New blog

It's been a tremendously busy two months since council started reviewing the 2009-11 budget. Hundreds of motions and countless hours of questions and debate went into the final residential tax increase of 4.55 per cent.

Covering the budget is a unique opportunity to learn about the City of St. Albert, how it operates, council's goals and the people behind the scenes. 

This blog has made it possible to take a closer look at all aspects of the budget, from line-by-line cuts or additions, to expanded comments from civic leaders. That kind of flexibility (and freedom of space) just isn't possible with a regular newspaper story.

I enjoyed the experience so much, I'm going to continue blogging about local civic matters. My new blog, Civic Matters, will give readers more insight, background and and chance to ask questions or provide comments about important local issues.

Look for Civic Matters early in the new year.

Until then, thanks for reading. And happy holidays!

- Bryan Alary

Budget highlights

2009 operating budget: $103 million

Spending breakdown:

- General administration, 28%

- Culture, parks, recreation, Family and Community Support Services, 27%

- Fire/EMS, 10%

- Police/bylaw, 9%

- Common and equipment pool, 8%

- Transit, 8%

- Roads, streets, sidewalks, lights, 6%

- Planning, development, land and housing, 2%

- Council and legislative service, 1%

- General revenue, 1%

2009-11 capital budget (municipal)

2009: $87.6 million (includes stage three of Ray Gibbon Drive, at $47 million)

2010: $34.7 million

2011: $26 million

Spending by category

Ray Gibbon Drive, 61%

Growth, 19%

Re-investment, 18%

Community enhancement, 2%

Budget wrap: what council said

Here's a look at how council viewed the 2009 operating and 2009-11 capital budgets. Council approved the budgets late Monday, meaning homeowners will see a 4.55 per cent increase in municipal property taxes next year. Non-residential property owners face a 5.28 per cent increase.

Mayor Nolan Crouse
"Four and a half per cent is OK," he said in an interview. "I call it OK. I do, however feel that because of the [provincial] MSI grant money we're still able to do a lot of good things for the future. Without the MSI money we'd be scrambling for some improvement projects. But with the MSI money it's been a lot easier to show continual improvement for residents."

"Residents are going to see improved services, improved quality of life for a modest tax increase. I still want us to keep the pedal to the metal for Servus Place performance. I still think that's an area of watch for us."

"There's something in it for generally everybody, without it being a 10 per cent tax increase. It's an OK budget."

The mayor isn't about to lose sleep because the budget approval was not unanimous. (Coun. James Burrows voted against). "That's democracy."

Coun. James Burrows
"In all good conscience I will not be supporting this," said Burrows, who was disappointed to see council cut funding for nine new firefighters. The decision means firefighters will have to log more overtime.

"The decision of not hiring these firefighters is a huge, huge mistake. In all good conscience I cannot support the budget because of that decision. I know that if I was a parent [of a child] involved in a car accident and someone was coming off a 14-hour shift who was fatigued, over-worked … that the city council would not be prepared to spend half a million dollars to perhaps save the life of a child is something that just floors me."

Coun. Lorie Garritty
"It's a reasonable tax increase. It's not what some people will be happy with it but I think most people would recognize — particularly if they get into what exactly we're spending the money on, if they take the time to analyze that — I think it's fair. 

"It's a compromise We started out at 8.97. We worked hard to get it down to 4.55, with a lot of hard work and good ideas from a lot of people. Mr. Mayor, I think this is a darned good budget."

Coun. Carol Watamaniuk
"Being the only woman in the group here, we've finally given birth to the 2009 budget. It was a well-planned, well-thought out, well-scrutinized, well-analyzed and well-nurtured offspring that I think we came up with. 

"I applaud the staff and my colleagues on council. I don't think I have ever witnessed, in all my years on council, such an incredibly hard bunch of work that went into a budget. I applaud all of you."

Coun. Len Bracko
"It's one of the toughest budgets I've ever sat through. I sat through some in the early 90s when we were going through some tough times also."

Bracko was pleased with council's decision to add an extra $1 million for road maintenance. 

"It's key that we spend less money now than we do later on in maintaining our road infrastructure."

Coun. Roger Lemieux
"As far as I'm concerned, we took a passionate, intelligent business-like approach [to the budget], especially with the dramatic change in the economy right in the middle of the budget."

Coun. Gareth Jones
Jones made no closing remarks before the final budget vote. However, earlier in the meeting he applauded administration's list of recommendations to cut spending by one percentage point. Jones had indicated he wouldn't support the budget if the tax increase came in above five per cent.

"This is a very positive response to council's request."

Budget curtain call: 4.55% tax hike

The average St. Albert homeowner will see a 4.55 per cent increase to municipal property taxes next year. 

Council wrapped up weeks of debate when it approved the 2009 operating and 2009-11 capital budgets late Monday.

The increase means the owner of a typical $400,000 home will pay $2,442 in property taxes, up $106 from current.

Council approved a 9.5 per cent increase to utility rates. The change represents another $7.06 per month per household.

Commercial, industrial jump 5.28%

Non-residential property owners face an average 5.28 per cent tax increase. 

For the owner of a $900,000 warehouse, that represents a tax bill of $9,887, up $515 from current. The tax bill for a $1.8-million restaurant will come to $19,774, up $1,029 from 2008.

Read more about the tax increase Tuesday morning at www.stalbertgazette.com

4.83% proposal

Council will get a look tonight at administration's recommendations to reduce next year's property tax increase by one percentage point. 

If approved, homeowners would see their taxes increase by 4.83 per cent, down from the current 5.91 per cent hike.

The proposal, which council asked for two weeks ago, includes changes on both the revenue and expense side.

Here are some highlights:

- Lower investment income by $732,000

- Save $540,000 by not hiring nine new firefighters 

- Add $240,000 in overtime costs for fire department

- Add $286,000 in revenue from higher than expected assessment growth

- Save $150,000 by cutting fuel budget  (on top of $375,000 already cut)

- Lower staff benefit budget by $250,000 

- Cut $188,900 in operating costs that can be eliminated because capital spending was not approved.

- Drop insurance premiums by $100,000 (the city would be assuming higher risk)

- Cut $87,400 for RCMP staffing from budget to more closely reflect actual officers on staff.

- Save $66,600 by hiring new staff on May 1, instead of April 1.

There are a few more suggestions to cut spending by a few thousand here and a couple thousand there.

Interestingly, the 1.08 point reduction includes the $540,000 for the new firefighter staff. When I spoke with Mayor Nolan Crouse last week about this list of recommendations, he felt the firefighter business case should be separate.

"My guess is [the $540,000] is outside that one per cent," Crouse said. "And it kind of  better be."

Council meets tonight at 4 p.m.

City hall payday

Mayor Nolan Crouse will receive a 13 per cent pay hike next year, while his six peers on council will get a 24 per cent increase.

The raises, which take effect Jan. 1, were included in the 2009 operating budget. The raises set St. Albert council salaries at the 60th percentile of other mid-sized Alberta cities, as per council's remuneration policy.

Crouse will make $84,742 next year, up from  $74,983. The six part-time councillors will earn $29,560, up from $23,766.

Compare that to salaries in Wood Buffalo ($103,000 for the mayor, $30,450 for councillors), Medicine Hat ($89,600 and $29,800), Lethbridge ($81,504 and $23,542), Grande Prairie ($78,750 and $29,400) and Red Deer ($76,678 and $24,564).

One third of council salaries are tax free, as per the Municipal Government Act.

Staff get 4.5 per cent raises

Council isn't the only group getting a raise on Jan. 1. Non-union staff at city hall will receive a 4.5 per cent pay hike next year. Council approved the raises after a private briefing on Monday evening. 

Read more about council's raises here. Read about staff increases here.

Be fair to business: Lemieux

Coun. Roger Lemieux does not want to see businesses pay more than their "fair share" for the Servus Place tax levy.

Starting in 2009, commercial and business owners will be asked to pay more per $100,000 of assessment than homeowners. The plan, to be phased over three years, would see business owners pay $55 per $100K of assessment by 2011, compared to $29 for homeowners.

The split levy follows the 86-14 "tax burden ratio" city administration uses to calculate the remainder of municipal property taxes. The ratio ensures homeowners contribute 86 per cent of city tax dollars, despite the fact residential property makes up 91 per cent of all assessment. 

Just last week, St. Albert Chamber of Commerce chair Rob LeLacheur called the tax burden ratio a "tax grab," before he urged council to keep the current one-to-one ratio for the Servus Place levy.

Lemieux plans to introduce a motion next week that would accomplish just that. He said a split levy flies in the face of the 2004 plebiscite that authorized Servus Place construction.

"Businesses should pay their fair share, but we shouldn't, in the middle of it all, change the game plan," Lemieux said today. "The game plan is to take away from the residential burden and give it to the business and burden them."

Lemieux, a former business owner himself, believes homeowners will support the idea of sticking up for local businesses, even if it means slightly higher taxes.

If his motion is approved, the residential tax increase would jump to 6.04 per cent, up from 5.91 per cent. 

Business owners would see their tax increase fall to 6.83 per cent from 7.55 per cent.

Council will debate the motion once it's formally moved on Dec. 22.

Dollars and (per)cents

St. Albert's percentage tax increase of 5.91 per cent might be lower than Edmonton's 7.3 per cent, but when looking at actual dollar amounts, taxpayers here stand to pay more. (That's what happens when St. Albert taxes are already the highest in the region).

Here's what St. Albert taxpayers would pay in municipal property taxes, should the 5.91 per cent residential and 7.55 non-residential increases hold up. 

Municipal taxes in St. Albert would be $2,473.84 for a typical $400,000 home in 2009, up $138 from current.

According to the Edmonton Journal story, municipal taxes would be $1,470 a year for a $400,000 home in Edmonton, or an extra $50 compared to 2008. 

Without a tax rate for Strathcona County it's tough to make a similar comparison. The Sherwood Park News story says the "average household" would pay an extra $105 annually in municipal taxes.

St. Albert commercial and industrial

The owner of a commercial or industrial property worth $900,000 would pay $10,395.40 in 2009, up $729.76. For a $1.8-million property that works out to $20,790.79 in taxes next year, up $1,459.

St. Albert council continues budget deliberations on Dec. 22.

Edmonton, Strathcona County at 7.3%; Morinville at 5.5%

Edmonton city council has completed its budget deliberations, with the majority approving a 7.3 per cent tax increase. See story in today's Edmonton Journal.

The Sherwood Park News reports taxes will go up 7.37 per cent next year in Strathcona County. County councilllors cut the hike from an original 9.03 per cent. Read more here.

Want to bet at least one St. Albert councillor will make reference to these figures when budget proceedings wrap up here on Dec. 22? St. Albert's increase is down to 5.91 per cent, by the way.

Meanwhile, just north of St. Albert, Morinville town council has approved a 5.5 per cent tax increase. That represents an extra $129 next year for the typical $300,000 home. (Full details can be found in Wednesday's print edition of the Gazette).

And, Sturgeon County council has cut the tax hike there to 4.28 per cent, down from 7.9 per cent. Budget proceedings are almost complete, with Mayor Don Rigney calling for more cuts. (See Wednesday's Gazette as well).

NABI half-flip

It did not take long for city council to reverse course (half way) on a decision to cut funding for the Northern Alberta Business Incubator (NABI). They agreed to provide a $25,000 operating grant, half the amount originally requested.

It was just last week that council agreed to cut the $50,000 subsidy. Several members objected to the funding in light of NABI officials admitting they do zero fundraising. 

"Every organized non-profit in our community is required to [fundraise]," is how Coun. Carol Watamaniuk put it. "Surely an organization that shows businesses how to run a business can come up with $50,000." 

Mayor Nolan Crouse said council gave enough earlier in the year when it helped finance NABI's new building in Campbell Business Park.

Council flip-flopped on the subsidy Monday, after feeling the pressure from NABI directors. Jeanette Bancarz of ATB Financial threw out several noteable stats to help with the persuasion.

Of the 61 businesses that have graduated from NABI, 39 still operate in St. Albert. Bancarz said that represents more than 200 jobs. Those businesses will pay $88,000 in taxes, while NABI itself will pay close to $50,000.

If council wants to achieve its economic development goals, members should "let NABI do its thing," she said.

The speech convinced several councillors to change their minds (Roger Lemieux, Gareth Jones and Lorie Garritty). Well, they agreed to provide a half the subsidy, at any rate.

Councillors Len Bracko and James Burrows continued their support for NABI. Watamaniuk and Crouse opposed the subsidy. 

Discount transit

Earlier in the budget process, a local resident asked council to cap bus passes at $20 for persons with disabilities.

Council later heard St. Albert Transit does not provide discounts for customers with disabilities. City manager Bill Holtby said there are no direct subsidies for transit, though AISH recipients can choose to pay for transportation needs with money they receive from the province.

In contrast, Strathcona County does provide discounts for persons with disabilities. AISH recipients pay just $20 a month. According to the Sherwood Park News, a county councillor has recently floated the idea of free transit passes for seniors.

http://www.sherwoodparknews.com/ArticleDisplay.aspx?e=1332441

5.87 per cent - UPDATED

Homeowners face a 5.87 per cent increase on their property tax bills next year, after council made several spending cuts and a few additions on Thursday. Commercial and industrial property owners face a 7.51 per cent increase next year.

The residential increase is down three full percentage points from the hike proposed in the original draft 2009 operating and 2009-11 capital budget.  

Next year's operating budget is largely set, save for one request to hire nine new firefighters. Council won't debate that $540,000 expenditure until Dec. 22, when the fire chief is available.

In theory, the tax increase could fall to 5.03 per cent if council turns down the staffing request.  (And boy is that one complicated decision — read more in Saturday's Gazette). If the positions are approved, the increase will remain at 5.87 per cent.

During the same Dec. 22 meeting, council will also decide whether to put the AltaLink power line into the unfunded list in the 2009-11 capital budget. That has no tax implications.

Here are a few highlights from Thursday:

• Add $425,000 in spending over 2009-10 to build washroom facilities in Riel Recreation Park

• Cut $50,000 from the contract and general services budget at Servus Place

• Cut $60,000 for an RCMP internal review

• Cut $50,000 from the Servus Place sponsorship renewal program

• Cut $154,000 from staff training and development (corporate-wide)

• Use grants to pay for $135,000 in environmental master plan initiatives

Several motions were defeated:

• Hold council salaries to 2008 levels

• Cut tax-supported capital funding by $650,000

• Cut $200,000 from the materials budget at Servus Place

• Add $173,000 in revenue at Servus Place

After considerable fussing about wordsmithing, Coun. Gareth Jones withdrew a motion to cut the base budget by 1.5 per cent.

Finish line in sight

Four visits to the mall.

Twelve council meetings.

100 motions.

Zero fist fights.

Equals one civic budget.

Save for a few motions left for Dec. 22, council tonight could pretty much wrap up the 2009 operating and 2009-11 capital budget. 

All but a handful of outstanding motions remain, most of them focused on Servus Credit Union Place. Mayor Nolan Crouse wants to raise revenues and cut spending, removing the "conservatism" he says administration built into the budget.

Crouse also wants to use surplus dollars from 2008 to fund $125,000 of the $150,000 in next year's budget for 150th anniversary celebrations.

There's also a motion about what to do with the AltaLink power line.

Cut capital?
The last motion up for debate should be interesting. The mayor wants to change how capital projects are funded, using as many unallocated grants as possible instead of tax dollars (also called pay-as-you-go).

Crouse said his goal is to lower the property tax increase. The only way he do that is by eliminating the annual infusion of tax dollars that go into the capital fund. That creates problems for the entire 10-year capital plan.

Let me explain. Every year the city transfers about $12 million from operating (taxes) into the capital fund. The city calls this tax infusion the "capital envelope."

Of the $12.6 million in 2009, roughly $3 million will go toward actual capital projects, $4 million into reserves for future projects, while $5 million will pay off debt.

Administration has already advised against cutting the capital envelope for a one-time tax savings. Dean Screpnek, the city's CFO, says such a move would set back the entire 10-year capital plan.

The capital plan, by the way, lists $730 million worth of projects. The city only has $475 million in identified funding.

The mayor will have to make a mighty convincing pitch to convince three other council members to vote his way. Given how Crouse was outvoted recently on the extra $1 million for road maintenance, one might argue he'll be in tough.

The budget meeting starts at 4 p.m. I'll post an updated tax increase as soon as proceedings wrap up.

Curbside recycling added

St. Albert residents are one step closer to curbside recycling pickup next year.

Council voted 4-3 to add curbside recycling to the 2009 budget starting in June. The service would cost an extra $4.60 monthly charge per household. 

The move would see the average monthly utility bill rise to $86, up from the $81 originally proposed for 2009. Last year, utilities were $74 per household.

Not a done deal

Council is not expected to make a final call on curbside recycling until the new year. That's when they'll receive a list of recommendations for solid waste services. The $4.60 monthly charge is an estimate from a consultant's preliminary findings.

In theory, council could turn down curbside recycling if members found something unfavourable in the final report. If that happens the $81 per month rate would remain.

If council gives the report the thumbs up, administration would begin a public search for a third-party contractor. Service would start June 1.

Recognizing decisions still need to be made, Mayor Nolan Crouse said council should make room in the budget now. Curbside recycling, he reminded, was a hot-button issue during last year's civic election.

"If we do this, we will be addressing one of the biggest concerns our residents have, and one of the biggest opportunities that's ahead of us with the environment."

The vote was close, with Coun. James Burrows leading the charge in favour of the status quo. St. Albert's existing recycling depot, he said, is well-used by citizens. He also disagreed about the public demand for curbside recycling, claiming it's not coming up in conversations at local coffee shops or banks.

"This is not warranted," he said.

How they voted

In favour: Nolan Crouse, Len Bracko, Roger Lemieux, Lorie Garritty

Against: James Burrows, Carol Watamaniuk, Gareth Jones

Tax-o-meter at 6.31 per cent - UPDATED

Next year's property tax increase has be lowered to 6.31 per cent.

The city's tax-o-meter — a gimmicky term city hall uses to describe what really is an updated spread sheet and bar graph — spit out the latest figure after city council continued its cutting ways Tuesday.

Council formally cut fuel costs by $375,000 and eliminated some $304,000 in Alberta Health Care premiums. They approved another three dozen changes to the operating budget, many smaller cuts or additions.

Here are some highlights:

• Increase police revenue by $200,000 via photo radar (could be through more photo radar operators, increased patrols, lower tolerances, etc.)

• Cut $87,800 from the Riel Recreation Park operating budget, reducing it to $118,000

• Cut $50,000 grant for Northern Alberta Business Incubator, reducing it to zero

• Cut $35,000 from Alberta 55 Plus Games Winter Games budget, reducing it to $150,000

• Cut mayor and council training budgets by $1,000 each

• Cut $5,000 from council's travel budget to attend Federation of Canadian Municipalities conference

• Cut $5,000 for idle-free bylaw public awareness campaign, reducing it to zero

As one reader pointed out, council did also endorse new culture and recreation fee rates. Arts guilds will see increases next year, but will not pay more than 65 per cent of full operating costs. The fees are as follows:

Potters' guild, $7,500; Painters' guild, $2,000; Floral arts, $600; Quilters, $1,200; Paper arts, $500.

Council defeated a motion to charge $2,000 for studio space used by the Profiles Public Art Gallery for children's art classes. Profiles will continue pay nothing.

Council still has some significant motions to debate Thursday, including whether to cut Servus Place expenses and raise revenues.

The debate over delaying the addition of nine firefighters has been put over until Dec. 22, when the fire chief is available.

Tax hike at 6.99 per cent

St. Albert homeowners face a 6.99 per cent tax increase next year, after council trimmed away at several staffing positions Monday.

Next year's property tax hike officially sits at 8.05 per cent, down from the 8.97 per cent first proposed.

Council is expected to reduce that to 6.99 per cent when they approve revised fuel forecasts and delete Alberta Health Care premiums for staff. Both are considered formalities. 

The property tax relief came after council cut eight budget requests for staffing at Monday's budget meeting. The cuts affect everything snow and ice removal and road maintenance in public works to fundraising for Servus Place, the 150th anniversary and other events.

The tax hike could be reduced even more following tonight's budget meeting, when council begins debating the rest of the operating budget.

The meeting starts at 4 p.m.

Mayor appeals for cuts

The mayor is the public face of city council. He chairs the meetings, works full-time and attends pretty much every event of significance in St. Albert.

But when it comes to trimming next year's near 8.97 per cent tax hike, Nolan Crouse is just one vote among seven. 

Sometimes the votes don't go your way.

That was the case Saturday, when council approved $1 million to top up road maintenance next year. The extra spending — which city engineers did not request — will be funded with a mix of grants and tax dollars.

In the lead up to Saturday, council had managed to trim $245,000 worth of tax-funded projects from the 2009-11 capital budget. In theory, that's money they could have cut from the capital fund to reduce next year's tax increase by 0.4 per cent.

Coun. Len Bracko had other ideas when he said council should increase infrastructure spending by $1 million. With some $3 billion in infrastructure assets, the city doesn't put near enough dollars into maintenance, he argued.

Crouse, however, strongly objected to putting dollars into a pot "without any level of specifics."

But aside from Carol Watamaniuk, the mayor was alone on this one, and clearly frustrated.

Just minutes later, while defending a motion to cut $200,000 for a backup disaster recovery site, Crouse delivered a pointed speech.

"We must, sooner or later, make some tough decisions," he said. "We were at 8.9 per cent and any of the pay as you go (tax dollars used for capital projects) we freed up, we continue to find ways to spend."

He later added this lecture: "I need to remind council of our priorities. I clearly think we need to make tough calls."

Council begins debating staffing requests on Monday. They'll resume committee of the whole budget deliberations after the regular council session.

Bypass needed

The City of Red Deer wants $107 million from the province to pay for a $133 million northern bypass.

While this isn't exactly related to St. Albert's 2009 operating or 2009-11 capital budget, it's an issue that relates to our local history. I suppose there's a slight budget tie in with the $45 million in the 2009 budget for stage three of our bypass, Ray Gibbon Drive.

Perhaps Red Deer will be able to swing a similar deal with the province.

Reserves aren't free

With $130 million at stake, it's a heady task to prioritize which capital projects deserve to be in the 2009-11 budget. Sometimes the funding source is the deciding factor in the debate.

During capital budget debates this week, council members scrutinized how each project could be funded. Capital projects and equipment are funded with a mix of government grants, reserves, property taxes, offsite levies and, in rare instances, debt.

Council took keen interest in whether projects could be funded with grants, reserves or pay as you go (a fancy term for tax dollars that are set aside annually for capital projects).

Coun. Lorie Garritty defended the construction of a $140,000 dog park, arguing it won't cost taxpayers because the money is coming from reserves. (And a $10 hike to dog licence fees will eventually replenish the account).

Alternatively, reserves sometimes come into play when council does not want to support a project.

Mayor Nolan Crouse used reserves as part of his rationale for not approving two projects this year — extra funding for the St. Albert Housing Society's $19-million apartment building project, and the AltaLink relocation. Of the later, he said council would have to raise taxes to replace the $450,000 needed.

(I do not mean to single the mayor out, but those are the two most recent examples. And by the way, council did give the housing society $150,000 for that project, about $90,000 less than requested).

The whole idea behind a reserve is to accumulate cash to avoid a large single-year tax hit. Depending on the type of project, reserves are funded through developer levies, utility fees or taxes. Some $2.7 million in property tax dollars will be transferred to reserves next year for future capital needs.

Crouse and Garritty both have a point. Reserves do not immediately cost the taxpayer, but in the long term there can be a cost impact.

Reserves are not free.

Spending cuts, additions

Council started debating the 2009-11 capital budget this week. The debate continues Saturday morning with the capital budget and staffing requests on the agenda.

Here's a list of changes council has made so far.

• Add $400,000 for the community tourism strategy (approved)

• Add $160,000 for a community recognition tribute in the downtown (approved)

• Add $75,000 for upgrades to the Mission tennis courts (approved)

• Delete $371,200 for affordable housing (approved - St. Albert Housing Society has already committed to raising this money)

• Delay $275,000 for St. Albert Place repairs by one year (approved)

• Delete a $200,000 study for a satellite public works shop (approved)

• Delay $44,000 for a municipal enforcement officer patrol car until 2011 (approved)

• Delay $25,000 for murals in Servus Place until 2010 (approved)

A few motions to cut funding were defeated:

• Delete $135,000 for civic building security upgrades 

• Delete a $27,000 truck purchase for Fountain park pool (defeated)

Fuel savings

Declining fuel prices could save the city $375,000 in 2009. That could lower next year's 8.97 tax increase by about 0.6 of a percentage point.

The savings is due to the administration revising its fuel forecast, lowering it by 25 cents to $1.25 per litre. The original estimate was calculated several months ago, before the price of crude went into the tank.

The $375,000 in savings are based on 1.5 million litres of consumption.

Mayor Nolan Crouse introduced a motion at tonight's budget meeting to make the fuel forecast official. It still needs to be debated, likely next week, but really is  just a formality.

Debate begins

Officially, city council was not supposed to begin debating the 2009 budget until Wednesday.

However, council informally kicked off debate on Saturday after members traded words with two separate organizations.

The first came when St. Albert Taxpayers' Association president Lynda Flannery presented her organization's views about civic spending and the proposed 8.97 per cent tax increases.

Flannery recommended council to cut spending by reducing staffing positions and growth-related capital projects. She criticized both the city's use of the municipal price index and municipal comparators as justifications for increased spending.

With the economy slowing, Flannery said the city should hold off on completing stage three of Ray Gibbon Drive until development begins in the annexed lands. She also recommended slowing down recruitment for fire hall No. 3 until growth picks up.

The Riel Park reclamation work also fell under the association's scrutiny. Flannery said the city should proceed with landfill capping and grading in the area, but not the $6.8 million needed to return areas like the soccer and rugby club back to their original state.

Coun. Lorie Garritty applauded the association for providing feedback about the civic budget. However, he took the opportunity to rebut several of the association's suggestions, particularly for Riel Park.

Normally, that kind of rebuttal is not tolerated by the chair. Council debates council, not public appointments.

Later the same meeting, Mayor Nolan Crouse participated in a debate of sorts about the need for a $20-million branch library. The mayor said the proposal — which is not contemplated for at least three years — does not add up when looking at a 10-year decline in library membership and visitors.

While it would be an overstatement to call the subsequent exchange with library board chair Kelly Aisenstat "heated," it was more tense than most placid dialogue at council meetings.

It concluded with the mayor asking the library board to "invite me to the library when it's full."

At least council is warmed up for what could be several more hours of debate.

Mirror, mirror

Residents are facing an 8.9 per cent tax increase and a hike to utility rates that is near double digits.

We're talking about St. Albert, right? 

Nope, Strathcona County.

According to the Sherwood Park News, Strathcona County is looking at an 8.9 per cent property tax increase, and 9.9 per cent utility rate hike.

That's rather close to St. Albert's 8.97 per cent tax hike and 9.0 per cent utility rate increase.

One wonders if the parallel is due to similar budget assumptions, such as sharing the same municipal price index.

Given the 13 per cent Edmonton is facing, it appears times are tough in the region.

Cash flow, round three

City council has raised a scalpel toward next year's 8.97 per cent property tax increase.

By Tuesday, more than 60 motions were raised to cut or add funding. The cuts amount to $2.7 million for 2009 alone, with other capital changes proposed in 2010 and 2011.

Spend thrift

Here's a sampling of recent cuts proposed for 2009. (For past motions click here).  

• Cut $371,2000 for affordable housing from the capital budget. (Lorie Garritty). Note: the city previously asked the St. Albert Housing Society to raise the funds, as a condition of $740,000 in grant. 
• Cut $200,000 from Servus Place's material, goods and supplies budget (Nolan Crouse)
• Cut $105,800 for Riel Recreation Park operations (Nolan Crouse)
• Cut $100,000 from the snow and ice removal budget (Nolan Crouse)
• Cut $100,000 from Servus Place's contracted and general goods budget (Nolan Crouse)
• Cut $30,300 for a landscape technologist (Nolan Crouse)
• Cut $32,100 from the environmental management system program by reducing proposed staff to a half-time position (Nolan Crouse)
• Cut $25,000 from the 150th anniversary budget (Len Bracko)
• Cut $25,000 for murals at Servus Place (Roger Lemieux)

• Cut $20,000 for SmartDriver program (James Burrows)

More cuts

A few motions targeted significant capital spending beyond 2009:
• Cut $2.4 million from the 2010 capital budget for Riel Park landfill reclamation (Nolan Crouse)

• Cut $1.4 million from the 2010 utility capital budget for Riel Park remediation (Nolan Crouse)

Hold off

Council also made a few motions to delay spending:
• Defer for one year $216,200 from snow and ice control budget (Len Bracko)
• Defer for one year $225,000 for a tandem truck/snow plow (Len Bracko)
• Defer for one year $400,000 for St. Albert Place upgrades over 2010-11 (Nolan Crouse)

Spend more

Council members also introduced motions to increase or fast track spending:

• Fund $88,500 for RCMP youth asset development officers starting in 2009, not 2010; Fund $205,000 for asset development in 2010, not 2011 (Lorie Garritty)

• Fund $25,000 for a train whistle bylaw (Nolan Crouse)

All motions will be debated starting Nov. 26.

Debt solutions?

What to do when faced with a double-digit tax hike? If you're Edmonton Mayor Stephen Mandel, the answer is simple: take on debt.

Mandel this week unveiled a unique plan cut Edmonton's proposed tax hike to 2.6 per cent, down from the 13.1 per cent proposed.

Using debt in more creative ways has also been discussed in St. Albert, where city council was briefed at a committee meeting a few weeks ago.

Corporate services GM Dean Screpnek said at the time the city could inject $50 million into the 10-year capital plan without adding a dime to tax bills. The plan identifies $730 million worth of projects, but the city has funding to complete less than half.

By borrowing the city could shift dollars that it normally would put into the capital fund each year and use that money for debt financing. The $50-million sum was based on debt payments (principle and interest) of $3 million a year over 20 years.

Granted, the borrowed $50 million is less than the $60 million the city would have put into the capital fund over 20 years. But as Screpnek pointed out, with construction inflation factored in over 20 years there's a good chance the city would come out ahead by borrowing and building the projects today.

The added benefit is the city would immediately benefit from the new infrastructure, rather than waiting several years for funds to accumulate.

Of course, every plan has a down side. Coun. Len Bracko can't stomach the idea of handing down more debt to the next generation. The city's debt is already at $1,218 per capita. Bracko has introduced motions not to take on debt as proposed in 2009 for fire station No. 1 ($8.5 million) and stage three of Ray Gibbon Drive ($1.9 million).

This all shapes up for a good debate when council starts reviewing the 2009-11 capital budget next Tuesday.

Power line plot thickens

Mayor Nolan Crouse threw another curve ball into future budget debates about the relocation of the AltaLink power line.

Crouse today introduced two motions. The first would see the power line relocation moved to the "unfunded" list in the 2009 budget. That means the city would not put dollars toward the move next year.

The second motion was to return the $300,000 the province gave the city for the estimated $1-million relocation. Crouse also wants to decline the $450,000 that AltaLink pledged for the move.

Council won't debate either motion until Nov. 26 at the earliest.

Power line, again

It was a squeaker, but city council has agreed to look at the AltaLink power line relocation in the 2009 budget. (For the recent history, visit this archived post).

The narrow 4-3 majority came after council's earlier proposal to have the province and AltaLink spend millions each to bury the line fell flat.

Monday's decision does not guarantee anything, as the relocation could be defeated at budget time. Coun. Carol Watamaniuk pleaded with her peers just to get it that far.

"Please don’t shoot it down yet. Please let it go to the budget process and let’s at least take a look at it properly there.”

Watamaniuk's plea came after council shot down Coun. Lorie Garritty's attempt to make option three — running the line along the east side of Ray Gibbon Drive — a specific business case in the budget.

Coun. Len Bracko argued strongly against the idea, calling the $1-million relocation a "waste of taxpayers' dollars." (The city would pay one third, or $450,000 with a contingency built in).

Bracko then dismissed the findings of the environmental report — written by an AltaLink staffer — that identified the AltaLink line as being in a "high risk" location for bird strikes. He claimed option three would make the problem worse, and mar the view of Lois Hole park east of Ray Gibbon Drive.

Watamaniuk was puzzled with Bracko's statements. She noted option three was supported by the city's office of environment, the province, AltaLink and council's environmental advisory committee. 

"[AltaLink is] so convinced they’re willing to put good dollars into this, as is Alberta Tourism, Parks and Recreation."

Coun. Gareth Jones — who in the past has been far from convinced about any of the proposed options — provided the swing vote needed to revisit the issue at budget. Jones conceded he has doubts about the price tag, given the new alignment would cross the former Riel Park landfill. He called the area a "money pit."

In addition to looking at the issue at budget, staff were instructed to look into possible federal or provincial grants as a way to pay for the city's share.

Read more in Wednesday's Gazette.

Taxes and pitch forks

If it's action you crave, you likely won't find it at city hall.

Don't get me wrong, council makes hundreds of important decisions a year from inside chambers. The work at St. Albert Place keeps our roads in good order, and city programs operating.

But when it comes to thrills and spills, the polite parliamentary proceedings at city hall will not exactly jolt spectators from their seats.

Of course, St. Albert has had its share of hot-button issues. Emotions flared last spring during rezoning hearings for Amacon's proposed redevelopment of Grandin Park Plaza.

The spring also saw the plaza in front of St. Albert Place turn into a stomping ground for fed up taxpayers who petitioned steep increases driven by haywire changes in property values.

There was plenty of backlash about Servus Place's $2.2-million deficit last year. The Gazette received angry letters blasting council and administration for poor oversight. But when the public had an opportunity to sound off at a town hall meeting, all but a few choice criticisms were levelled. Measured emotions and well-meaning suggestions ruled the day.

Word has it a few f-bombs were thrown council's way at a recent budget open house at St. Albert Centre. But that incident aside, no one at the Gazette remembers a time when accusations of a "dictatorial rule" were hurled the mayor's way.

Through all the ups and downs, cheering and hissing from the public has, for the most part, stayed in check during St. Albert council business.  Credit for the decorum goes to the mayor, both present and past, along with residents who usually stop themselves at "mild" finger pointing.

As the Calgary Herald reported in the above link, that was not the case in southern Alberta over the weekend. Tempers were in overdrive over a proposed 25 per cent property tax hike over three years.

The griping was not limited to the public, with Calgary Ald. Diane Colley-Urquhart leading a petition to return to single-year budgeting.

The petition and extreme insults aside, it sounds familiar, doesn't it?

Just one month ago St. Albert residents were looking at a 28 per cent tax hike compounded over three years. After much debate, council opted only to look at 2009 an a proposed 8.97 per cent tax hike.

The decision was partly driven by the shifting economic landscape. However, as Coun. Roger Lemieux astutely observed, it doesn't look good to go to the public with three years of tax increases exceeding 25 per cent.

Who knows the kind of public reaction that might have ensued had council gone ahead with its three-year budget.

St. Albert and Calgary are two completely different cities, but they, like all places have something in common. When taxpayers are pushed far enough, long enough, some are bound to push back.

Mayor wants more

Mayor Nolan Crouse is not afraid of asking for more from city administration. While reviewing next year's budget for Servus Credit Union Place, the mayor issued two straight forward motions: raise revenues by another two per cent and cut spending by two per cent.

"I just want to make sure we're pushing ourselves to the maximum," Crouse later told the Gazette.

The motions, to be debated later this month, came after council spent 90 minutes Thursday reviewing the Servus Place budget. The facility is budgeted to lose $1.7 million in 2009, slightly more than the year-end forecast for 2008.

The 2009 budget continues positive momentum made since the $2.2-million loss that caused a firestorm in late 2007.  Since the Servus Place task force, costs have been cut and revenues increased. This year the facility is on pace to lose $550,000 less than the $2.1 million deficit built into the amended 2008 budget.

Next year's budget forecasts $9 million in revenue and $10.7 million in spending.

Membership dollars, which account for about 60 per cent of revenue, is expected to increase 11 per cent in 2009. Part of that is due to fee hikes that came into effect in September, but there is also a goal of selling 5,981 membership units, up from 5,500 units in budget 2008. (A family of four equals four members, but one paid membership unit.)

Don't pass out the gold stars yet. The mayor continues to assert administration is too conservative with the numbers.

The mayor's motions highlight the delicate balancing act that is the Servus Place budget.

On one hand, the public demands improved fiscal performance and accountability, rightfully so.

But on the other hand, if the budget aims higher than Servus Place can deliver, the city risks the possibility of having to go back to taxpayers (again) to make up the difference. That likely would re-ignite the public backlash that erupted last spring (which some have argued was a carryover from the 2004 plebiscite results).

Another poor showing would be disastrous, indeed.

Power line pass

City council's pitch to have the province and AltaLink pay millions to bury the Big Lake power line has hit a brick wall.

The Gazette's environment reporter Kevin Ma has full details in today's paper. I'll just provide a brief recap. 

The gist: council is back at square one. They can either pony up or stick with the status quo.

The issue: a 138-kilovolt line is blamed for bird deaths and viewed by some as a blight near the future entrance to Lois Hole Centennial Provincial Park. The relocation is not in St. Albert's 2009-11 capital budget.

The history: council last month balked at paying $450,000 to join a partnership and move the power line from its current path near the Big Lake Environment Support Society viewing platform. The new alignment would see the power line run along Ray Gibbon Drive. Power line owner AltaLink had pledged $450,000 for the move, while Alberta Tourism, Parks and Recreation gave the city $300,000.

The decision: council instead asked the province and AltaLink to foot the bill to bury the line, a $6.3 million cost, or build it into a walkway, an $8.5 million never-been-tried endeavour.

The update: council met with St. Albert MLA Ken Allred on Monday, who advised the province won't contribute any more dollars. Allred even sounded somewhat critical of council's decision.

"It seems the city is sort of reneging here a bit," he said.

AltaLink officials also said the more expensive deal will not fly.

The future: city manager Bill Holtby will follow up with Alberta Tourism, Parks and Recreation to confirm Allred's feedback. Then he'll report back to council.

Ray Gibbon Drive - update

Christmas could come a day early for St. Albert.

Mayor Nolan Crouse said today the city and province could settle the tab for Ray Gibbon Drive by Dec. 24. However, it might be a while longer before the city has cash in hand.

If you recall from earlier posts, the city requested $45 million from the province as payback for ensuring Ray Gibbon Drive can one day be converted to an eight-lane freeway. That sum represents dollars the city otherwise would not have spent for a standard two-lane road — extra land for a wider right of way, interchanges, design costs, etc.

The mayor came away from a meeting last week with Transportation Minister Luke Ouellette convinced there are no remaining political hurdles.

"Politically, we're in agreement," Crouse told the Gazette today.

Provincial bureaucrats will crunch the numbers one last time. If there are no problems, both administrations have been instructed to sign off on the funding deal by Dec. 24.

Cash in hand

Once that happens, the only remaining question is when will the city have cash in hand. The city wants to use the $45 million to pay for the lion's share of stage three costs, estimated at $47 million. Administration proposes borrowing the remaining $1.9 million.

The city wants either the cash or a commitment by Jan. 31, 2009 so construction on stage three can start next spring. The city needs to complete two lanes to Villeneuve Road to hold up its end of the agreement.

Crouse said it's possible the city will have to wait until the province has a clearer picture of its year-end surplus. Any serious delay could push construction to 2010.

Read more in Wednesday's Gazette.

All quiet on the budget front

City council is taking a small break from budget meetings.

Due to the Remembrance Day holiday, the next budget meeting takes place this Thursday, Nov. 13.

Thursday's line up should be interesting as it includes several noteworthy presentations, including one for Servus Credit Union Place. It will be Servus Place's first budget since the 2007 and 2008 deficit and subsequent citizens' task force report.

Administration forecasts a $1.67 million deficit next year, according to the 2009 operating budget. The city predicts a 77 per cent cost recovery rate, similar to this year.

While council won't be approving spending beyond next year, it's worth noting the Servus Place deficit is projected to increase the following two years. That means budgeted losses of $1.83 million in 2010 and $1.85 million in 2011.

Council has not shied away from raising tough questions during their monthly Servus Place fiscal updates. Expect a similar performance on Thursday.

Also on the Nov. 13 budget schedule is the planning and engineering divisional overview, plus presentations from the engineering department, office of the environment and public transit.

The office of environment presentation could prove interesting if it focuses on landfill remediation in Riel Park.

There are several public transit items in the budget, including a park 'n' ride station south of the Superstore. 

With parking at the current Village Landing station a tight squeeze (to put it mildly), it will be interesting to see how council greets such initiatives.

The meeting starts at 4 p.m. in council chambers. It will not be televised.

Cash flow, round 2

City council members aren't shy about trimming away at the 2009 operating and 2009-11 capital budget. Several new initiatives are under early scrutiny, from the 40 new full-time staffing positions proposed to the two dog parks that led to many questions Thursday.

At the same time, there's no apprehension about adding spending as needed. Here's a run-down of deletion/addition motions that were introduced Nov. 6. All motions will be debated starting Nov. 27.

Spend thrift

Proposed cuts:

- Fundraising manager, $90,000 in 2009 (Roger Lemieux).
- $25,000 to develop a new tourism website (Roger Lemieux).
- Remove $400,000 from community capital program - money set aside for grassroots projects (Carol Watamaniuk).
- Remove purchase of an $27,000 maintenance truck for Fountain Park Recreation Centre (Roger Lemieux).
- Cut $35,000 from 2011 Alberta 55-Plus Winter Games, to match bid package (Nolan Crouse).

Spend more

Proposed additions, funding changes, approval motions:

- That $60,000 in budget for youth asset development program be approved (Gareth Jones).
- That $160,000 for the community capital program be funded with unallocated provincial grants (Nolan Crouse).
- Add $10,000 for mock disaster exercise to emergency management budget (Lorie Garritty).

Also, Carol Watamaniuk introduced a motion to not charge higher rent to St. Albert Place Visual Arts Council until staff complete a fiscal analysis.

Council resumes budget deliberations on Thursday.

Cash flow

Council on Tuesday kicked off the 2009 operating and 2009-11 capital budget review. 

The first five-hour session focused on department budgets for city council, the city manager's office, corporate communications, business and tourism development and common & fiscal.

Tuesday featured several motions to cut or add spending. Motions will not be debated until Nov. 27. Here's the breakdown, with the council member responsible for the motion in parenthesis:

Spend thrift

Proposed cuts:

- Corporate planning co-ordinator, $50,600 in 2009 (James Burrows).

- Geographic information system capital equipment worth $195,000 over 2009-11 (James Burrows).

- Alberta Health Care premiums — $304,000 remains in the budget, a leftover from when the city paid for premiums for staff. The province starts paying next year (Lorie Garritty).

- Seniors’ property tax rebate, $55,000 (Nolan Crouse: delete funding until policy is in place).

- Reduce business and tourism development’s contracted services budget by $25,000 in 2009 (Nolan Crouse).

- Reduce council’s training budget by $1,000 per member (Nolan Crouse).

Spend more

Proposed additions:

- $400,000 in capital budget for the community tourism strategy in 2009 and 2011. This item was previously unfunded (Nolan Crouse wants to fund it using unallocated provincial grants).

- $10,000 for an idle-free public awareness campaign (Lorie Garritty).

Budget meetings continue tonight with presentations from culture, recreation, Family and Community Support Services, emergency management and fire services.

Recreation and culture fees, Part 2 of 2

It's going to get more expensive to rent city-owned sports facilities and arts studios.

Culture and recreation groups are being asked to pay an extra $188,592 in fees next year, the first of a three-year plan to up revenues. The first across-the-board hike to fees in more than 20 years is expected to generate $253,206 by 2011.

If approved when it goes to council in two weeks, arts groups can expect to pay more to rent the arts studios that have been a mainstay at St. Albert Place since it opened nearly 25 years ago. Hikes are also proposed for Arden Theatre rentals.

The city wants to recoup 65 per cent of the cost to run the arts studios through fees (which in turn are raised by the user groups through membership dues and other fundraising). The remaining 35 per cent would be subsidized by taxpayers.

Here's a look at proposed increases. The cost to each group is based on their estimated usage of arts studio space.

Potters' guild
$13,081 (current)
$15,000 in 2009
$20,000 in 2010
$23,565 in 2011

Painters' guild
$1,817 (current)
$2,200 in 2009
$2,700 in 2010
$3,366 in 2011

Floral arts society
$346 (current)
$1,000 in 2009
$1,500 in 2010
$2,072 in 2011

Quilters' guild
$908 (current)
$1,800 in 2009
$1,900 in 2010
$2,072 in 2011

Paper arts
$318 (current)
$1,000 in 2009
$1,700 in 2010
$2,330 in 2011

The Arts and Heritage Foundation would, for the first time, be required to pay for studio space to run Profiles Public Art Gallery's arts eduction program.
$5,400 in 2009
$10,800 in 2010
$13,812 in 2011

Arden Theatre
It's going to get more expensive for local not-for-profit groups to rent the Arden. Annual fee hikes of 15 per cent are proposed for 2009-11. The local and non-local rates will only increase five per cent since they're already within the market range.

The new fees will add $1,400 to the Arden Theatre in 2009, $2,400 in 2010 and $200 in 2011.

The complete finance and audit committee report can be found here (Nov. 3 meeting). Council will review this again in two weeks.

Recreation and culture fee hikes, Part 1 of 2

It's going to get more expensive to rent city-owned sports facilities and arts studios.

Recreation and culture groups are being asked to pay an extra $188,592 in fees next year, the first of a three-year plan to up revenues. The first across-the-board hike to fees in more than 20 years is expected to generate $253,206 by 2011.

If approved when it goes to council in two weeks, sports groups can expect hikes to hourly rates for aquatics facilities, Fowler athletic track, sports fields, the new multi-purpose facility in Riel Park, indoor and outdoor arenas, clubhouses and meeting rooms.

A new policy would make St. Albert fees among the most expensive in the region.

The complete report and attached new rates can be found here (see the Nov. 3 meeting). Or, browse through these notable 2009 sports highlights. Additional increases are planned in 2010 and 2011.

Note: These are hourly rates unless otherwise stated.

Multi-sports field
$52.50 (youth/senior)
$105 (adult)
$37.18 night lights

Sports fields
$8 (youth/senior), up 62% over 2008
$13 (adult), up 58%

Fowler track
$12 (minor sports practice), up 142%
$24 (minor sports event), up 384%
$25 (adult practice), up 203%
$50 (adult event), up 506%
Event day rate: $192 (new)

Fountain Park Recreation Centre
$32.50 (small pool), up 15%
$97.65 (large pool), up 15%
$88.95 (competitive pool), up 15%

Grosvenor Park Outdoor Pool
$35 (main pool), up 53%
$35 (dive tank), up 53%

Single admission rates (both pools)
$3 child - unchanged
$3.50 youth - up 50 cents
$4.50 adult - up 50 cents
$3.50 seniors - up 25 cents
$12 family - up $2

Outdoor rink (with ice)
$18.80 (minor sports with change room), up 5%
$25 (adult with change room), up 8%

Arenas - Mark Messier, Troy Murray, Akinsdale and Kinnex
These rates changed in September, 2008 as per recommendations of the Servus Place task force.

City budget page launches

The city has launched a new section on its website, www.stalbert.ca, for the 2009 operating and 2009-11 capital budget.

The page includes handy budget highlights for citizens who want to stay informed about civic spending as council deliberations continue over the next month.

The posted details obviously pale in comparison to the three-inch binders given to council, but there is some useful information available at the click of a mouse (for those who don't want to go to the library and pour through the budget documents). 

Useful links to check out include "Projections for 2009-11," which gives a breakdown of tax increases and how that money will be spent.

There's also a "Three-year budget highlights" section that gives a listing of notable spending for some positions and operations.

Educational sections that aren't to be missed include, "Why do taxes increase faster than the inflation rate?" and the ever enjoyable, "How are tax rates set and collected?" 

Some wonder about the logic in a heading like "Ongoing plan for no new debt."

This section informs how council in 2005 adopted debt-adverse practices. But then it goes on to say increased need for capital projects and lack of funding means the city has to consider new debt in the future (this section fails to mention the $8.5 million in borrowing proposed for the fire hall No. 1 rebuild, plus $1.9 million for stage three of Ray Gibbon Drive). 

That doesn't sound like an ongoing plan for no new debt. 

Anyway, the city's website will continue to expand with information as departments make their presentations to council. Last night (Tuesday), council heard presentations about their own council budget, the city manager's office, corporate communications, business and tourism development and common and fiscal.

I'll have more to say about budget day one later in the day Wednesday.

Gritty feedback

Local resident Dave Burkhart responds to the funded allotted for grit interceptors in the 2009-11 budget:

The smaller amounts of money ($50,000 in both 2009 and 2010) are for cleaning out the catch basins more often, the theory being that will keep some of the grit out of the river. 

It's not working. The river was almost completely closed off in a couple of places earlier this fall.

It's rather abysmal that the city gets away with this. After all, Transport Canada still classifies the Sturgeon as a navigable river and those sand bars the city has installed definitely impede fish movement. They are no doubt the reason we no longer have Sturgeon (the fish) upstream of St. Albert. I suspect Environment Canada and DFO could make a good case for a prosecution under the Fisheries Act -- were they motivated to do so.

As for the province kicking in money, I hope our mayor isn't holding his breath. The province paid to build the prototype in front of city hall, with the understanding that if it worked the city would continue with the program. Well that grit catcher works, but the health of our river is obviously very low on the priority list with this council because we haven't seen another since it was installed.

I think what fries me the most is the millions of tax dollars going into artificial turf in South Riel. Our mayor can afford to put that in to pay off his campaign promise to the football club but he can't ante up even a token for necessary environmental stewardship. I wonder what it will take to make this council do the right thing, another order from Environment Canada perhaps?

Budget Q & A

Here's a quick response to a few budget questions I received yesterday.

Grit interceptors

Several people asked if there is money in the 2009-11 utility capital budget for hydrocarbon grit interceptors. Yes, there is: $50,000 in 2009, $50,000 in 2010 and $200,000 in 2011. 

If you're wondering, hydrocarbon grit interceptors filter oil and sand from the city's storm water outfalls, preventing them from adding sediment to the Sturgeon River. There's one interceptor, an artificial filter, built underneath St. Albert Place.

A second, much different interceptor was built last year near the Boudreau Bridge. That's where a series of settling ponds were constructed near outfall No. 17 in Braeside. 

It's also worth mentioning dollars are allotted for storm water repairs: $600,000 in 2009, $690,000 in 2010 and $760,000 in 2011. That work includes catch basin repairs and storm pond cleaning.

The grit interceptor cash in the utility budget doesn't come close to the cash needed to prevent further sediment build up in the mucky Sturgeon River. The 2004 storm water management master plan recommended grit interceptors and settling ponds in 23 locations along the river.

The cost? Some $10 million over 10 years (in 2004 dollars) — too expensive for the current utility rate model, city officials said in 2006, when funded was cut back for the 2007-08 budget. 

Mayor Nolan Crouse recently suggested it's possible the city will look for provincial help to pay for additional grit interceptors. At least that was his comment when he said moving the Big Lake power line was not the city's top environmental priority.

And while I'm on the subject of the Sturgeon River's health, there are other projects identified to address sedimentation. The 10-year utility capital plan shows sediment removal as a $2-million expense in 2013. Can you say dredging?

Dog park: $240,000 over two years

The other question/comment I received was about proposed dog parks, with one resident arguing it shouldn't be a priority.

Two dog parks are proposed, starting with Lacombe Lake Park in 2009. It will cost $100,000 to install a chain link fence, signage and waste bins to make the "unofficial" doggie park an official off-leash area. 

The city has identified a second possible dog park along Levasseur Road in Heritage Lakes (underneath the AltaLink power line). This would cost $140,000 in 2010. The city would need to build a 20-stall parking lot at Hudson Road.

Keep your questions coming. You can comment at the link below or email me at balary@stalbert.greatwest.ca.

Municipal price index

There's two schools of thought about using a six per cent municipal price index (MPI) to explain the city's budgetary pressures.

The city's position is it's an education tool to help citizens understand why property tax increases do not follow the lower consumer price index (CPI). The city buys a certain basket of goods that are unique to municipalities — construction materials, equipment, etc. — and different from some of the household items included in CPI.

Spending hawks argue it's pure public relations, a means to justify spending that's well beyond the rate of inflation most applicable to average citizens (I prefer Mr. and Mrs. St. Albert over Joe the Plumber, to be honest).

The truth probably is somewhere in the middle — public education expressed in a slick graphic that's deliberately front and centre during budget presentations.

There's no quesion St. Albert, like the rest of the region and Alberta, has been hit hard by inflation. But does the MPI vs. CPI debate really matter?

Every year a segment of the population advocates capping property taxes at CPI. It seems unlikely that city council would be able to whittle the 8.97 per cent proposed for 2009 down to something in the 3.5 to 4.0 per cent range, which is where CPI has been hovering lately.

No one on council is calling for service-level cuts. If anything, it's the opposite. 

Mayor Nolan Crouse probably said it best this week, that MPI won't be a factor in his mind during the budget review. He'll be considering whether spending is justified at this particular time for this city.

The final spending tally this budget season will come down to priorities, not an inflation index. That begs the question whether council's priorities jive with Mr. and Mrs. St. Albert's. 

What do you think?

2011 capital budget

Council will review a 2009-11 capital budget this fall. Here's a look at 2011 (2009 and 2010 can be found in older posts).

Total spending: $21.1 million

Funding breakdown:
 - Grants: $16.4 million
 - Taxes: $3 million
 - Reserves: $1.7 million

What's in

Public works snow storage, $625,000

The city already has $1.2 million in the bank for this project.

Veness Road upgrade, $700,000

Improves what is now a rocky road to the North Campbell Business Park.

Transit satellite garage, $500,000

Buys land for a future garage to store new buses.

What's not

Northeast arterial (realigned Villeneuve Road), $14.1 million

Cost to build the first two lanes of the first major road in the annexed lands.

Badger servicing, $10 million

This cash is needed if the city decides to pay for servicing its 32 hectares west of Wal-Mart.

Servus Place fitness and wellness expansion, $5 million

More dollars to address the cramped fitness area.

Branch library, $4.5 million

The remaining funding need to build a second library. 

Southwest arterial (LeClair Way), $3 million

Ties into the section of LeClair Way (planned in 2009) between Sir Winston Churchill Avenue and the Riel Drive extension.

Transportation action plan, $2 million

Study to identify ways to improve transit speed and reliability, including light rapid transit.

2010 capital budget

Council is reviewing a 2009-11 capital budget this fall. Here are some highlights from year two.

Total spending: $37.3 million

Funding breakdown:
 - Grants: $20.2 million
 - Reserves: $5.7 million
 - Taxes: $2.9 million
 - Debt: $8.5 million *

* Debt proposed to rebuild fire hall No. 1

What's in

Fire hall No. 1, $9.5 million *

This would pay to rebuild or renovate (it's about the same cost, apparently) the city's fire hall on Sir Winston Churchill Avenue. 

Riel Park redevelopment, phase two, $6.5 million

This is related to landfill remediation work that's in the utility capital plan (another $6.3 million between 2009-12). The remediation work includes capping and grading. This returns the area to its previous state.

Transit replacement plan, $3.5 million

Replaces three of the 18-metre extended buses, plus other equipment.

Heritage sites plan, $1.5 million

This continues work from the 2005 heritage sites master plan, for the river lot area adjacent to the Meadowview ball diamonds.The city and Arts and Heritage Foundation want to create a European and Métis settlement using historic buildings currently sitting empty on site. This plan determines how to service the area and where specifically everything will be located. (There's also $150,000 in the 2009 budget for this project).

Far north transit park 'n' ride, $500,000

Buys land needed for a future park 'n' ride station north of Wal-Mart. It won't be built until 2016, according to the 10-year capital plan.

Lion's Park refurbishment, $400,000

Spiff up the park and winterize the washroom facility so it can be used as a warm-up site during winter.

What's not

There's quite a few in 2010.

St. Albert Road urbanization, $15 million

With annexation complete, council needs to determine if it wants to narrow the right of way for the section of Highway 2 in the new limits, making it consistent with the rest of St. Albert Road. This would improve intersections and storm water management.

Branch library, $14.2 million

As stated in the 2009 post, the city's looking at three potential sites: Erin Ridge North (an undeveloped area planned by Landrex), the Badger site (west of Wal-Mart and currently home to the compost yard), and the future Hole's development in South Riel.

South transit park 'n' ride construct, $4 million

The city has dollars to buy the land in 2009, but funding is lacking to complete the work. (I missed this when I posted yesterday about $500,000 paying for all of the work in 2009. My apologies.)

Transit priority implementation, $2 million

Study that will determine ways to improve transit reliability and speed.

Former public works yard clean up, $1.5 million

The city sold this Riel Park land years ago, but it's still contaminated with road salt. Legally, the city has to pay for it at some point.

Servus Place fitness and wellness expansion, $550,000

There's $200,000 in the 2009 budget to come up with an expansion plan, but there are no dollars allocated for the actual work. Perhaps it's just a coincidence, but the city is projecting the 2008 Servus Place deficit will be less than anticipated, leaving an extra $551,000 at the end of the year. (The expansion is needed to alleviate the prime-time workout space crunch.)

2009 capital spending

City council will review a three-year, 2009-11 capital budget next month. This may look like a repeat of an earlier post, but the proposed budget contains a few changes from the 10-year capital plan. Here are a few highlights:

Total spending: $78.7 million

Funding breakdown
 - Grants: $67.9 million *
 - Taxes: $3.9 million
 - Reserves: $2.7 million
 - Offsite levies (roads): $2.2 million
 - Debt: $1.9 million **

* This includes $45 million from the provincial government as a payback for Ray Gibbon Drive, money that would go toward stage three to Villeneuve Road.

** Debt proposed to complete stage three of Ray Gibbon Drive.

What's in

- Ray Gibbon Drive stage three, $47.4 million

This will complete two lanes from Giroux Road to Villeneuve Road, plus all the land  needed for a wider right of way and interchanges to accommodate an eight-lane freeway. It also includes pre-grading of the next two lanes.

- Southwest sector arterial (LeClair Way) phase one, $4.9 million

Access to Riel Business Park from Ray Gibbon Drive. This arterial road will connect to the Riel Drive extension (work underway now) to Ray Gibbon Drive

- Transit buses, $2.6 million

New buses for route expansions and ridership growth. Does not include ridership increases related to the U-Pass.

- Bridge repairs, $2.5 million

The city repaired the Perron Street Bridge this year. Next year it's time to work on the St. Albert Road and Sir Winston Churchill bridges.

- Transit garage expansion phase two, $2.5 million

More offices, storage, driver facilities and dispatch areas. 

- Fire hall No. 1, $500,000

The first year of funding (possibly for designs) to complete a rebuild or renovate the fire hall on Sir Winston Churchill Avenue.

- South park 'n' ride, $500,000

Buys land for a new park 'n' ride station near Superstore (just north of the future ring road). It will replace the Village Landing station.

- Riel Park reclamation study, $300,000

This study will provide a plan and designs for the next phase of landfill remediation and surface work needed at Riel Park. The work is to start in 2010, split between the utility and capital budget. 

Note - There are plenty more that I didn't post here. Administration is proposing 67 budget requests in total (with identified funding). There are three more that didn't make the funded list (which council can change if they want), including this one below.

What's not

Library branch planning and design, $1.2 million

Pretty self explanatory. The city is looking at three potential sites for a second library: the new Hole's in South Riel, the Badger lands and Erin Ridge North.

One-year budget

After much debate last night, council opted to review a one-year operating budget and three-year capital budget. 

Council voted 4-3 to "focus" their time and attention on the 2009 operating budget that administration has prepared. They will not penetrate the 2010 and 2011 budgets.

The issue was renewed by Coun. Roger Lemieux who felt more comfortable with an annual spending review given the changing economic landscape. But his idea to create a brand new 2009 budget was amended (at the suggestion of Mayor Nolan Crouse) to focus on using the existing 2009 document.

Council will proceed as planned and review a three-year, 2009-11 capital budget.

The 2009 operating budget calls for $101 million in municipal spending. 

Homeowners can expect an 8.97 per cent increase. Non-residential commercial and industrial businesses face a 10.47 per cent hike.

The utility budget calls for $22 million in spending, and a 9.5 per cent hike in rates. 

The 2009-11 capital budget calls for $78 million in construction projects and equipment in 2009, followed by $37 million in 2010 and $21 million in 2011.

Council begins a department-by-department review of budget proposals starting next Tuesday, Nov. 4, a process that could extend to Dec. 8. The first opportunity for public input is Nov. 6.

Complete copies of the budget are available at the St. Albert Public Library (second floor in the resource room), or for purchase from city hall. A budget overview will also be posted on the city's website.

Why spend on stage three?

Lynda F. raised a good question in a comment she posted on the blog today. Namely, why would the city want to consider paying for stage three of Ray Gibbon Drive in the current economic climate?

Those answers will come out during the budget meetings, but I can offer my interpretation.

If the city doesn't build the first two lanes to Villeneuve Road, St. Albert in effect is not holding up its end of the deal that was agreed upon in principle by Premier Ed Stelmach and former mayor Paul Chalifoux.

The deal states that if St. Albert builds the first two lanes from 137th Avenue to Villeneuve Road, the province will reimburse the city for all dollars spent to ensure the road can one day be converted into a freeway.

The payback covers land that was (and some that still has to be) purchased for a wider right of way to accommodate up to eight traffic lanes, interchange land, extra design costs, etc. for all three stages. 

The city has crunched the numbers (which are still in the hands of Alberta Transportation)  and those extra costs add up to $45 million.

The province has also agreed to make Ray Gibbon Drive a highway bypass. That means they'll one day pay to extend the road beyond Villeneuve Road (some of that extension will be in the city's jurisdication) to Highway 2 just south of Morinville. The province will also pay to widen the road, as traffic counts warrant. 

No stage three = no payback = the province won't pay to extend the road north of Villeneuve Road to Highway 2 south of Morinville = no highway status = no future widening on the province's dime.

The city's plan is to use the$45 million payout from the province to pay for the bulk of the $47 million stage three. That means the city needs to find $1.9 million of its own funding for stage three.

Given the amount of money spent to date on non-arterial road costs and time put into negotiations with Alberta Transportation, I would be extremely surprised if council decided not to continue with stage three.

2009-11 budget operating highlights

The draft 2009-11 budget was released on Friday. It calls for $123.4 million in spending next year (municipal and utilities), $133.8 million in 2010 and $145.7 million in 2011.

Although a three-year budget is not a foregone conclusion (given Coun. Roger Lemieux's pending motion tonight to revert to a single year), here is a year-by-year breakdown of operational spending highlights. I'll do a separate post on the capital side.

Note: these are proposed budget items.

2009
Proposed tax increase: 8.97 per cent
Municipal spending: $101.1 million
New operating requests: $2.4 million

Operating highlights

- Fire station No. 3 staff, $540,000

- Servus Place lifecycle plan (repairs and equipment), $300,000

- Snow and ice control (roads - restore standards), $216,200

- Downtown area redevelopment plan, $189,000

- Riel Recreation Park maintenance/operations, $205,800

- 2011 Alberta 55-Plus Winter Games, $185,000

- 150th anniversary celebrations, $150,000

What didn't make it (highlights):
- Tree bylaw implementation, $100,000; Capital Region Board (CRB) initiatives, $100,000; incentives for affordable housing, $150,000

2010
Proposed tax increase: 8.41 per cent
Municipal spending: $109.3 million
New operating requests: $5.6 million

Operating highlights

- Extra office space, $1 million

- Fire station No. 3 staff, $720,000

- Servus Place lifecycle plan, $350,000

- Fire services platoon chiefs, $334,000

- Sidewalks (restore snow and ice control standards), $275,000

- Snow and ice control (roads), $272,100

- Riel Recreation Park maintenance/operations, $205,800

- 150th celebrations, $150,000

What didn't make it:
- Transit local route improvements (off peak), $330,000; incentives for affordable housing, $150,000; tree bylaw implementation, $104,000; CRB, $100,000

2011
Proposed tax increase: 8.60 per cent
Municipal spending: $118.4 million
New operating requests: $9.6 million

Operating highlights

- Extra office space, $852,900

- Fire station No. 3 staff, $720,000

- Fire staffing (for high rise development), $480,000

- Fire services platoon chiefs, $414,000

- Servus Place lifecyle plan, $400,000

- RCMP staffing, $349,000

- Sidewalks snow and ice, $304,300

- Snow and ice control (roads), $272,100

- Riel Recreation Park maintenance/operations, $205,800

- 150th celebrations, $200,000

- Staff transition fund (succession planning), $200,000

- Tree maintenance, $172,400

- Consultant to review east transit routes (including Servus Place), $175,000

What didn't make it
- Transit local route improvements (off peak), $500,000; incentives for affordable housing, $150,000; CRB, $100,000; tree bylaw implementation, $87,100

Servus Place expensive?

The municipal trend of building mega recreation centres continues.

Have a look at what's proposed in Grande Prairie — a 200,000 sq. ft. monster of an aquatics and wellness centre.

It's going to be attached to existing twin arenas and a gymnastics facility, but will include: leisure and competitive pools (you can surf too), fitness area, squash and racquetball courts, running track, soccer pitch, etc.

The construction contract hasn't been awarded yet, but it could reach $104 million, according to the Grande Prairie Daily Herald-Tribute.

Whether you agree with the 2004 plebiscite or not, it really hits home about inflation in Alberta since St. Albert's guaranteed maximum price of $42.8 million with PCL.

From the Herald-Tribune:
Cutting costs - City still looking at ways to reduce multiplex tender before Nov. 11 deadline

Interestingly, the aquatics and wellness centre was designed by the same firm as Servus Place, Barr Ryder Architects and Interior Designers.

Here's another tidbit that should be familiar to St. Albert residents — the GP multiplex was originally touted as a regional project between the City of Grande Prairie and County of Grande Prairie. When talks fell through, the city decided to go it alone.

If you want a closer look, here's a link to floor plan maps, visuals and the business plan. (They're forecasting 76 per cent cost recovery in 2011, the first year of operations, which would increase to 84 per cent and 99 per cent the following two years. Servus Place is shooting for 77 per cent in 2009).

Taxes v2.0

St. Albert homeowners are looking at almost a 28 per cent property tax hike compounded over three years, after the 2009-11 budget was released Friday. That's up slightly from figures released earlier this month.

The budget calls for proposed tax increases of 8.97, 8.41, and 8.60 for 2009, 2010 and 2011, respectively.

The owner of a $400,000 home can expect to pay $209 more next year, and a combined $660 over all three.

The hike translates into an extra $130 a year for the owner of a $250,000 condominium. That's $411 over three years.

Utilities could go up 9.5 per cent a year for all three budget years.

Business pay more

Business owners face the largest tax increases: 10.47, 10.66 and 9.59 per cent for 2009-11.

The difference? For the 2009-11 budget, non-residential operations are being taxed at a higher rate than in past years. It's part of a "tax burden ratio" that's being worked into financial policies. The idea would use an 84/16 split, meaning 84 per cent of all tax revenues would come from homeowners, while 16 per cent would come from non-residential. (Those were the numbers used over the summer, which may or may not have changed).

According to the budget overview, the proprosed increases actually could have been worse for business had the city not held back on the Servus Place levy. Businesses will gradually pay more for the capital levy in the coming years.

Single-year budget?

That on-again, off-again debate about multi-year budgeting appears to be headed for a conclusion.

Council on Monday is expected to debate whether they want to review a one-, two- or three-year operating budget. Coun. Roger Lemieux intends to introduce such a motion on Oct. 27.

There's been quite a bit of back and forth on this issue during the last year. Since the spring, admnistration has been operating under direction to prepare the full 2009-11 budget and present it starting Oct. 27. Council had agreed to first review all three years worth of budget requests before deciding whether to approve one, two or three years worth of spending.

If council does have a change of heart and Lemieux's motion passes (and it sounds like the majority is leaning that way), they could ask to hear just the 2009 budget presentations and focus their questions on that year alone.

This would likely mean fewer budget meetings this year, but additional deliberations in 2009 and 2010.

Lemieux's notice of motion only refers to the operating budget. He indicated he's still in favour of a multi-year capital budget.

Read more in Saturday's Gazette.

Power line misses budget

The cost to move a high-voltage power line away from Big Lake will not find its way into the city's 2009-11 budget, or any other spending year for that matter. The line is responsible for numerous bird fatalities due to collisions with overhead wires.

Council on Monday rejected its own environmental advisory committee's (EAC) recommendation to put $450,000 toward relocating the AltaLink transmission line. AltaLink had offered to match (unheard of for environmental reasons), while the province already cut a $300,000 cheque.

The EAC advocated running the line along the east side of Ray Gibbon Drive, one of six options presented to council. The city's own office of environment said that option would not eliminate fatal bird collisions, but would certainly move it from a "high-risk" area and likely reduce fatal strikes.

Out of sight …

Rather than put city dollars toward the move, council instead favoured James Burrows' idea —  ask the province and AltaLink to bury the line underground at a cost of $6.3 million. (A move not without environmental consequences).

Burrows argued it would be a "great gift" to the people of St. Albert if the province came through. Moving the line, he said, would boost eco-tourism opportunities at Lois Hole Centennial Provincial Park.

Indeed it would be quite a gift if the province came up with the millions needed. That would be 10 to 20 times Alberta Tourism, Parks and Recreation's original contribution, depending on whether AltaLink agrees to such a partnership.  The early response from both organizations … has been short on enthusiasm.

Dream on

Coun. Lorie Garritty said council is "dreaming in Technicolor" if it thinks the province and AltaLink will reach that far into their pockets. He may be right.

However, Mayor Nolan Crouse worried about the implications of using reserves to pay for the move.  Replacing the money (something council would be advised, but not obligated to do) would require the equivalent of a 0.75-percentage point tax increase. 

Crouse doesn't view the power line as the city's top environmental priority. If the city is to go to government for environmental funding, it should be for issues like improving the water quality of the Sturgeon River, he said. (Dredging the river is a $2-million expense in 2013, according to the 10-year capital plan).

Sports backlash?

Crouse and Coun. Gareth Jones shared worries about the power line's proposed proximity to the Riel Park sports fields. A map of the EAC's preferred alignment shows it running across the southwest corner of the soccer pitches.

Realistically, relocating a power line near the sports fields would not win many friends among soccer parents, the rugby club, cricket, Kinsmen Club, BMX — and on down the list.

Those are potentially louder voices than the EAC and the three residents who spoke in favour of relocation Monday.

Interpretive centre questions

After years of delays, Monday's decision should trigger a powerful conclusion. Either the province will come through and bury the line, or it's possible they'll cancel their $300,000 cheque.

It's not clear when the city will get an answer. But you can bet the issue will come up again when St. Albert, the province, Ducks Unlimited and the Hole family resume talks about creating an interpretive wetland centre situated in Lois Hole park … in view of a bird-killing power line.