Interim budget adopted with proposed 2.25 percent tax increase

By Rob Vogt
Claresholm town council has approved the Town of Claresholm’s 2024 interim operating budget with a projected 2.25-percent increase in taxes.
At its Dec. 11 meeting, council reviewed the interim budget, after a report from administration.
Part of that report states council has kept tax rate increases below inflation for a number of years, especially in the last two, mindful of the inflationary and economic pressures and struggles already facing the residents and businesses of Claresholm.
In 2023 this included not only keeping the tax increase to residents to about one per cent while inflation was in excess of six per cent council also eliminated the planned inflationary fee increases in the water and sewer utility fees.
However, the town is not immune to inflation, and therefore cannot maintain this lack of increases long term.
As a result, the 2024 interim budget includes council’s decisions in late 2023 to reinstate inflationary increases for water and sewer utility services, along with the fee restructuring and planned annual inflationary increases to the garbage service fees.
Council also decided in late 2023 to increase the franchise fee rates for ATCO, the town’s natural gas distributor, from 10 per cent to 12 per cent and for Fortis, the town’s electricity distributor, from five per cent to six per cent.
The 2024 interim budget also includes an increase in municipal property tax revenue. Council anticipates a significant portion of this increase will be from growth/new development, this increasing the tax base, but also anticipates a tax increase for residents and businesses greater than last year, though still very conservative.
The interim budget contains an overall 4.5 percent increase in net property tax revenue, or an increase of approximately $167,000.
If the increased tax revenue from new development brings in half of this, it would result in an estimated 2.25 percent property tax increase for the individual resident or business, which is still well below current inflation.
The budget also includes a number of new initiatives such as a new automated garbage program; restructuring of the community development department, bringing economic development and development/ planning into the same department; utilizing technology including meeting/agenda software, request management software, Microsoft 365, and cemetery management software; increased funding for training and development; and increased funding for museum personnel.
An interim budget allow the town to continue to operate into the new year as administration cannot operate without an approved budget according to the Municipal Government Act.
2024 budget discussions will continue into the new year as the town receives additional information from the province and other organizations on revenues granted and expenditures invoiced or funding requested.
It is anticipated the 2024 final budget will be passed in April 2024.