Budget 2009
Published January 9, 2009
Stock markets and oil prices have been in free fall since September resulting in a global recession. Compared to the past few years, 2009 will not be great economically and Strathcona County's budget for the coming year reflects that reality. While the budget is the result of an entire year of work, events of the past few months have had a greater impact. The original proposed municipal tax increase was an unrealistic 8.89%. By chopping projects, we reduced this to an increase of 7.37%. My personal shopping list was pared to two minor items, both of which are designed to produce net savings. We have cut vacant positions within administration hoping that we can manage with fewer staff.
It is difficult to prepare a realistic budget in these tough times. Fuel costs are a huge item and forecasting these has been nearly impossible. Who would have thought that the retail price of gasoline would drop by 50% in a few months. A one cent change in fuel prices has a budget impact of over $30,000. Is it realistic or prudent to assume this reduction is permanent and stable? In other areas, falling prices have worked to our disadvantage. The falling stock market has impaired our investment revenues just as it has for those of you living on pensions and RSP income. Most of the planned upgrader projects have been cancelled or postponed. While this should not affect current tax revenues, there is a ripple effect upon business and commerce who retrench in anticipation of declining markets.
On the expense side, Strathcona is faced with ever increasing demands for services and programmes. 1.3% of the budget increase is for service enhancements demanded by Strathcona residents, more frequent snow removal and an expanded transit service are two additional financial burdens supported through your taxes. Recreation is another large expense. Last year Recreation, Parks and Culture accounted for over 20% of tax revenue. This year, over half of the capital budget is earmarked for recreational facilities and still the clamour continues for more hockey rinks, more football fields and baseball diamonds. As much as everyone wishes to support programmes for youth and others, these are very costly facilities, both to build and to operate.
There is good news, however. Since the 2009 Budget was approved, re-estimates of industrial tax revenue together with lower forecast costs in some areas may result in a lower tax increase in the order of 6%, an average dollar increase of less than $100 per year. Also, the 2009 budget calls for no increase in tax supported debt. The budget remains a living document until May, at which time the mill rate is set for the year. Until then, we shall continue to adjust and revise, always with the goal of providing the best services at the lowest cost.
Alan Dunn
Councillor, Ward 6
780-464-8206
dunn@strathcona.ab.ca
Last updated: Wednesday, March 10, 2010
Page ID: 2056