By Colin Smith
Morinville Town Council has chosen to stay the course by adopting a budget that continues efforts to stabilize Morinville’s financial situation while maintaining and improving services for residents.
In doing so, they have decided against a minimal tax hike or no increase at all.
The 2025-2027 Operating Budget and 2025-2034 Capital Budget were finalized at a special council meeting on Tuesday, Dec. 3.
Despite the postponement of final deliberations at the Nov. 26 regular meeting because of the absence of Councillor Scott Richardson, the budget passed was only slightly different than the draft presented there.
An amendment by Councillor Jen Anheliger saw three studies related to the Infrastructure Services Building dropped from the operating budget for a saving of $35,000, while its Phase 2 environmental study will go ahead at a cost of $15,000.
The amended budget was passed in a six-to-one vote, with Councillor Ray White opposing it.
The projected property tax increase for next year is about 5.8%.
In opening remarks at the special meeting, Acting CAO Michelle Hay called on council to “stay the course” by adopting a budget in line with its five-year plan to bring the town’s finances in order, while maintaining services, rather than rejecting the rise in taxes that requires.
It was a line of reasoning most councillors had come to agree with by the end of a budget development process that began in September.
The motion to approve the 2025-2027 Operating Budget was made by Councillor Jen Anheliger.
“This budget keeps us on track,” Anheliger said. “In fact, it increases some of the services we provide to the residents.”
Councillor Rebecca Balanko said she was convinced to support the budget after being informed that 80 per cent of the work in a proposed needs assessment for FCSS and other social supports had been accomplished.
“We know the need is there,” she said.
Stating that he could not support the budget, Councillor Ray White said he felt taxpayers needed a break. He noted that property taxes had increased 11% over the past three years.
Councillor Stephen Dafoe emphasized that the tax hike anticipated in the budget is based on the projected assessment values, which may vary.
The actual 2025 tax rate won’t be set until the spring and could be changed depending on budget surplus.
“We don’t know what our assessment is going to be by the end of the year and we don’t know what our surplus is going to be,” he said. “I think the time to look at it [reducing the tax rate] is in the spring.”
The importance of projects in the budget for ensuring Morinville is meeting provincial indicators for infrastructure was stressed by Councillor Scott Richardson.
“The current budget is what we need,” he said.
Councillor Maurice St. Denis pointed out that provincial cuts have contributed to the town’s economic woes, at a time when Alberta has a $5.6 billion surplus.
He said the budget reflects tremendous fiscal restraint, adding there are a number of deferred renewal projects that will need to be a focus in the future.
“A lot has been asked of Morinville residents over the past three years,” said Mayor Simon Boersma, but empathy must be balanced by the need to deal with the town’s financial difficulties. “As a council and a town I believe we can continue on this path,” Boersma concluded.
The 2025-2034 Capital Budget passed unanimously. Capital expenditures next year are $3,938,450 for recurring renewal programs and $720,000 for growth and value-added projects.
The 2025 tax on an average residential property, value $357,391, would be $3,047.54, or $253.96 per month, based on the 5.82% tax increase of the final budget draft.
Homeowners will be paying $20.16 a month more in tax, or $241.96 annually. The assessed value of the average Morinville home will rise by an estimated $7,148 in 2025 over this year.
For a commercial property assessed at $868,427, the annual tax would be $11,754.60, $979.55 per month.
The tax on a $1,467,820 industrial property would be $19,867.68, $1,655.64.
Morinville’s Consolidated Budget for 2025 shows total revenue of $29,960,649, including $14,712, 038 in net taxation and $8,040,774 in water, wastewater and solid waste fees.
Federal capital grants provided $637,964 in revenue.
Total expenses are $28,215, 857, including $13,148, 773 for salaries, wages and benefits and training.
The net before other expenditures is $1,744,792. Other expenditures include debt principal, $1,096, 928, and transfers to reserves, $1,337,864.
5.82% increase in our base tax. What is the total tax increase when water, sewer, garbage, etc rate increases are included?
The town continues to attempt to get its financial house in order on the back of the resident. The province continues in its attempt to gets its financial house in order on the back of municipality. In the end everything lands on the back of the resident. We are the end of the line.
This is not sustainable.