2022-2024 Operating Budget and 2022-2026 Capital Budget in one motion at the March 31 regular meeting, which showed a combined $29,900,676 in operating and capital expenses, with $22,720,047 in revenues coming in from taxes.
Coun. Natasha Kapitaniuk, who chaired the budget and finance committee, which has been meeting since December to work on and finalize this council’s first budget as a group, said it was certainly a learning experience for everyone around the table and was confident that taking those budget meetings behind closed doors was ultimately the right decision.
“Because of that choice we were able to learn a lot. We had a new director of finance join our team here at the county and there were a lot of good learning lessons and financial lessons that came from that, so I think going forward we're going to be very ready, and we'll probably get it out a lot quicker. I want to say everyone did a great job with all the time they put into it and I'm happy that this is a great step forward for this county,” Kapitaniuk said, adding council has agreed to hold its budget deliberations in open meetings in the coming years.
During the six minutes of conversation regarding the 106-page budget document, Coun. Joe Gerlach and Coun. Tracy Holland expressed the reasons they would be voting against the budget. In the end, they were joined by Coun. Gary Cromwell in the vote, who wasn’t vocal about his reasons for voting against, but the motion passed by a 6-3 margin.
For Gerlach it was the minimum tax, which will see every property in the county assessed a minimum $250 tax to start.
“I cannot support the budget … this minimum tax thing just upsets me to no end,” said Gerlach prior to the vote.
“The difficult decision to implement a minimum tax on all parcels takes effect with the 2022 tax year,” said reeve Brian Hall in an April 1 media release following the adoption of the budget. “This means that all properties, regardless of the property type or size, will pay a minimum of $250. Council and administration noted considerable inequity across properties of similar values across the municipality; this change is a step towards equity in taxation. Council believes it is reasonable that all parcels contribute a reasonable amount to the sustainability of the county.”
The release goes on to say there are 180 municipalities that have used Section 357 of the Municipal Government Act to implement a minimum tax on all pieces of property within their jurisdictions. The average minimum tax among them ranges from $445 to as high as $1,375, it went on to note.
Interim CAO Dawn Phillips clarified April 4 that the proposed minimum tax would only apply to properties that owe less than $250 in municipal tax. Properties owing more than that will not be affected. The tax bylaw will be brought forward to the April 12 meeting for further discussion on how to apply the tax levy.
Holland noted during the meeting she had concerns with several pieces of the document, saying, “I think there's some confusion, especially when it comes to portions of this budget and understanding exactly how they are going to impact our ratepayers. So, I also struggle with that.”
The capital budget specifically, will see $7,921,918 in expenditures.
Bridge work will see $3.39 million of that, while $2.27 million will go towards road construction projects, a number the county has projected it will spend every year through 2025. A $4-million waste management project carried over from 2021 will also be funded through a draw on reserves.
In addition, the county plans to spend $1.77 million for three graders; a zero-turn lawnmower; a tandem axle trailer; and a 15-foot mower, all of which will replace aging equipment; along with a used loader. Three light truck replacements and a new truck for enforcement services are also budgeted for, along with an RTV, for $305,000 in all.
There is also $155,000 budgeted for budgeting software, a phone system and server upgrades. It will also contribute $85,000 in capital funding to the Athabasca Regional Multiplex Society.
The county also expects to bring in $533,000 from the sale of older vehicles and equipment, namely three light trucks, three graders, two Kubota RTVs, a telehandler and a tandem axle trailer. This will help create reserves for snow clearing and energy efficiency programs, along with a dedicated reserve meant specifically for future fire and emergency services spending, in an effort to proactively budget every year for equipment renewal and replacement.
A further $35,000 has been allocated for communications equipment upgrades across the county’s seven fire departments.
“We value our volunteers, and this reserve demonstrates a commitment to ensuring they have the equipment necessary,” said Hall in the media release, which also highlighted a 30 per cent increase in fuel costs and a three per cent cost-of-living adjustment, which employees have foregone in the last several years.
Total capital grants for common services; roads, bridges and streets; and deferred MSI spending add up to $2,136,871, while other capital funding for roads, bridges and streets sits at $2,745,428. That brings the total to be funded by municipal taxes to $2,506,619.
Of particular note, along with that new truck for the community peace officer in the capital budget, councillors also approved funding for a second CPO position to enforce county bylaws and provincial traffic matters.
Included as well is $681,647 in salaries, per diems, benefits, and other expenses for the nine councillors to conduct county business this year.
“This budget and our multi-year plan to replace equipment will ensure that the county continues to provide a high level of service citizens have come to expect and deserve,” said Hall in the media release.
“This budget is based on thorough discussions about priorities in the region. We are proceeding with important capital projects and enhancing operations that matter to residents, such as road maintenance and emergency services. While undoubtedly many decisions were difficult, council believes the budget approved today takes a long-term view for the financial health of the county and improves the equity of taxes paid across properties.”
