Council passes 2023 budgets, forecasts 3.3% tax increase

Cold Lake City Council passed its 2023 Capital and Operating Budgets yesterday, funding a one-year extension to the commercial security program and a shift to 24-hour peace officer presence, while also maintaining existing programs and services in the face of rising costs.  

The budgets were passed with a total of just under $72 million in expenditures.

The 2023 Operating Budget was passed at $54.8 million, inclusive of a transfer to the capital budget of $6.4 million.

The Capital Budget includes just over $23.3 million in funding. A forecasted average 3.3-per-cent increase in property taxes is expected to balance the budget. Property taxes are levied proportionate to the assessment of property in the community. Some municipal property taxes may increase and some may decrease at a different rate, depending on a property’s assessment increase or decrease relative to other properties.  

“There is a lot of economic uncertainty at the moment and inflation has been a challenge that the municipality is not exempt from,” Mayor Craig Copeland said.

“Every year we are faced with balancing different priorities, needs and wants. This year, we sought to hold the line on the vast majority of our programs, while making a commitment to public safety and security, and working to finish the capital projects that we have started.”  

The budget also reflects previously approved amendments to the electrical franchise fee framework, which is expected to cost the average household in the community about $2 a month. The City will also be implementing a new stormwater utility charge in 2023, as well as an invoice fee of $1 per month for paper utility bills (subject to some exemptions).

The City of  Cold Lake’s business, services and recreation fees will also rise by approximately two per cent in an attempt to keep up with rising costs.  

“This fee increase will not keep pace with the increase in costs that the municipality has  seen, but we need to try to maintain a certain level of cost recovery or we will face larger  increases in the future,” Copeland said.  

The Capital Budget will see an additional $9 million in funding for the Public Works Operation Centre, which is expected to break ground in 2023. The entire facility is estimated to cost roughly $35 million. The 2023 Capital Budget will bring the total approved funding for the  project to about $27.5 million. 

The budget has also funded an expansion of kayak storage at the marina, maintenance and refurbishment of several city facilities, including council chambers, the Reid Field House, the third and final phase of the marina boardwalk, roof fixes at the Public Works Shop and the North Fire Hall, as well as top-up funding needed to meet the budget for a renovation of the Cenovus Wellness Centre.  

The 2023 Capital Budget includes spending across a variety of initiatives, equipment  replacement programs and departments. A breakdown of the spending is as follows:  

• Fleet and Equipment Infrastructure: $1,287,000 
• Environmental and Utility Infrastructure: $1,245,800 
• Roadway Infrastructure Improvements: $8,180,200 
• Facilities Infrastructure: $11,835,000 
• IST Infrastructure: $60,000 
• Recreation Infrastructure: $700,000 

A significant portion of the 2023 Capital Budget is debt financed for projects that have generational impacts, such as the new Public Works Operations Centre. 

A full breakdown of projects in the 2023 Capital Budget can be found on the City’s website at www.coldlake.com/budgets. Further details about major capital projects and their progress  can be found at www.coldalke.com/projects.