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.

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.

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.

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).

St. Albert taxes, services and Servus

An interesting bar graph jumps off the page of a city budget backgrounder. The graphic breaks down how much of the tax increase is needed for various city functions.

Here's the breakdown:

Protective services (fire, ambulance, police, bylaw): 2.31%

Corporate services (HR, finance, assessment, taxation, legal, communications, IT) : 1.95%

Land use/developments: 1.75%

Roads: 1.67%

Transit: 1.35%

If you're doing the math those percentage points combined equal 9.03 per cent, which is above the proposed 8.39 per cent increase for 2009.

The same bar graph shows the following:

Culture/recreation/FCSS (Servus Place levy): -0.64% (yes, that's a negative)

Could Servus Place really be responsible for bringing the tax rate down? Technically, yes.

City administration attributes the tax drop in that category to Servus Place's improved deficit situation, which spells good news for this year and beyond.

Don't break out the confetti just yet. It's important to remember St. Albert's budget does not start from scratch every year. Council reviews new spending.

Just six months ago council approved a $2.2-million subsidy for Servus Place that added 3.68 percentage points to the 2008 tax increase. (Council later cut spending elsewhere to bring the total increase down to 5.9 per cent).

So while the Servus Place subsidy could actually decrease next year and reflect well on the 2009 tax increase, there's still a lot of tax dollars supporting the facility.

Progress has been made, but take it with a grain of salt.