St. Albert taxpayers appear poised for a near three per cent increase (2.89 per cent for homeowners and 3.07 per cent for businesses) to municipal taxes, after city council on Monday closed the door on additional changes to budget 2010. The civic spending increase is actually slightly higher than when the budget process started two months ago, a situation that needs to change before tax notices are mailed out in the spring.
For households and businesses that have seen their earnings and savings suffer during the economic downturn, the budget as a whole can be viewed with mixed emotions. Services will remain unchanged, yet more than 40 hours of deliberations and 60-odd resolutions failed to generate tax relief as spending decreases were eaten up by new initiatives. Meanwhile, the city is on pace for a $407,000 surplus for 2009.
A last-minute effort by Coun. Roger Lemieux to have city administration draft a list of recommended cuts to lower the tax increase by another 0.75 percentage points was, unfortunately, rejected by the majority in a 5-2 vote. Only Coun. Gareth Jones voted with Lemieux for real fiscal restraint.
Residents can only wonder whether further cuts were possible, or in fact reasonable. The majority appeared satisfied with any tax increase below three per cent, which was council’s original budget direction to administration. Coun. Lorie Garritty insisted council “own the budget” and not return it to administration, which he reminded held up its end of the bargain by drafting a sub-three per cent budget. Mayor Nolan Crouse, who was onside with a similar motion last year, this time agreed with Garritty, pointing out if there were more items to cut he would have already done so. Coun. James Burrows felt the budget keeps St. Albert moving forward and preserves the quality of life that residents come to expect.
None of those points are of comfort to taxpayers who already pay the highest municipal taxes of any major city in the province. While it’s true administration followed through on its budget direction, Lemieux correctly pointed out there’s much more in the $132-million operating budget that council did not review. Council mainly vets new budget requests, which for the operating budget amounted to less than $250,000, leaving the majority of last year’s base budget largely intact. Administration is in the best situation to determine if a program or initiative — which could have been approved one, two or even 10 years ago — still delivers value to taxpayers.
It’s disappointing council closed its annual budget process with the inference that quality of life and true fiscal restraint are mutually exclusive. No member of the public has asked for draconian cuts that would lead to crumbling roads, snow-covered streets, litter-strewn parks or criminals running amok in the streets. As Lemieux reminded his peers, the economy is still gripped in a downturn with no end in sight; the city needs to display the same spending restraint that’s an everyday reality for households and the private sector.
Council still has a chance to soften the blow by putting this year’s anticipated $400,000 surplus toward tax relief. The final numbers won’t be complete until the new year, but it’s still more than enough time to make budget changes before tax notices are mailed out in May. Council should, as in past years, resist any temptation to sock away that money into a reserve or new initiative. St. Albert taxpayers own that surplus and that’s exactly where it should go.
