A city councillor wants to do more to rein in municipal spending by capping property tax increases at 1.5 per cent in 2011 and 2012.
Coun. Len Bracko surprised many of his fellow council members on Monday when he gave notice that he intends to bring forward a motion to cap taxes.
"We are still in a recession and I think the economy looks like it's stagnant for the next couple of years," said Bracko, who wants to make sure yearly tax increases go towards paying down infrastructure debt.
Getting realistic
"I think it's important we send a message to ourselves and council, there is only so much we can afford. We need to look at this realistically and make some tough decisions."
Earlier this week, council raised municipal property taxes by 2.89 per cent for homeowners and 3.19 per cent for businesses — slightly higher than the original draft proposed by city administration.
Bracko said the 1.5 per cent is a realistic starting point to build a sustainable municipality. He arrived at the figure after reviewing the municipal price index — a measure of cost increases for goods routinely purchased by the city.
Bracko said council has to start looking at meeting the costs of the future by creating more reserve funds to cover repairs and maintenance to new and existing facilities.
This is necessary, he said, so city residents and the aging population won't be stuck with a huge tax increase when these facilities need repairs.
So far the city only has maintenance programs for just three of its more than 60 buildings.
During an open house in October, members of the public told council St. Albert is becoming too expensive. It's an issue that will need more attention in the future, Bracko says, but council needs to start planning now.
"We need to put our house in order for the next 25 years. And, in the past, we've built an unsustainable municipality," said Bracko. "It's preparing and building for the future, and also building an economy with a bit more industry and commerce in St. Albert to help assist the residential load."
After more than 40 hours of deliberating the budget during the past few weeks, Bracko's motion came completely out of the blue for Coun. James Burrows.
Burrows said he is not against the idea of lower tax increases, but said council would have to be strategic about it because the motion would affect future councils.
"To put this motion forward, it really inhibits the council for the next year as to having them adhere to it," said Burrows, who feels optimistic about the economy. "I think we are slowly pulling out of the worst of it and things can change."
Since the bulk of the operating budget is dedicated towards salaries, Burrows said he wouldn't mind re-examining staff salaries. He pointed out the provincial government has already committed to a salary freeze rather than laying off more employees.
"For staff to get a pay raise year after year, that's the first thing we should be looking at," he said.
Lynda Flannery, president of the St. Albert Taxpayers Association, has been present throughout most of this year's budget proceedings and called Bracko's motion "bold and courageous."
The association continues to be concerned with spending at the municipal level, especially when it comes to "nice-to-have" capital spending, such as the $14-million proposed for all five stages of a heritage-themed park or $6 million to celebrate St. Albert's 150th birthday.
The city is forecasting a $400,000 year-end surplus, and Flannery has urged council to use the funds to lower the tax increase even further.
"As taxpayers, we remind council of the many in this community who are struggling with fixed pensions, layoffs and reduced income," she said. "It's the elite who benefit from these expenditures, not the ordinary taxpayer family."
Council won't debate Bracko's motion until the new year.
St. Albert's overall property tax rate won't be set until the spring, after the provincial government sets the education tax levy.
