Morinville residents will spend about $57 more in municipal taxes next year – a third of which will help cover the cost of running the town's upcoming recreation centre.
Town council passed third reading of its 2015 budget at a special meeting Monday night.
Council held the special overtime session on the budget after its last regular meeting (Dec. 9) ran well past midnight.
"This has been the weirdest budget process we've ever had," said Mayor Lisa Holmes after the passage of the budget. The upcoming organizational review should produce an "amazing" process for next year, she promised.
Council made numerous cuts and additions to the budget in order to bring it from a roughly $1.3 million operating deficit to a roughly $1 million one.
Whereas the previous budget would have left the town $47,926 in the hole even if it drained all its operational reserves, the approved one leaves the town with about $371,245 in its reserves due to a smaller-than-expected deficit from 2014 and a net $256,960 reduction in spending.
The average homeowner can expect to pay about $57 more in municipal taxes next year compared to this one, said Andy Isbister, the town's financial services director (about $1,965 total).
Add in the projected hikes to the school and seniors levies, and most residents can expect to pay about $2,727 in taxes next year, or about $76 more than in 2014, Isbister said.
Tax hike for arena
Council decided on a three per cent tax hike overall, or one point more than had been proposed at first reading.
Holmes added the extra point in order to create a reserve fund for the new arena/rec centre's operating costs.
"We're excited about this rec-centre project, but we know it's going to have costs," she said.
Residents say they want more than just a curling and hockey rink in it, and that will mean higher operating costs, she continued.
"We don't want the people of Morinville to be hit with a five-per-cent tax increase in a couple of years to cover the operating cost of this facility."
A one-per-cent hike will add about $18 to the average tax bill and create a reserve of $78,000, Holmes said. This will be a one-time increase that won't be repeated in future budgets.
Council supported Holmes's move 6-1. Coun. Barry Turner was opposed, saying that it was premature, as they didn't know what residents wanted in the rec centre yet.
Other changes
Council made several tweaks to the budget at second reading back on Dec. 9.
Coun. Brennan Fitzgerald added $2,000 to the budget to fund a youth council. Originally supposed to be established this year, councillors were irked to learn that it had instead been spent on support for the Ignite Youth Action Conference in October.
Coun. Stephen Dafoe added $25,000 to implement recommendations from the organizational review report (due this January), but asked administration to get the cash by trimming other areas by that same amount.
Coun. Nicole Boutestein cut funds for the French Heritage Event and Family Dances in half, saving $11,000.
In response to a request from Coun. Rob Ladouceur, staffers came back with some $95,700 in additional cuts that could be made to the budget, all of which were approved Monday.
This included an $18,000 cut to the financial service's office supply budget (which was essentially the town's entire office supply budget, Isbister explained) and a $17,500 reduction in expenses for the Tour de l'Alberta (the town was negotiating a new deal with the Edmonton Bicycle & Touring Club that should get it more money).
Ladouceur opposed a $6,800 cut to the financial services department, about half of which dealt with professional development.
"Unfortunately, Mr. Isbister can't work till he's 100 years old and we do have to look at succession planning," he said.
Ladouceur also opposed a $3,000 cut to planning and development's ad budget.
But the rest of council approved these cuts, noting that Isbister and planning and development director Greg Hofmann said they could live with them.
On the capital side, council approved $150,000 in repairs to the Ray McDonald arena to keep it operational for the rest of the winter. This move allows the town to save $28,000 in operational costs on weekly inspections of the arena, as the repair's warrantee covers those inspections.
Coun. Gordon Putnam convinced council to cut a $98,000 equipment storage shed from the budget.
Public works director Claude Valcourt noted that this project had been deferred from last year's budget and that his crews had to cover expensive gear with tarps because they didn't have it.
"It was approved for a reason. I would suggest that reason still exists."
Council approved the cut 5-2, with Ladouceur and Fitzgerald opposed.
Council will set the town's mill rate next spring.
