At their most recent council meeting, the City of Lacombe has approved the 2021 Operating Budget, which includes a tax increase of 0.8%.

“Council is pleased to have approved the 2021 Operating Budget, which keeps our community’s tax rate below inflation and in line with our goals as Council,” Mayor Grant Creasey said. “We thank City Administration for working to keep costs as low as possible for citizens during a year that was economically challenging.”

Council approved the Operating Budget after Administration initially presented a draft on October 13, 2020, which included the Three Year Financial Plan.

The Three Year Plan meets federal and provincial requirements for multi-year financial planning but does not authorize operating costs.

Due to the COVID-19 pandemic and its effect on City facilities, City Administration estimates a $200,000 decline in user fees. The City also is anticipating a decline in new building permits due to slow economic conditions.

 

Grants for local organizations

They will remian mostly at their 2020 levels; however, the Mary C. Moore Public Library requested $10,000 less than the previous year.

Funding for the Echo Lacombe Association was eliminated at their request, which will save the City another $6,000.

 

Reserve Funds

The City of Lacombe will continue to maintain healthy transfers to reserves to fund capital projects in the 10-Year Capital Plan adequately.

The majority of transfers remain at 2019 levels, and tax-funded reserve transfers will increase by $32,000.

 

Debt servicing costs

These costs are slightly lower in 2021, although the City intends to borrow additional funds for the construction of a new City Public Works facility. 

 

Water budget

  • Includes a 3% increase in user fees; rates going from $2.49 per cubic meter in 2020 to $2.56 per cubic meter in 2021.
  • Flat utility rate will increase from $27.01 per month to $27.82 per month on all active accounts.

 

Wastewater Budget 

  • Includes a 3% increase in user fees
  • Wastewater rate will increase from $2.66 per cubic meter to $2.75 per cubic meter in 2021. The decline in revenue is mainly due to lower fees from commercial solid waste, and the reduction in expenses is a change in the requisition from the Solid Waste Commission for 2021.