Council approves 2023 interim operating budget

By Rob Vogt – Local Press Writer
Claresholm town council has approved the Town of Claresholm’s 2023 interim operating budget with no increase in property taxes for municipal purposes and a 1.5 percent increase for increased police funding required by the provincial government.
At its Nov. 28 meeting, council reviewed the interim budget after a report from administration.
Abe Tinney, the town’s chief administrative officer, explained the interim budget allows the town to operate in the new year until the final operating budget is approved, usually some time in April.
He noted there will be some changes until final approval in April.
For instance, the requisitions for education tax and home for the aged are not yet known.
However, in the interim budget, a 1.5 percent over tax increase is projected in order to pay the additional $56,000 in policing costs levied on the town by the provincial government.
The interim budget states council has been able to hold this tax rate increase to nil for municipal purposes in the interim budget through increasing investment income; as a result of increasing interest rates; and increased franchise fee income due to inflation; as well as by making numerous cuts throughout the budget. In many instances inflationary increases the town is experiencing, especially in areas such as energy utilities and fuel, are largely offset by cuts within those departments.
Highlights
These are a few of the significant variances in the 2023 interim budget from the 2022 budget.
Revenue
• The investment income budget nearly doubled, with a $59,000 increase, due to rising interest rates.
• Franchise fee income increased $30,000 based on estimates provided by Fortis and ATCO.
• Arena rentals increased for an anticipated contract with Western Provinces Hockey Academy Limited, along with other minor increases anticipated in rentals.
• Grant revenue is reduced, primarily in economic development, because current approved grants are ending. The town has applied for additional grants, but they are not yet approved, so the budget is built on the assumption the new grants will not be received.
Expenditures
• Police funding charged by the provincial government is increasing again.
• There is a decreased tax forgiveness “expenditure” as a non-residential tax agreement winds down, related to development in town.
• Significant increase in employee benefits costs.
• Significant inflationary increases in energy utilities and fuel costs, as well as other inflationary pressures throughout, including professional fees, such as for the assessor, auditor, information technology support, and so on; insurance; materials and chemicals; and more.
• Significant reduction in economic development spending to coincide with the decreased grant funding that has been budgeted, plus some additional cuts to keep the tax rate increase to a minimum.
• Budgeted decrease to community grants, in operational funding, to community groups that run, for the most part, town-owned facilities. These include the library; golf course; Claresholm Animal Rescue Society animal shelter; community hall; transportation society; and child care society.
• Reduction in professional development/training budget, reducing or postponing training where possible.
• Reduction in advertising and communications budget.
• Reduction in parks materials budget, primarily achieved by planned reduction in service level, eliminating town supplied doggy poop bags.
Tinney stressed the town has enough such bags in stock through 2023.
Coun. Kieth Carlson noted a lot of work was done on the budget.
“You can see what’s being cut and cut and cut to the point it’s affecting our community services groups,” he said.
Carlson noted there are still unknowns that will affect the budget, such as upcoming union negotiations with staff, and the instability of the provincial government.
He said he hated to see more cuts, and the town is at the point it has to be concerned about the revenue side of the budget.
That means, he continued, diversifying the tax base so the financial burden is not downloaded on the same ratepayers.
He wanted a commitment with council to pursue development to broaden that tax base.
“I’d like to thank administration for the work they have done,” Carlson said.
However, he added he could foresee that 1.5 percent increase turning into more through no fault of administration who he stressed are doing their best.
When the vote came to approve the 2023 interim operating budget, all of council voted in favour except Couns. Carlson and Brad Schlossberger who were opposed, and Mayor Chelsae Petrovic who was absent.