At the Regular Council Meeting on April 22, 2024, Council passed the amendments to the 2024 Property Tax-Supported Operating and Capital Budgets. The suggested amendments to the previously approved budgets are a result of cost overruns in several capital projects.
The changes represent a 2.6% increase. Impacts due to this increase will be funded by the Town through the contingency reserve.
The Town’s anticipated 4% tax increase is a response to the high interest rate and inflationary environment and is comparable to other municipalities in Alberta. Council had initially passed the 2024 Property Tax-Supported Operating Budget of approximately $22.3 million, including requisitions at the January 22, 2024, Regular Council Meeting.
The Operating Budget is prepared with a four-year outlook and is reviewed and approved annually. This financial planning provides a strong foundation and the ability for the organization to be flexible with future projects and initiatives.
One quarter, or $5.475 million, of the Town’s 2024 Operating Budget, is represented by provincial requisitions. The Town is responsible for collecting and remitting provincial requisitions, including the Education Requisition (13%), Seniors’ Lodge Requisition (3%) and the RCMP Policing Contract (9%).
“Although inflationary costs have been on somewhat of a downward trend, they remain elevated from those of months ago when the Capital Budget was passed,” says Councillor Tony Lacher. “These same elevated costs flow through to the annual Operating Budget; however, Council is pleased to hold steady on the 4% tax increase proposed at that time.”
Based on the property assessments in the Town of Drumheller for 2023, an average residential property is assessed at $234,000. With the 4% increase in the tax rate, an average homeowner can anticipate seeing an additional $81.66 for the year, or $0.22 per day. The budgeting process is focused on achieving balance, investing in infrastructure and increasing the efficiencies in service delivery while exploring opportunities to reduce costs.