Worried the municipality has the appearance of “spending like drunken sailors,” Lac La Biche County Mayor Paul Reutov defended some of the cost-cutting measures — including staff pay — in in the 2023 municipal budget.
The financial document that sets the blueprint for spending and revenues for the next year of operations was approved by councillors at a special meeting on December 22. The decision, which saw only one councillor — Kevin Pare — opposed, comes after six special council meetings and months of discussions, debates, arguments and presentations. The approved budget projects revenues from taxes and grant funding of $80.66 million. The tax revenues are based on a projected 2.64 per cent tax increase.
The projected revenues are offset by approximately $64 million in anticipated expenditures. The 2023 approved budget also proposes $42 million in new capital spending, including payments towards the now-$32 million Main Street utility and streetscape upgrades. The decision to go ahead with the Main Street funding, passed by a narrow 5-4 margin.
'Devil's advocate' says mayor
While the budget does reflect many of those challenging discussions, it does not include a three per cent cost of living expense for municipal staff. The removal of any cost of living expense is estimated to save $705,000 from the year’s expenditures. Decisions during the budget planning process also saw requests from several municipal departments for additional staffing or equipment being denied or modified.
During discussions at the final budget meeting on Wednesday, Reutov argued against any cost of living increase and additional staffing expenses, saying residents were already going to be shouldering some financial burdens.
"I'm just going to be the Devil's advocate here - we are raising taxes on residents here and then we are just giving all that money to administration. We have to be efficient, we have to be cautious of what we spend. We just approved 30-something million dollars on Main Street ... We are spending money like drunken sailors, it's unsustainable," he said.
Over the next year, the municipality will be paying down debenture loans on several large-scale projects. Along with $16 million already approved in 2022 for the Main Street Revitalization Project, an additional $15 million was approved to be borrowed in the 2023 budget. The upgrade to McArthur Park will see borrowing of approximately $6 million. Payments are also continuing on a $12 million debenture for the municipality's portion of the proposed $27 million aquatic centre. The McArthur Park project and the aquatic centre are both scheduled to be completed by late 2025. The Main Street project, although approved for funding, has yet to receive project go-ahead by council.
Reutov — who said he supports the Main Street project, but would have liked more time to discuss the new funding models before it was approved — may have questioned the overall spending at the budget meeting, but in a In a prepared statement released by the municipality after the budget's approval, he said the large projects are helping the community set sail for future investment.
“From the big investments we are making in the Aquatics Centre, McArthur Park, and Main Street Lac La Biche, to our much larger ambition to create a development corridor throughout Lac La Biche and Plamondon, we are showing that our community is ready for investment," he says in part of the press release. "Our Economic Development Advisory Committee is actively seeking and engaging with industry to attract businesses and investment to our municipality. Council and I look forward to seeing our new direction for the community realized.”
Other highlights of the approved 2023 budget include $2 million for water and sewer line replacement in the hamlet of Lac La Biche near the Lac La Biche Legion, and an additional $800,000 for similar upgrades along 105 Street. Council approved $620,000 for capital upgrades at the Lac La Biche Golf Club, and $1.2 million for railway crossing upgrades along the Caslan-Plamondon Connector Road and on 105 Ave. in Lac La Biche. Almost a million dollars will be spent to repair the Maccagno Boat Launch and the Missawawi Bridge.
Tax hike only projected
While the Budget 2023 document does include a projected tax hike averaging 2.64 per cent for residents and businesses, that number is subject to change, says Lac La Biche County spokesperson Jihad Moghrabi.
"Proposed tax revenues were raised to balance the budget and maintain the County's high service levels," he noted, "but Council will decide on municipal tax rates in spring 2023."
More projects, more discussions
Many area projects have been on council's priority list for capital upgrades over recent years. Some didn't make it into the 2023 budget. How those priorities are ranked and their needs in the community was a large part of council discussions over the budget planning process. Upgrades and new builds like Plamondon's Campsite Road, a new water truck fill in Owl River and roadwork and utility infrastructure projects across the municipality are normally added to rolling, long-term planning lists approved at the same time as the annual budget. But with council agreeing that more discussion was needed on long-term plans, the 2024-2028 Financial Plan and the 2024-2033 Capital Plan were deferred to a later meeting early in 2023. A council workshop to discuss those plans will take place in January.
