Cold Lake, AB – Cold Lake City Council passed its 2024 Capital and Operating Budgets, holding the line on municipal services while working to finish important capital projects, despite a significant increase in costs.
“We all know that things we rely on have become more expensive, and while it’s true for every household and business, it is also true for municipalities,” Mayor Craig Copeland said. “In this budget we’ve kept our services stable and, where possible, have positioned increases on utilities and user fees rather than the general tax burden for the community.”
The budgets were passed with a total of just under $70.2 million in expenditures. The 2024 Operating Budget was passed at just over $58 million, inclusive of a transfer to the 2024 Capital Budget of $6.7 million. The 2024 Capital Budget includes over $12.1 million in funding, ensuring the continuation of the Lakeshore Drive Improvements, the new Waste Water Treatment Plant, and the Public Works Operations Centre.
A forecasted average approximately 4.98 per cent increase in property taxes is expected to balance the budget. Property taxes are levied proportionate to the assessment of property in the community. Property taxes for a specific property may increase or decrease at a different rate, depending on the property’s assessment increase or decrease relative to other properties. This is an estimate, as final taxes are not established until May.
Inflation of costs seen in goods and services, along with increasing costs associated with the carbon tax, have all impacted the City of Cold Lake’s budget significantly. Vandalism and vagrancy have also posed a public safety threat that has had an effect on budgets as well.
Property taxes from residential and commercial properties, along with user fees, are the primary revenue sources for the City of Cold Lake’s operating budget. The level of provincial and federal funding that supports communities continues to decline and is shrouded with uncertainty. The City only receives approximately $1.2 million in operating funding from other levels of government. This is only approximately $53 per capita in operating assistance from the Government of Alberta and only $20 per capita in federal funding assistance for specific programs and services. In comparison, the residents and businesses of Cold Lake contribute approximately $835 per capital ($1,361 per capita inclusive of commercial property taxes).
To achieve a balanced budget, moderate reductions were made to the budgets of items such as snow removal, sidewalk replacement, and dust control.
“We strongly considered all of the services we provide to residents, and considered where reductions could be made,” Copeland said. “Ultimately, we felt that the City’s services are important to the community and we sought to maintain the programs and services that City provides, not cut them. No one wants to see taxes increase, especially when the economy seems uneasy. But we do need to recognize that things have gotten more expensive and that will be reflected in the cost of services.”
The budget also reflects previously approved increases to the electrical and gas franchise fees. The City will also be increasing the cost of providing paper utility bills to $2.50 from $1.00, adjusting its penalties for arrears and non-sufficient funds transactions to be in-line with other communities and financial institutions, and raising recreational fees roughly five per cent, including fees charged at the Energy Centre, the Cold Lake Marina, and the Cold Lake Golf and Winter Club.
Wastewater, curbside organics collection, waste removal, and pet licensing will also see moderate fee increases to keep pace with the cost of delivering the services.
“Fees that the City charges need to keep pace with the cost of delivering the service or we will fall behand as a community,” Copeland said. “Inflation has set off a domino effect that reaches all aspects of our lives and municipal services are no exception. Our hope is that economic activity picks up and inflation is controlled so that we can make some headway in terms of affordability. This trend is not isolated to Cold Lake.”
While some services have been reduced to curb costs, a few new programs and services have been also added for 2024. These include an Economic Development Advisor to facilitate the influx of business investment and to work with local businesses to administer the heavily accessed and highly supported Rural Renewal Stream of the Alberta Advantage Immigration Program. Council also bolstered its Council Goodwill and the Community Recreation, Arts, Culture, and Heritage Grant Program from $20,000 to $100,000 and from $80,000 to $250,000, respectively. These programs have been very successful in attracting significant events to Cold Lake, promoting the community, contributing positively to the local economy, and enhancing the quality of life for the residents of the City.
In an effort to further spur development in the community, the City of Cold Lake will be moving forward the marketing various municipally owned properties to stimulate further commercial development in the coming years.
The Capital Budget will see three multi-year capital projects continue to be supported with an additional $2.5 million to the Lakeshore Drive Improvements, $3 million for Phase 1 of the Public Works Operations Centre, with the Waste Water Treatment Plant being supported in conjunction with the Cold Lake Regional Services Utility Commission.
The budget has also funded an additional expansion of kayak storage at the marina, siding replacement for the newly-renovated North Arena, and maintains the Annual Capital Street Improvement Program at $2 million.
The 2024 Capital Budget includes spending across a variety of initiatives, equipment replacement programs and departments. A breakdown of the spending is as follows:
Fleet and Equipment Infrastructure: $1,510,000
Environmental and Utility Infrastructure: $1,240,000
Roadway Infrastructure Improvements: $4,500,000
Facilities Infrastructure: $4,252,000
IST Infrastructure: $115,000
Recreation Infrastructure: $533,000
A full breakdown of projects in the 2024 Capital Budget can be found on the City’s website at www.coldlake.com/budgets. Further details about major capital projects and their progress can be found at www.coldalke.com/projects.
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