Photo by Curtis Galbraith.

By Curtis Galbraith

City Hall

Tax increase of 1.16% proposed for 2022 as city budget talks wrap up

Dec 3, 2021 | 7:44 PM

City Hall budget talks wrapped up Friday and a 2022 budget that includes a 1.16 per cent tax increase is going to the December 13 council meeting for final discussion.

The proposed increase at the start of talks Thursday morning was 1.55 per cent.

Mayor Jackie Clayton says council was hesitant to approve an increase because it did not want to add additional costs onto taxpayers.

“However, with it, we are increasing services, providing opportunities for capital investments in our community and it’s a few dollars of an increase,” explained Clayton.

“Considering that since 2018, we’ve seen approximately an eight or nine per cent rate of inflation, this council over that time since 2018 has seen a negative tax impact.”

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Clayton says important additions include adding $500,000 to the budget to support the Grande Prairie Regional Hospital Foundation’s efforts to buy new equipment. This will be paid out of taxes.

There is also $200,000 more for Economic Recovery Program grants and $75,000 for a Richmond Industrial Park revitalization plan. Those will both be paid for from reserve funds.

She adds the 1.16 per cent proposed increase is still well below the inflation rate.

“This council made decisions that puts us at under the rate of inflation. So, that is something to be very proud of in the fact that we found efficiencies, we still created capital opportunity, and it is still a minimal increase at 1.16 per cent, considering what the rate of inflation looks like.”

Council approved, by a 5-4 vote, cutting $500,000 out the salary budget.

Councillor John Lehners made the motion.

He says the idea is to find efficiencies, not to see people lose their jobs.

“I think there are opportunities in our organization to find efficiencies and that naturally leads to, ultimately, lower staffing requirements,” he explained.

“We’re not looking to get rid of anybody but we’re looking to find some efficiencies and that works itself out over time.”

Lehners says he made the motion because he has faith in administration to make improvements in the organization.

The budget includes $11 million for road projects, another $5.75 million for improvements on 100 Street between 116 and 128 Avenues, money to repair the bridge on 99 Avenue, trails along 100 Avenue and 108 Street near the Staples corner, to replace the roof on the Centre for Creative Arts, and to upgrade roof trusses at the Bowes Event Centre.

Council also voted to defer some projects until 2023 budget talks.

That includes replacing the replica fire hall at the Grande Prairie Museum, shade shelters for the outdoor pool, a robotic scrubber for the Community Knowledge campus, pop-up kiosks for the Eastlink Centre, and upgrades to the south concession stand at the downtown arena. This saved $470,000.