Council approves 2024 Swift Current budget with 3.24 per cent property tax increase
Swift Current residents are facing a property tax increase of 3.24 per cent and an additional one per cent increase in the water and wastewater utility rate in 2024. These increases are a result of the 2024 municipal budget approved by council members during a special council meeting, Jan. 16.
Mayor Al Bridal said during his budget presentation that the goal with this budget is to bring as much value as possible to taxpayers while also looking to the future to identify challenges.
“I am very proud of the accomplishments of this council towards that goal of good stewardship and I believe the 2024 budget is a good example of doing what is right by the citizens who have entrusted us with their tax dollars,” he mentioned.
He noted that council members have shared a common belief in reducing debt during their term. The City will have paid down $16 million in debt for general operations and utilities by the end of 2024 and no new debt was a key goal of this year’s budget. There will be $600,000 in new debt for grant dependent projects, but this will only be taken if those grants are actually awarded to the City.
There was no property tax increase in the current council’s first budget presented in 2021. There was a 2.15 per cent increase in the 2022 budget and a property tax increase of 3.99 per cent in 2023.
“We went to work to cut City expenses right from the start,” he said. “Then as the effects of the pandemic lockdown began to create financial impact, causing inflationary pressures against all sides, we requested conservative increases in the last two budget cycles, while still cutting away expenses whenever possible. This year we will leverage every resource we have to present a fair, affordable plan once again.”
He added that the 2024 budget is a result of a thorough review by City council and administration to determine the key priorities for the year.
“Affordability pressures were the driving force behind the decisions we made together,” he said. “We focused on capital replacement and capital maintenance to ensure the City’s facilities, equipment, and infrastructure remain in a good state for repair without overburdening the taxpayer we serve. To effectively budget capital expenses to improve or maintain our assets along with our commitment to avoid new debt, we need to do it with funds that we already have available or available to us.”
The 2024 budget of $84,783,436 consists of $73,073,186 for operating and utility expenses and $11,710,250 for capital expenditures.when compared to the previous year’s budget, the operating and utility expenses will be $1.9 million higher and capital expenditures will be $1.2 million higher.
The 2024 budget had to account for several pressures on operating costs, including policing costs, software subscriptions, payroll costs due to annual step increases and union contracts, carbon tax charges, higher utility costs, increased maintenance costs in the Public Works Department, fuel costs and insurance premiums.
At the same time, the budget benefits from higher provincial revenue sharing and an increase in facility revenue, including the record revenue for the Chinook golf course in 2023.
The water and wastewater utility has an annual rate increase of two per cent, but an additional one per cent is included in the 2024 budget due to the increased cost of service delivery and to ensure the utility can fund its own capital expenses for maintenance and replacement.
The property tax increase of 3.24 per cent on an average home in Swift Current with an assessed value of $282,000 will mean an additional payment of $61 on the property tax bill in 2024.
“This is just a little over $5 a month and it’s the price of one or two cups of coffee, if you’re to go out for coffee,” Bridal said. “At this time, when every citizen is feeling affordability pressures, evaluating their own expenses, their debts and their future, we believe the right thing to do is to manage your tax dollars the most efficient way we can. We believe this 2024 budget reflects that duty.”
Councillors expressed support for the budget presented during the special council meeting. Councillor Tuntland-wiebe said this will be one of the lowest municipal property tax increases in the province. Councillor Pat Friesen noted that the City of Toronto is considering a property tax increase of over 10 per cent.
“Budget pressures are unbelievable for municipalities throughout Canada, just given all the different operating expenses are higher and infrastructure deficits and so on,” she said. “So I think Swift Current should be very proud. I know nobody likes an increase of any kind, but hopefully this one is manageable and we will have the support of our citizens in it.”
Councillor John Wall indicated his support for the budget, but he expressed concern over the impact of the property tax increase on ratepayers on a fixed income. Councillor Ryan Switzer felt the property tax increase was unavoidable.
“Obviously, you don’t want to see an increase, but in times of high prices and inflation, I think we’ve done the best we can with what we have here,” he said. “Everything in the world is getting more expensive. It’s a small increase without compromising the services that makes Swift Current a great community.”
Councillor Ryan Plewis emphasized how much discussion took place about the details of this budget, which involved council members and administration. He felt the property tax increase represents a good outcome during a period of high inflation.
“If a budget is able to maintain increases less than inflation, that actually means that we’re doing as much or more with less than we were last year,” he said. “I think that’s something important to put in the proper perspective. While increases do affect disproportionately those on fixed incomes and those with low incomes, unfortunately we have a responsibility to provide services to the City of Swift Current and the residents and businesses of the city. And I’m happy to say that there is no decrease in service this year.”
A breakdown of the 2024 operating budget indicates that 29 cents of each dollar is applied to police and fire protection services, 20 cents is allocated to recreation and culture, 19 cents to City services, 13 cents to fiscal services, 12 cents to transportation and seven cents to parks, trails and green space.
Capital projects in the 2024 budget include $1.3 million to replace a 2002 pumper truck for the Fire Department. An amount of $316,000 is allocated for Chinook Parkway projects and maintenance, including $160,000 to extend the pathway into the northeast area of the city.
The capital budget includes $795,700 for capital maintenance and replacement projects at the different Community Services facilities. There is an allocation of $630,900 for capital replacement and maintenance projects at cultural facilities. This includes $500,000 to replace the roof of the R.C. Dahl building, where the art gallery and library is located.
The budget includes just over $1 million for various water and wastewater capital replacement and maintenance projects. There is a total allocation of $665,000 for storm sewer and drainage rehabilitation and replacement projects, including drainage improvements on Herbert Street East in the vicinity of the library to avoid flooding in that area during high rainfall events.
The capital budget allocates a total of $4.2 million for transportation operations, including paved street rehabilitation, asphalt preventative maintenance and downtown sidewalk replacement. However, an allocation of $2 million for service road rehabilitation will depend on grant funding. Traffic lights will be installed on the south side at the Pioneer Co-op intersection (2nd Avenue SE and Gladstone Street East) due to a successful provincial grant allocation of $100,000.
This was the current council’s final budget before the next municipal election, but Bridal felt it was not part of their consideration when decisions were made about the 2024 budget and the property tax increase.
“There’ll be some people that aren’t happy about it, that’s for sure, but we have to understand that we weren’t elected just to get re-elected,” he said after the budget announcement. “We still have to do what’s right for the citizens of Swift Current and we have to do what’s right for a future. If I have this increase of 3.24 per cent this year and someone doesn’t vote for me because of that, I can’t do anything about that, because I feel it’s in the City’s best interest and the citizens best interest to make sure we don’t lose any of the services we already have.”