COLD LAKE – City of Cold Lake council has given its 2021 interim budget the green light.
The capital and operating budgets were passed with a 0.14 per cent tax increase and a reduction in recycling rates.
Operating expenditures increased about $400,000 from 2020 to $44.7-million, after transferring about $9.5-million to the capital budget, which has a total of $41-million in projects and capital purchases.
City administration used conservative growth and revenue projections in their forecasting, which means the tax increase required to balance the budget could be lower than originally forecasted
According to Mayor Craig Copeland, council is hoping to ‘hold the line’ when it comes to municipal taxes.
“This has been a challenging time for communities around the globe and within Alberta, many communities have been hit particularly hard by the slowdown in the oil industry on top of the protracted economic downturn and the ongoing COVID-19 pandemic,” he said in a press release. “Cold Lake is no different and now, more than ever, we must balance immediate needs with future visions. Our council is proud to have arrived at an exciting budget. This budget lays the foundation for future growth and economic development. It also maintains valuable services important to residents and makes significant headway on our infrastructure deficit.”
When council sits down in May to pass the final version of the budget, Copeland said there might be enough growth in the city to prevent a tax increase.
“If we have a growth of any of our new buildings or homes, that might give us enough money that we can just hold the line on property tax, but we’ll see.”
The recycling utility rate dropped by $2.75 to $6.50 per month for residential properties and $1 for multi-family properties. The reduction reflects the city passing savings onto residents, which were realized through a new service delivery model for recycling in the community.
The upcoming year will also see the implementation of a five per cent increase in recreation fees. The small jump was originally budgeted for implementation in 2020 but was postponed due to the COVID-19 pandemic.
Also included in the 2021 budget was the anticipated funds from the Intermunicipal Collaboration Framework (ICF) the city will have with the MD of Bonnyville, although an agreement hasn’t officially been reached yet.
“We haven’t arrived at the final ICF document yet, but we have a great working relationship with the MD of Bonnyville, who has been committed to the ICF process and funding programs and services that are valued by all in our region,” Copeland noted. “I thank Reeve Greg Sawchuk, his council, and their administration for their work.”
City administration also included an estimate for what they would receive for ID 349, even though firm numbers weren’t announced until after they passed the budget.
“When we went to the budget, we wanted to think positive and that’s how we moved forward on the budget process,” Copeland explained.
The roughly $41-million in the capital budget will see roughly $2-million in fleet and equipment infrastructure done, environmental and utility infrastructure improvements worth about $8.7-million completed, approximately $9.1-million in roadway improvements to be added to over the $2.2-million already allocated from the Municipal Stimulus Program, $18.4-million in facilities infrastructure, $110,000 in information services and technology, along with $20,000 for airport infrastructure, and $2.5-million for recreation infrastructure.
“The 2021 budget takes on a wide variety of projects, from trails, facilities and roads to underground infrastructure and a lakefront project that will help shape the future of our community for years to come,” Copeland said. “Most importantly, the projects in this capital budget should allow local firms a chance to secure a significant amount of work. Many of these projects should provide a boost to the local economy.”
Copeland joked that council wanted to call the capital budget the "Cold Lake Stimulus Package."
“We gave directions to Kevin (Nagoya), our CAO, that we really wanted to maximize every dollar that we could find. We wanted to put people to work, so Kevin worked with all of his general managers before the budget came to the city and looked at all of the expenses on the operations side and really shave things down and tried to maximize every dollar that we could to put into the capital (budget). We’re pretty excited that we’re going to have over $40-million of capital work (and) that a lot is going to be (open) for local companies in the area to bid on and get some work,” he explained.
Copeland added, “For me, being around a long time, I think it’s the most diverse capital budget that we’ve ever done.”
Some projects in the capital budget include upgrades and modernization of the north arena, Lakeshore Drive enhancements and linear parkway, funding for an additional phase of the Kinosoo Beach master plan, design development of a community pool and aquatics centre, phase one of a new public works operations centre, topping up funding for a new RCMP detachment building, expansion to the skateboard park, a public washroom for the downtown business area, additional floating docks for Kinosoo Beach and the Cold Lake Marina, among others.
