The proposed 2022 Operating budget of $15,704,744 was sent back to the drawing board for further revision after Drumheller council was unsatisfied with the changes presented at the regular Monday, March 21 council meeting.
A draft budget, which included a proposed 3.2 per cent increase on the residential tax rate, was originally brought forward for council feedback and recommendations at the regular March 7 council meeting.
“People are still trying to survive, and I’m not comfortable-personally-with a 3.2 per cent tax increase,” Mayor Heather Colberg shared.
The town received a more accurate estimate of the 2022 RCMP policing contract amount after the March 7 meeting, and this amount was adjusted accordingly from $1,459,560 to $1,517,632.
Director of Corporate Services Mauricio Reyes explained investment revenue was also increased by $60,000 to $475,000 due to rising interest rates, and amortization also received a marginal increase of $1,928 to $1,609,960.
The proposed budget showed some increases over the 2021 budget, particularly to user fees and rentals and wages and benefits, due to easing COVID-19 restrictions. Mr. Reyes explained, as the town’s recreation facilities were unable to operate at a normal capacity, salaries and benefits in 2021 came in at some $6.99 million, but would have been around $7.3 million had these facilities operated normally.
In the 2022 proposed budget, these wages are some $7.49 million. This is due to increased staffing as restrictions ease, allowing recreation facilities to operate as normal, along with changes to existing or new positions, and increased cost of living allowances.
Recreation user fees and rentals are also expected to increase by some 18 per cent.
Despite previous feedback at the March 7 meeting to reduce the proposed municipal tax rate increase of 3.2 per cent, the proposed budget did not show an adjustment in this amount.
Council provided additional feedback and recommendations on areas where the budget could be amended to bring down the proposed residential tax rate increase.
One recommendation was for Mr. Reyes to investigate the efficiency of two newly created permanent positions-the Social Equity and Youth Services coordinators.
These were temporary positions in 2021, supported by grant funding which has now ended, and are being proposed to be made permanent full-time positions in 2022.
While poverty reduction is one of the strategic priorities laid out by council, they questioned whether it was prudent to re-evaluate the value of the position in favour of reducing budgetary pressures.
Council also questioned the need for a Youth Services coordinator as a youth centre has been set up at the old Central School on 3 Street West.
Mayor Heather Colberg noted the RCMP policing contract is a cost the municipality will have to absorb, but there could be cost savings in other areas.
Council unanimously opposed approval of the budget as presented and directed Mr. Reyes to further investigate ways to reduce the proposed tax rate increase below 3.2 per cent.
