FOR IMMEDIATE RELEASE
Thursday, November 9, 2023Lloydminster, AB/SK – City Council received a 2024 draft budget that aims to balance urgent capital and operational needs while positioning the community for long-term financial viability.
Throughout the 2024 draft budget presentation to the Governance and Priorities Committee on Wednesday, November 8, 2024, Administration aligned its plans with Council’s 2022-2025 strategic plan, setting short and long-term priorities that will shape the community for years to come. In mapping fiscal priorities for 2024, Administration considered inflationary factors on supply chain, delivery and the overall cost of goods and utilities, provincial funding, carbon tax and interest rates. Resident input collected through a two-month community engagement campaign was also considered by Council and Administration in identifying budget priorities.
“The cost of providing services and programs has risen sharply over the past year. Municipalities across Western Canada continue to face inflationary pressures, and Lloydminster is not exempt from these challenges,” says Dion Pollard, City Manager.
The 2024 budget continues to invest in capital projects, such as the Cenovus Energy Hub, Lloydminster’s new event facility featuring two full-sized ice surfaces suitable for sporting and entertainment events, an outdoor community rink, and other outdoor beautification methods. The capital budget also supports other infrastructure needs, emergency services equipment and environmental services to support Lloydminster’s estimated three per cent growth in 2024.
“While growth in both population and urban footprint is positive for the long-term sustainability of the community, it poses urgent need for investment, which was another key consideration in compiling the 2024 draft budget,” adds Pollard.
Operationally, the proposed budget will continue to enhance fiscal strength, build economic resilience and strengthen community safety. All of which will support an increase in quality of life and the community’s long-term growth.
The draft 2024 budget considers additional key challenges, including the end of Alberta’s Municipal Sustainability Initiative funding and the lack of a long-term funding formula for its replacement, the Local Government Fiscal Framework. Additionally, ongoing RCMP contract negotiations, service level reviews and cost analysis, public transportation planning, and a housing needs assessment and strategy have all been considered in the proposed budget. The aim is to create a budget that supports delivering quality services and programming to residents while advancing Council’s strategic priorities.
Upon conclusion of the presentation, the draft budget highlighted $102.9M (including transfers) in operating costs and $64.5M in capital expenditures, which correlates to a proposed 5% municipal tax levy increase and approximate 3% growth, or an approximate $8/month increase in property taxes on a $350,000 residential property. A proposed 1% tax levy to support an infrastructure gap was also highlighted in the draft presentation. If approved, this increase would initiate a contribution to addressing the infrastructure gap. Aging infrastructure, chronic funding shortages and continued population growth have presented municipalities in Canada with what is known as an infrastructure gap. An infrastructure gap is defined as the difference between infrastructure investment needs and the funding available to pay for infrastructure.
“As Lloydminster continues to experience the impact of costs, Council thanks Administration for its diligent work in creating a budget that aims to address the urgent needs of our community while positioning it for long-term financial sustainability. We appreciate that the proposed budget does not include any imprudent expenses and that every item proposed is vital for the safety, growth and development of our community,” says Mayor Gerald Aalbers.
“While we appreciate a five per cent increase will continue to provide the level of services residents have come to expect, Council has requested Administration to explore all avenues and make every effort to mitigate the tax impact.”
Proposed 2024 Budget Impacts
The draft budget includes a municipal tax levy increase of 5%, assumes a 3% growth in assessment, and a user fee increase of 5%, allowing the City of Lloydminster to keep pace with inflationary costs, maintain current service levels, and contribute 1% and 1.5% respectively to the operating and capital reserves annually.
The draft presentation also highlights a 1% infrastructure gap levy. If approved, this increase will aid in replacing aging infrastructure over a period of at least 10 years.
Residential Impact
Based on a 5% municipal tax levy increase and approximate 3% growth. Assumes no changes in assessed market value or education taxes.
|
Value of $250,000 |
Value of $350,000 |
Value of $500,000 |
2023 |
$1,815 Municipal $100 Seamless $662 Education $2,577 Taxes |
$2,542 Municipal $141 Seamless $926 Education $3,608 Taxes |
$3,631 Municipal $200 Seamless $1,323 Education $5,154 Taxes |
2024 |
$1,906 Municipal $76 Seamless $662 Education $2,561 taxes |
$2,669 municipal $106 Seamless $926 Education $3,701 Taxes |
$3,812 Municipal $152 Seamless $1,323 Education $5,287 Taxes |
Monthly Difference |
+$6/mo |
+$8/mo |
+$11/mo |
Infrastructure Contribution (additional) |
+$1/mo |
+$2/mo |
+$3/mo |
Non-Residential Impact
Based on a 5% municipal tax levy increase and approximately 3% growth. Assumes no changes in assessed market value or education taxes.
|
Value of $500,000 |
Value of $1,000,000 |
Value of $1,500,000 |
2023 |
$6,535 Municipal $200 Seamless $1,940 Education $8,675 Taxes |
$13,069 Municipal $421 Seamless $3,879 Education $17,369 Taxes |
$19,603 Municipal $601 Seamless $5,819 Education $26,023 Taxes |
2024 |
$6,861 Municipal $152 Seamless $1,940 Education $8,953 Taxes |
$13,723 Municipal $319 Seamless $3,879 Education $17,920 Taxes |
$20,583 Municipal $455 Seamless $5,819 Education $26,587 Taxes |
Monthly Difference |
+$23/mo |
+$46/mo |
+$70/mo |
Infrastructure Contribution (additional) |
+$6/mo |
+$11/mo |
+$17/mo |
Residential Utility
Based on a 5% utility increase. Assumes an overall increase – further work is necessary to breakdown between water, sewer and waste management.
|
Low Consumption (10m3) |
Medium Consumption (25m3) |
High Consumption (60m3) |
2023 |
$101/mth |
$161/mth |
$312/mth |
2024 |
$107/mth |
$169/mth |
$328/mth |
Monthly Difference |
+$6/mth |
+$8/mth |
+$16/mth |
Non-Residential Utility
Based on a 5% utility increase. Assumes an overall increase – further work is necessary to breakdown between water, sewer and waste management.
|
Low Consumption (15m3) ¾” meter |
Medium Consumption (80m3) 1” meter |
High Consumption (1,300m3) 2” meter |
2023 |
$108/mth |
$411/mth |
$5,778/mth |
2024 |
$113/mth |
$432/mth |
$6,067/mth |
Monthly Difference |
+$5/mth |
+$21/mth |
+$289/mth |
Next Steps
Administration expects to present a second draft of the 2024 budget during the Council meeting on Monday, November 20, 2023. If the budget is not approved during the meeting, it will be brought back at the Council meeting on Monday, December 11, 2023.
In accordance with sections 183 through 190 of the Lloydminster Charter, Council must adopt an operating and capital budget before permitting expenditures for the related fiscal year.
Learn More
Residents were invited to provide input to help shape the 2024 budget through a public survey from June 13 through August 24, 2023. More than 290 people took the time to complete the survey, and 302 comments were reviewed for future consideration. Additionally, more than 450 people attended five in-person budget engagement events. Learn more about these engagement findings at YourVoiceLloyd.ca/2024budget.
Review the 2024 operating and capital budget documents at Lloydminster.ca/budget and watch a recording of the November 8, 2023, presentation at Lloydminster.ca/livestream.