Council approves 2022 budget

For the past two years, property tax rate increases have been frozen at zero per cent.

But during the budget presentations back in November, Barta emphasized that it is important that property tax rates keep up with the rate of inflation or it else could put financial pressure on the city’s expenses in the long run.

City wages will also rise by 2 per cent under the new budget, following two years of wage freezes.

Last year the city had a budget gap of $22.6 million. Council learned that the city was able to solve 14.8 million of the budget gap through workforce reduction, divisional realignment, facility closures, and transit on demand.

A report requested by Coun. Shila Sharps showed the city saw a reduction of 52 positions last year. The workforce reduction, according to the city will provide $4 million in cost reduction savings each year going forward.

The city also benefited from higher-than-expected revenues from the city’s electric division.

City council also approved a number of amendments to the budget including a $250,000 city centre development plan. That was passed at their Dec. 6 meeting. Council also approved the reopening of the Crestwood and Moose Recreation centres. A total of $900,000 will be spent from the city’s operating reserves to operate the facilities for one more year and $1.2 million will be spent from the city’s capital reserves to fund the new ice slab for The Moose Recreation Centre.

Funding has also been allocated for a new chief of staff position, and public relations position at city hall. Mayor Linnsie Clark said the $250,000 expenditure is necessary in order for the city to build critical lobbying infrastructure. Clark argued that the city has been lagging behind in that area for some time, in comparison to other municipalities.

“We don’t currently have a lobbying infrastructure for getting our voice heard at the provincial and federal level. This is unacceptable at this point and time given the competition for example for grant money, getting awareness for housing issues, mental health issues, substance use issues on the radar of the respective governments,” she said.

The budget amendment passed 8-1.

Prior to the vote, long-time councillor Coun. Robert Dumanowski expressed his support for the initiative, stating there have been gaps over the years when it comes to reaching out to other levels of government.

“I can share an example, where we were looking to put berms in place, and staff was trying to get additional grants to pay for the berms that we were doing, and I’m not saying this to put myself on a pedestal but I had to. I got frustrated. I asked staff’s permission to start calling ministers to start calling politicians,”

“It is very different than what staff has to do, and they do it well, and I have heard the evidence that they do it well but it wasn’t necessarily driving those results. So once we started those conversations and got them there, I’m just saying we got money and it was a different kind of a dialogue,” he said.

But not everyone was on board. Councillor Darren Hirsch was the lone vote against the addition.

“The reality is, is that we do have a new council, there is brand new individuals that sit around the horseshoe here. But we have had lobbying in the past, it actually fell by the wayside, and I don’t know why,” he said.

The addition of the four amendments now pushes the budget gap from $7.3 million to $9 million.

In a statement, the city said they will continue to research and analyze innovative efficiency initiatives for 2022 which will reduce the gap and funding from the operating reserve.

by Tiffany Goodwein

Council approves 2022 budget

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