Council approves 2021 budget

Dec. 9, 2020/For immediate release

AIRDRIE, ALBERTA – Council approved the 2021 operating and capital budgets at the Dec. 7, 2020 Council meeting.

“We know that many families and businesses in our community are experiencing financial difficulties,” said Mayor Peter Brown. “City revenue has been significantly impacted by COVID-19 and I believe this budget balances the need for revenue to provide services to the city with the current economic climate.”

“The onset of the pandemic required an immediate change in focus. With significant projected revenue loss and increased expenditures, the first priority was to manage the effects of the COVID-19 situation,” said Lucy Wiwcharuk, Director Corporate Services. “Dealing with a significant drop in growth revenue was the secondary priority. The 2021 budget includes measures to maintain revenue levels necessary to deliver current city services.”

Council approved an operating budget of $158,981,630 and a capital budget of $17,110,500. Because of the financial hardships that many residents and businesses are facing this year, the 2021 budget includes a zero per cent tax increase. COVID-related revenue loss for 2021 is about $5.55MM and additional COVID expenses are expected to cost the City $574,000. Expense reductions of $3.5MM have been made to offset COVID-related losses. Government operating relief dollars of $1.8MM as well as $1.3MM from the City’s General Operating Reserve have been used to help bridge the budget gap.

The overall effect to the average residential homeowner with an assessed value of $385,000 is projected to be an increase of $76 annually or $6.33 per month in 2021.

Utility fees cover the cost of water, sewer and waste management. Utility rates will be increasing slightly in 2021.

A two per cent increase to the Fortis franchise fee was approved. Franchise fees are similar to rent that utility companies pay for being allowed to access City land and to provide exclusive service within City boundaries. This fee is passed on to residents by service providers.

Tax Stabilization
A one per cent year over year increase ($630,000) will go directly to the tax stabilization fund. These funds will be used to keep tax rate increases stable in future years when operating costs for the new library facility, the City’s fourth fire hall and the new west side recreation centre get added into the operating budget.

Capital Budget and Capital Replacement Reserves
Over the next three years, the City’s capital spending is projected to be $142MM. In 2021, major capital spending will include the downtown core infrastructure rehabilitation, sewer collection system rehabilitation and recurring road rehabilitation. The 2022 and 2023 capital plan has been accepted for information by Council and includes major projects such as the new library, fire hall and progress towards a new recreation facility.
The 2021 budget includes $630,000 that will go directly into the General Capital Reserve. These dollars will help ensure rehabilitation and renewal of city assets can occur in future years.

Budget Process
Each year, City administration prepares a three-year operating budget and a ten-year capital budget driven by Council’s strategic priorities and business plan goals. During annual budget deliberations, the Council Budget Committee reviews the first year of each budget in detail and reviews subsequent years for possible new services, facilities or other pressures on the horizon. The current year of each budget is adopted by Council, with subsequent years accepted for information.
The City uses a variety of methods to educate residents on the budgeting process. Complete budget information and budget presentations are available at www.airdrie.ca/budget.

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Media contact:
Lucy Wiwcharuk
Director, Corporate Services
403.948.8800 ext. 8459