A Moment with a Councillor: Budget: Things to consider

As we consider the 2022 budget and the 10-year capital budget, something that sticks in my mind is how we are faced with some incredible challenges this year and over the next decade as a community.

The rising cost of protective services was enough to create a headache for residents as that change alone could have resulted in 6 per cent tax increase. Our administration has made some difficult decisions to pull back on as much capital as possible. However, to a certain extent, this is still “kicking the can down the road” when we consider the enormous infrastructure investments we will need to make over the following years.

Combine that with the Province of Alberta continuing to decrease the municipal funding we receive. We cannot operate as a province does. We must present a self-sustaining and balanced budget. We cannot fund deficits with debt similar to how higher levels of government. We also have very few tools for raising revenue, unlike the province.

To ensure our long-term sustainability, a property tax and utility revenue increase are necessary. Some people’s response to this would be to simply cut the budget – but I would ask them which services should we stop performing, and generally, their response is to cut wages in administration.

From my perspective, cutting administrative costs will result in reduced services or further cutting capital, which will worsen our long-term capital problem if we fund the increased costs from reserves, making our long-term capital problem worse.

As I noted in the GPC meeting on Monday, November 22, the amount of capital that needs to be replaced within the next 10 years in the city amounts to approximately the total of all net assets on the balance sheet from the entire history of Lloydminster. 

At the end of the day, in my sixth year as a city councillor, I have met many individuals from municipalities across the province. Throughout my discussions with them, I know that we need to maintain and enhance services where possible to remain competitive. To provide quality of life is community development, and community development is economic development because people want to live where there are things to do and places to enjoy.

The provinces know this as well as we do, so as it’s often said, “there is only one taxpayer,” and when municipal grants from the provinces are reduced, they know full well that it will result in a tax increase. The province chooses who will be the villain.

If it is not clear at this point, I am far from being happy about the realities we are faced with as a city and increases on the residents are never fun. However, I look forward to the economic prospects as our region is poised for growth over the next few years.

As we bounce back from the effects of the pandemic and the economy on the upswing, I believe that by maintaining services Lloydminster will continue to provide the quality of life that will attract new business, investment and prosperity to the region.

Councillor Jonathan Torresan
City of Lloydminster