November 20, 2023, for immediate release
Airdrie AB – On November 20, City Council approved the 2024 operating budget of $207,184,963 and the 2024 Capital Budget of $131,618,910. To balance these budgets, Council approved a municipal tax revenue increase of $5,239,437 consisting of $2,893,309 for municipal services and $2,346,128 for capital investments.
“This was a hard budget year, says Mayor Brown. “We know there are people struggling in our community and we respect that. At the same time, we also know Airdrie needs more facilities, infrastructure & services. We believe we struck a balance with an increase that will be palatable and at the same time move our community forward,” added Brown.
Budget Highlights:
The average household in Airdrie will see an increase of $146.91 per year or $12.24 per month. This increase will go towards:
Municipal Services ($6.76 per month)
Capital Investment ($5.48 per month)
“Airdrie is not immune to inflation and the rising costs being experienced around the world,” says Horacio Galanti, Chief Administrative Officer. “While the cost of goods and services continue to increase, and we continue to grow at a rapid pace, we are proud to run a lean organization and to be fiscally responsible and prudent, securing the long-term sustainability of the City,” adds Galanti.
The City undertook engagement on the budget throughout 2023 and the results showed the majority of people were comfortable with an increase in taxes in order to have the facilities and infrastructure they want to see in our community – more specifically – most people were looking for another recreation centre.
Capital Budget Highlights
A full listing of the capital projects will be available in January 2024.
“One of the ways we are fiscally responsible is through the Tax Stabilization Fund,” says Shannon Schindeler, Chief Financial Officer. “By adding a small increase each year leading up to the opening of our new facilities, we are able to spread the impact over time to avoid a larger increase when we need to start paying to operate these new facilities,” adds Schindeler.
Did you know?
• The main sources of revenue for the Operating Budget are:
o user fees and charges
o franchise fees
o tax revenue
o cost sharing/joint use agreements
• The main sources of revenue for the Capital Budget are:
o reserves
o developer levies
o debt (borrowed funds)
o grants
o cost sharing/joint use agreements
• Enough revenue must be raised to cover expenses, debt servicing and transfers to reserves. The City is not allowed to run a deficit and needs a balanced budget each year. Municipal Government is the only level of government required to do so.
• 67% of property taxes go to the municipality, 32% to the province for education taxes and 1% to Rocky View Foundation. The tax revenue increase and effect on the average household addressed above refer to the municipal portion of the total property tax bill.
• City Administration prepares a three-year operating budget and a ten-year capital budget driven by Council’s focus areas and corporate priorities.
• Typical operational expenses for the City are services such as street clearing, recreation, water services, streetlights, trails, pathways, playgrounds, parks, public transit, arts and culture, police, fire and municipal enforcement. Although growth revenue helps manage the cost of services, services for the added population costs more than the revenue coming in from those taxes. Increasing revenue sources, such as taxes and user fees, will help the City maintain current service levels, advance focus areas and sustain critical services to the future.
The full budget breakdown will be available in January 2024. For more information on the budgeting process, visit www.airdrie.ca/budget.
Media Contact:
Jill Iverson
403.948.8800 ext 8475
jill.iverson@airdrie.ca