After enjoying three years without any property tax increases, the City of Lethbridge needs to play catch-up.
Members of city council are meeting as the Economic Standing Policy Committee this week to discuss the tabled draft operating budget for 2023-2026 and hear presentations from city departments for funding initiatives.
The city has been using a multi-year budget model since shortly after the turn of the century, starting off with two- and three-year cycles before moving to four-year budgets to coincide with council’s term.
“Over the last number of years with the pandemic, council had to make certain decisions,” said city treasurer Darrell Mathews.
“Some of that was actually reducing the budget to zero per cent tax increases for three years.
“That builds into the pressures of course, because obviously inflation didn’t stop there.”
In order to meet the current financial demands, Mathews said there will need to be an average property tax increase of 3.77 per cent each year over the next four years.
That’s approximately $94 more per year on a home with a tax evaluation of $285,000, which after four years would equate to $376 more annually than they would have paid in 2022.
Mathews added that number doesn’t cover any “extras” to the base budget.
“The 3.77 (per cent) is the base piece of what’s already approved by council resolution,” Mathews explained.
“There was a discussion (Tuesday) about a number of initiatives — so the additional pieces of services — specifically around employees and service levels. So there is a possibility that (percentage) can increase.”
“Don’t expect this to be a cheap budget. It’s not going to be,” added Coun. John Middleton-Hope.
“This is not a spend council. This is a council that is looking for efficiencies and is asking for justification for increases in areas of the budget.”
Presenting new initiatives for budget consideration
The city has two different budgets — the operating budget and the capital improvement program. They are currently approved at different times, but there is work being done to align those processes starting in 2026.
The operating budget includes two areas with different sources of funding, including its general fund and utility fund.
It focuses on ongoing costs for programs such as police, fire, electric, parks operations, public transit, water & sewer, road maintenance, snow removal, libraries, arenas and swimming pools.
On Tuesday and Wednesday, the ESPC is hearing from several city departments on budget initiatives.
In the past, some of these presentations would have been made right before deliberations, but were moved forward this year to allow council more time to absorb and consider the information.
Several departments asking for staffing improvements — from turning a term-position into a full-time equivalent position, to adding new employees altogether.
“We are left with the responsibilities of making decisions about where do we allocate funds? Do we need more people? Do we need more equipment? Do we need more services?” John Middleton-Hope asked.
The “What We Heard Report” was also presented Tuesday to give a snapshot of the public’s opinions.
Gathering tools for the community survey include a random phone survey of 400 Lethbridge residents, and an open community online survey that garnered 1,400 responses.
It found while the public was satisfied with the city’s 311 call service, people wanted more investment toward improving emergency services. The top concerns the community cited were social issues and transportation.