On November 27th, Lacombe City Council elected to increase taxes 0.9% after undergoing a process to keep taxes below the Consumer Price Index at 1.4%. On December 9th, after much deliberation, City of Lacombe Council decided on a final tax increase to 1.0% to support recent provincial changes made to the Lacombe Police Commission and the Lacombe and District Family and Community Support Services.

“I would have preferred that we didn’t have so many curveballs sent our way after enduring a rather lengthy budgetary session, but we made the best of it and came up with some reasonable solutions,” explained Grant Creasey, City of Lacombe Mayor.

Creasey was not particularly enthusiastic about the changes that were made to accommodate further cuts made by the provincial government so late in the season.

“I think it would be safe to say that there are not very many organizations that are particularly thrilled with the idea of being forced into changes at this late juncture in the process. Reductions are never easy,” said Creasey.

The three provincial government announcements that impacted the Lacombe Police Service were as follows:

  • Freeze to the deployment of new Automated Traffic Enforcement programs resulting in a revenue loss of $450,000
  • Increase in the provincial portion of fine revenue from 27% to 40% resulting in a revenue loss of approximately $50,000
  • Increased cost for the Forensic Lab Services resulting in an increased cost of $13,500

Given the recent provincial changes, the Lacombe Police Commission was forced to cut back on spending and adjust their budget. After much scrutinization, the Police Commission had a budget shortfall of $131,125 that the City of Lacombe had to swallow.

Not unlike the Police Commission, the Lacombe FCSS was forced to make changes to programming resulting in a loss of $114, 680 in revenue after the cancellation of Parentlink, Healthy Families, and the Early Years Coalition by the Provincial Government

To manage the $131,125 shortfall from the Lacombe Police Commission and $114, 680 from the Lacombe FCSS the City of Lacombe City Councillors made adjustments to their operating budget to accommodate the changes.

The following changes were made to the 2020 operating budget by the City of Lacombe:

  • A $35,000 decrease to the Builder Fund Transfer Reduction in the city’s staff training by $1,000
  • Reduction in the city’s staff wages and benefits
  • An increase in revenue through a 0.1% tax increase

It was tough for the Mayor and Council to make the necessary changes after trying so hard to sustain their 0.9% tax increase at last month’s council. Now at 1.0%, their efforts seem in vain.

“I am just a little frustrated that we spent all this time and we do all this work and the provincial government and their wisdom decide that they are going to change things up. It really throws a wrench into things,” said Councillor Reuben Konnik.

In the end, Konnik was happy that the council only had to raise the taxes by 0.1% and that larger increases weren’t entertained.

Heading forward, Creasey hopes by this time next year the provincial government will be in a more organized state to allow for a smoother process.

“It’s certainly my hope that the provincial government will be in a better position after being in power for a lengthier time period that these types of surprises will not happen after municipal budgetary processes is initiated because it makes it confusing for council and the public and it makes it more work than what it needs to be for our administration,” said Creasey.