City facing post-pandemic budget pressures
By Lethbridge Herald on October 19, 2022.
Herald photo by Al Beeber
City manager Lloyd Brierley listens as treasurer Darrell Mathews speaks to city council acting in its role as Economic Standing Policy committee Tuesday morning. Mathews gave the SPC a rundown on the proposed 2023-26 budget and financial pressures impacting the City.Al Beeber – LETHBRIDGE HERALD – abeeber@lethbridgeherald.com
Councillor John Middleton-Hope doesn’t expect the 2023-26 budget to be a cheap one.
“If you want the level of services that we have currently, and if you want to enhance some of those services to deal with some of very challenging problems of a mid-sized city that has big city issues to deal with, then it’s going to cost money,” the councillor said Tuesday as city council, acting in its role as the Economic Standing Policy committee, took a short break from hearing departmental budget presentations.
“I don’t like it, I know nobody on council likes it,” the councillor said.
“From a council perspective, we need to ensure that we are getting good value for the money we are being asked for.
“This is not a spend council. This is a council that is asking for efficiencies, that is asking for justification for increases in areas of the budget. But when you have a budget that has not increased for the last three years, and you want to even sustain the level of services that we have, it’s going to cost money. That’s the long and short of it,” Middleton-Hope said.
Treasurer Darrell Mathews told council during his Budget 101 presentations that the proposed base city budget for the next four-year cycle would see residents paying 3.77 per cent more each year. However, if all requested budget initiatives are approved by city council in November, that figure could rise to six per cent annually.
Mathews gave the SPC a rundown on the budget process and pressures facing the City. Residents have seen a zero increase on the municipal portion of their property tax bill for the past three years after a 1.82 per cent increase in 2019.
Based on homes with an average market value of $285,500, the 3.77 per cent increase would amount to just over $94 a year for each year of that cycle.
This would amount to a total of $376 a year increase by the end of the budget cycle, Mathews confirmed in response to a question from councillor Ryan Parker.
The City’s annual operating budget for 2022 is $433 million; by 2026 that is expected to be about $460 million, Mathews said.
The operating budget covers costs for services including police, fire, transit, parks, electric, streets, snow removal and others.
Mathews told media he expects the public will have mixed feelings about a budget increase.
Mathews said other Alberta communities are in the same stage as the City on developing budgets and staff have heard they are facing similar pressures.
While budgets haven’t been finalized, Mathews is aware that some communities could be looking at property tax increases ranging from two to 8.5 per cent for 2023.
Property taxes here are $177 below the average of $3,738 when compared to 21 other communities, Mathews said. Lethbridge offers more services and a higher level of service than other communities, the SPC was told.
Historic inflation levels, community growth, asset management and external pressures are all having a financial impact, the SPC heard.
Middleton-Hope said with big-ticket items such as police and Fire/EMS funding facing council, the base budget increase will likely be higher than that 3.77 per cent figure.
“What most people are hearing today, and what we’ve been listening to over the course of several months is that there are significant pressures on the City to continue to provide the level of service that we are currently providing, let alone building capacity organizationally toward where we know we want to be,” said Middleton-Hope.
“So there’s some significant challenges for the city; we’re hearing that from all areas of the corporation as well as the boards, commissions and committees. And we are left with the responsibility of making decisions about where do we allocate funds, to whom do we allocate funds, do we need more people, do we need more equipment, do we need more services just to continue to provide the level that we are currently at?
“What I’m hearing is some really, really in-depth examination by areas of the corporation,” councillor said.
“The 3.77 per cent is not what we’re going to be going back to the public with in the future. It’s going to be more than that. People need to understand that the reality is that the cost for services has gone up exponentially – everything from fuel costs to employee costs. Most of our unions in the city have been without a collective agreement for two and sometimes three years. Their costs of living, as people living in the city, has also gone up. So yes, it has an impact on the average taxpaying citizen,” said Middleton-Hope.
“Our employees also deserve to get a decent wage and in order to try and attract and retain these people, we have to be competitive. And we’ve got certain sectors of employment where we can’t find people,” he added.
The zero per cent tax increases for the last three years is having a substantial impact on the ability of the city to continue providing services, he said.
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26-25
Well let’s put it this way. This is the same old standard song and dance that we have heard from council over the last 30 years. What services do you want cut. It is unsurprising Johnny wants more as he is the former police chief. Next up is the devaluation in the real estate market, some areas have had over a 50% reduction in the price point for sale of their properties. What happens to current assessments in Lethridge. Are we exempt from devaluation of real estate values. If so, we are untouched by inflation and all contracts should be kept a zero. Everyone you know should contact an agent and see how much the sale prices are off in Lethbridge compared to a year or two ago. And the squeeze is on and the usual babble of what services do you want cut!!!! Next there will be major press and back patting as the City embarks on another “low cost subsidized” seniors housing ladened with solar panels. Yea. Check out the parking lot down on Coulee Creek Road, look for clunkers.