TAMRMS#: B06
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Utility Budget Amendment
Notice given by: Councillor Hughes
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BUDGET POSTPONED MOTION:
recommendation
That the 2022 Utility budget be amended such that the average household would experience a 3.1% increase in rates.
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Administration’s Understanding of the Intent of the Motion:
That the utility rate model be adjusted so that the average household (16 M3 water consumption, 240L garbage cart) will experience a 3.1% increase in rates in 2022 versus the 4.5% currently included in the proposed budget.
Operational or Organizational Impacts if Motion is Approved:
None
Financial Implications of Motions:
Rate payers will experience a lower rate in 2022 however, all else being equal, the reduction will be re-captured in 2023.
Stakeholder Consultations:
None
Background:
The Utility Fiscal Policy and supporting rate model ensure that St. Albert Utility rates are set to ensure only cost recovery, including the future maintenance requirements of the supporting capital assets. In development of the 2022 rates, the model indicated the requirement to increase rates by 4.5% in order to achieve this goal. In recognition that the 2022 proposed increase is somewhat higher than the past several years, this motion serves to defer a portion of this increase to 2023 to smooth the impact to ratepayers. For example, this would mean ratepayers would pay $4.11 at 3.1%, opposed to $5.97 at 4.5%.
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Report Date: December 2, 2021
Author: Diane McMordie
Department: Financial Services & Information Technology
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble