WESTLOCK - Westlock County’s draft 2020 operating budget, which was unveiled to the public last week, contains a 4.94 per cent tax increase.
Council held an open house in council chambers Nov. 25 to present the 2020 draft operating budget to the four people present, a version which has not been amended, or discussed by council previous to the meeting.
Council will wrap budget deliberations Dec. 4 and 5 with further meetings, both of which are open to the public.
The projected operating expenses for 2020 amount to $21,032,435, a $566,555 increase from 2019. As for revenues, excluding municipal taxes, there is an increase of $131,017 from last year, bringing the 2020 figure to $9,363,445.
To balance the two and maintain service levels, the county would need to bring in $12,032,435 in municipal taxes, a 4.94 per cent increase from 2019, which accounts for 56 per cent of the 2020 revenue. Keep in mind the figures provided by administration, maintain the same level of service standards and delivery and moving forward council will make decisions regarding potential changes.
“The county is extremely taxed already. Our reserves, even though we don’t have a long-term capital asset management plan, are probably way below what they should be. I can only say that in comparison to other counties like Barrhead, Thorhild and others,” commented county resident David Woynorowski, who wanted to know what about this budget takes the county out of a bad financial situation.
“I see nothing in here that charts a path forward, that would give me reason to be optimistic that we can dig ourselves out of the hole … and I know it’s not all your fault, you’ve inherited a mess. But we are two or three budgets into it so I think it’s a fair question,” he added.
At the first open house regarding the 2020 budget held this summer, the choice between a tax increase, or a service level cut was put to residents. This was reiterated by Coun. Jared Stitsen in response to Woynorowski, since there are few options available for funding.
“In the end, the reality is we’re short on income,” said Stitsen.
Administration clarified that the increase in revenues comes from a 3.5 per cent increase to penalties on unpaid property taxes, which balances with a two per cent decrease for other revenues. Most of the penalties are accumulated by linear properties in the oil and gas industry. The 2019 year-to-date balance of taxes owed in that sector is $1,748,200 (of a total $2,681,100 owed in property taxes). In penalties, the 2019 budget reflects a figure of $184,500, while for 2020, that number is projected at $507,500.
Linear assessments (which are provincially done), and the oil and gas sector in particular, were identified as a major issue for the 2020 budget. The increase in penalties does not necessarily reflect money in county coffers, since those companies have not paid property taxes and the penalties accumulated are not likely to be paid either.
“How do you stabilize a plan when (linear assessment) is continuing to decline?” asked deputy reeve Brian Coleman.
In short, residents were certain that choices will have to be made about expenses, taking into account ratepayer priorities. Agricultural services, for example, has been a program of contention and its necessity questioned.
“Since we’re already so heavily taxed, I’m leaning heavily towards (cutting back) on non-priority items and if you have to adjust service levels, just do it and tell us,” said Woynorowski.
Also called into question were expenses like $40,000 for office renovation, or the beaver control program, which helps private property owners get rid of beavers for a flat fee — pest control is budgeted at $75,965.
At the start of the meeting, Woynorowski clarified that there is some inconsistency between the county’s road grading policy and the actual service. He contrasted the county’s policy for grading roads with the money being spent on it and insisted residents don’t know what they’re paying for.
Stitsen responded that moving forward, council is looking to clarify its policies regarding grading roads based on cost per service, and what the county can afford, which Woynorowski called a “huge step forward.”
Council is also working on a five-year strategic plan, which was brought up at the open house as another way to lay the foundation for better communication from council.
The plan, however, does not address economic development, or ways of attracting funds into the county. Stitsen listed some of the things that have been discussed in council, like a business development officer, but said that option is costly, while others don’t guarantee movement into Westlock’s boundaries.
“There’s benefits to the county … but how do we get them to come here? It takes money to make money,” he said.
Reeve Lou Hall added that business tends to accumulate in the Town of Westlock, and the county doesn’t see the benefits.
The numbers
By account type, $5,486,349 is intended for salaries and wages.
The county added two new positions, one full time in corporate services, and another full time equivalent (50 per cent communications and 50 per cent recreation), contributing to an overall increase of $224,593, in addition to other increases in salaries and benefits.
The draft also provides numbers by department.
Transportation expenses are projected at $7,802,508, up $182,502 from last year. Of the $7 million, $6,387,351 is intended for gravel road maintenance. Of significance is the gravel program, projected at $3,209,443 and $2,146,588 for grading.
Council expenses, including salaries, add up to $504,927, and administration will cost the county $1,838,949.
Planning and development is $511,069, while fire services is $558,249, and enforcement is $186,536
On recreation, with no change to service levels, the county would be spending $1,121,355. This includes the Tawatinaw Valley Ski Hill ($478,908), Long Island Lake campground ($157,495), and other recreational facilities.
Water services are projected to cost $665,815, and solid waste management is $774,035 and agricultural services amounts to $774,329.
The expense numbers provided in the draft budget don’t reflect any changes to service levels since council has not made any decisions.
