Potential tax hike looms as budget goes to vote
Jessica Lee
Cochrane town council is expected to vote on the proposed 2022-24 draft budget next week and depending on where the vote lands, it may create a $25.55 per month tax increase for the average household in 2022, including expected adjustments to utility fees.
During a committee of the whole meeting Dec. 6, administration presented council with a further review of a front-loaded 10 per cent tax increase option in 2022, an amount which would be expected to decrease to about seven per cent in the following year.
The budget under review totals $60.4 million with $29.2 million from the tax levy and requisitions, accounting for a 13 per cent total increase from 2021. Growth in the town's property assessment will offset the amount by $3.6 million.
The proposed budget also includes $2 million to hire additional town organizational staff in 2022.
Coun. Patrick Wilson said he is in favour of increasing taxes but by a lower margin of six per cent in 2022 and three percent in the following two years.
He also worries that many of the additional staff positions he is opposed to are being front loaded for hire in 2022, including an equity and inclusion officer.
"I think the near-term organizational vision is too heavy with middle management positions and needs more focus on operational assets," he said, adding that he would not be voting in favour of the budget as it stands in council's next regular meeting Dec. 13.
Coun. Susan Flowers expressed her support for the creation of the position of an equity and inclusion officer in an earlier budget meeting, expressing she did not want Cochrane to fall behind on some of the funding and movement they expect to see in that area based on recent conversations with Alberta's Minister of Indigenous Affairs.
Administration is committing to report quarterly on the progress made to implement the organizational vision and planned positions would be reported to council before hiring as they are determined, said corporate services executive director Katherine Van Keimpema
Also, during the Dec. 6 meeting, manager of financial services Tanya Galon provided town council with a report of the town's third-quarter findings.
Most divisions' net costs were lower in the areas of office of the CAO, corporate services, development and community services and town partners, which include the Cochrane Public Library and Spray Lake Sawmills Family Sports Centre.
Galon pointed out that external factors in 2021 played into this, including departments beginning to return to pre-pandemic service levels, inflation, supply change issues, labour shortages, manufacturing delays, which were felt across all North America, and the B.C. floods cutting off supply chains for a time.
"These unprecedented issues make capital completion dates difficult to predict and financial statements difficult to forecast within any degree of accuracy," said Galon.
She also added that the town anticipates a surplus of over $1 million in revenue mainly through constructions projects and town renovations, which could either be due to overall growth or supply shortages.
During the fourth-quarter report in the spring, council will be presented with options as to what to do with any surplus from the year, she said.
"Possibilities are that we would save for the future — put that surplus into reserves, invest in programs and services, fund capital and infrastructure projects, perhaps pay off debt or some combination of these factors."
