Airdrie City Councillors have been busy deliberating what next year’s budget will look like.

Due to prevailing economic conditions combined with decreased revenues due to on-going COVID-19 related issues, the city is looking at around a $3.5 million dollar gap in the 2021 budget.

The biggest reason for the gap is a decline in revenue. For many year’s Airdrie has been one of Alberta’s fastest-growing cities with dozens of new acres of residential land developed each year. However, due to COVID and the economy, that hasn’t been the case this year.

“When you develop 130 acres annually and you’re down to 30 this year and probably only 50 next year, that’s a significant blow to our revenue stream,” said Mayor Peter Brown.

How to make up that difference? One of the tools Council can use is tax revenue. Increasing municipal taxes can bring in a significant amount of revenue for the city, but with the hardship facing many families this year, Mayor Peter Brown says that wasn’t a tool they wanted to use.

“There will be a few fee increases for stuff like criminal record checks, licensing for dogs. There will be a zero per cent tax increase. Water and utilities will go up on average around $54 dollars per year, but that’s directly due to increases we’re paying to the city of Calgary for our water supply so that wasn’t negotiable,” explained Brown.

In order to make up for the shortfall, the city will use some funding being provided by other levels of government.

“We’re fortunate, along with other municipalities across the country, to receive some money for operating, which doesn’t happen very often. It’s just over $7 million dollars,” said the Mayor. “We can apply that to any losses we incurred as far as our operating budget as it relates to COVID. So having to shut down Genesis Place, for example, cleaning of all the facilities anything related to COVID we can apply that money towards.”

Looking ahead to the next few years there are several major infrastructure projects on the books. These include building a new Library, a second recreation facility and another Firehall in the city’s northeast industrial area.

These are multi-million dollar projects that are important to the city, but considering the current state of affairs in the province and across the country, Mayor Brown adds Council may need to review its priorities.

“Is it nice to have, or is it a must-have? At the end of the day, everything is on the block right now,” he said. We have to consider all options moving forward. No decisions have been made, we’re still moving forward with all of those plans [at this point].”

The budget will be presented once again for discussion and a decision at the December 7th meeting of City Council.

To see all the options that have been proposed and are being discussed, click HERE.

 

Send your news tips, story ideas, pictures, and videos to news@discoverairdrie.com