TAMRMS#: B06
9.3
REQUEST FOR DECISION
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Budget Adjustment
Presented by: Suzanne Findlay, Manager, Financial Services, Financial & Strategic Services
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RECOMMENDED MOTION(S)
recommendation
1. That $1,270,000 of Assessment Growth Revenue be transferred to the Growth Stabilization Reserve.
2. That the 2025 final Consolidated Municipal and Utility Budget in the amount of $405,831,100 and the Net Tax Requirement of $142,487,500 as shown in the attachment titled “2025 Adjusted Consolidated Municipal & Utility Budget” be approved.
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SUMMARY
The purpose of this report is to bring forward adjustments to the approved 2025 Budget for consideration of approval prior to the finalization of the annual tax levy.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On February 11, 2025 Council approved the following motions:
AR-25-054
That the 2024 Municipal operating surplus, estimated to be $10.8 Million, be allocated as follows:
• $1.85M to the Capital Reserve;
• $1.85M to the Municipal Land and Facilities Reserve;
• $1M to the Water Reserve; and
• ~$6.1M to the Stabilization Reserve.
That the 2025 Utility Budget be adjusted for Council’s approval in conjunction with the annual budget amendment agenda report, which is currently scheduled for April 15, 2025, along with any required bylaw amendments with any rate change to be effective May 1, 2025.
On December 17, 2024, Council passed the following motions:
AR-24-598
That the 2025 Consolidated Municipal and Utility Budget in the amount of $404,834,000 with a Net Tax Requirement of $141,608,500 provided as attachment titled “2025 Approved Consolidated Municipal & Utility Budget” be approved.
That the 2025 10 Year Municipal Growth Capital Plan provided as attachment titled “10 Year Municipal Growth Capital Plan” be approved.
That the 2025 10 Year Utility Growth Capital Plan provided as attachment titled “10 Year Utility Growth Capital Plan” be approved.
That the 2025 Municipal RMR Capital Charter COMS-001 Community Capital Grant Program be increased by $11,000.
BACKGROUND AND DISCUSSION
On December 17, 2024, Council approved a Consolidated Municipal and Utility Budget of $404,834,000 with a net tax requirement of $141,608,500 which resulted in an average property tax increase of $31 per year per $100,000 assessed property value, or 3.6%.
Prior to the presentation of the annual Tax Bylaw for Council’s consideration, Administration presents proposed adjustments to the budgets upon which the Tax Bylaw rates are based. Amendments can arise due to circumstances that have changed subsequent to the preparation/approval of the budget, adjustments to estimates, Council motions with spending implications, or new requirements of an emergent nature.
For 2025, Administration is recommending the following adjustments before the 2025 Tax Bylaw is passed.
Municipal Adjustments
Assessment Growth - increase of $1,270,000
In finalizing the 2024 Assessment Roll, the total weighted assessment growth rate was 2.99%.
Council Policy C-FS-05 directs that assessment growth to be applied as follows:
• 25% to offset the base
• 20% as a contribution to lifecycle reserves
• 55% transferred to the Growth Stabilization Reserve
However, as per Standing Committee of the Whole direction from April 8, 2025, which is anticipated to be confirmed by Council on April 15, 2025, 100% of the additional assessment growth will be committed for the Lakeview Accelerated Program through a transfer to the Growth Stabilization Reserve with no impact on the 2025 budget.
Electricity costs - decrease in expense of $223,900
The decrease in electricity costs is due to delivery rates being lower than initially budgeted.
Electrical Franchise Fee - increase in revenue of $144,900
The increase in Electrical Franchise fees is due to updated estimates in franchise fee revenue provided by Fortis.
Grant in Place of Taxes (GIPOT) - increase in revenue of $40,000
The increase in GIPOT revenue is due to provincial budget changes to restore the GIPOT Grant program to original funding levels.
Edmonton Metropolitan Region Board (EMRB)- decrease in expense of $81,700
The decrease in EMRB cost sharing is due to the dissolution of the EMRB effective March 31, 2025. This $97,700 reduction in costs is offset by an increase of $16,000 per year to cover Collaborative Economic Development Memorandum of Understanding costs.
Senior Planner FTE Position - increase in expense of $89,500
On April 1, 2025, Council approved a senior planner permanent FTE position be funded from the 2025 budget (AR-25-156). As the new position is anticipated to begin in June, the budget reflects seven months of salary.
Additional Flower Planters - increase in expense of $10,000
On April 1, 2025, Council approved a $10,000 ongoing increase to the budget to fund additional planters at Tache roundabout (CM-25-004).
Utility Adjustments
Water SCC Rate Adjustments - decrease of $66,800
The increase to the reserve approved by Council on February 11, 2025 results in less anticipated funding required for Utility capital projects, resulting in a reduction of the Supplemental Capital Contribution rate by $0.35 from $7.50 to $7.15.
Solid Waste - $1,015,900 in recovered revenue
Alberta’s Extended Producer Responsibility (EPR) came into effect on April 1, 2025. As the City of St. Albert has chosen to remain in control of recycling collection by opting-in and receiving financial compensation through a producer responsibility organization (PRO), an estimated $1,015,900 is expected for 2025. This reduces the following Solid Waste Utility Rates:
• Recycling reduction of $5.14 (from $6.54 to $1.40)
• Flat Rate reduction $0.73 (from $10.77 to $10.04)
The new rates will be approved as part of the Utility Bylaw 15/2025 which is presented for Council consideration at the April 15, 2025 Council meeting.
Summary
Administration is not recommending any adjustments to the Capital Budgets.
The above recommendations result in a $879,000 increase to the net tax requirement. The adjusted Consolidated Budget is $405,831,100 and the net tax requirement is $142,487,500, resulting in an average property tax increase of $24 per $100,000 assessed property value, or 3.2%.
Although the budget is increasing, the additional assessment growth is reflective of more properties over which to spread the levy, leading to a decrease in the average municipal tax on a per property basis.
Administration will continue to monitor the revenues and expenditures within the approved budget and communicate any forecast variances through the quarterly reports.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
As these budget amendments are based on a point in time, the inherent risk of exceeding or not exceeding could result in a surplus/deficit position for the City. The Financial Reserves policy is in place to ensure that fluctuations in budge estimates can be managed.
Compliance & Legal:
The final tax requirement must be established at this time to meet our historical and targeted timelines of passing the Tax Rate Bylaw and the issuing of Assessment and Tax notices by May 31st.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
See Compliance and Legal.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Not Applicable
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Financial Planning
Stewardship of development of annual operating and capital budgets for Municipal and Utility operations.
The approved operating and capital budgets shall serve as the financial plan for the City and provide Administration with the direction and resources necessary to accomplish Council’s strategic direction and Council approved service levels in accordance with the Services and Service Levels Inventory.
IMPACTS OF ALTERNATIVES CONSIDERED
If Council does not wish to support the recommendation, the following alternatives could be considered:
Alternative 1. That Council ‘do nothing’. The current approved tax rate would not be reflective of Administration’s recommendations.
Alternative 2. Council can approve alternate amendments to adjust the budget.
Financial:
Administration’s recommendations are based on the most current information. Both alternatives could further increase the inherent risk of exceeding or not exceeding the surplus/deficit position for the City.
Compliance & Legal:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
None at this time.
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Report Date: April 15, 2025
Author(s): Suzanne Findlay
Department: Financial & Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher