The budgets address challenges related to lost photo radar revenue, across-the-board cost inflation, and significant investments in new infrastructure.
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During its December 9, 2024, Regular Council Meeting, Coaldale Town Council formally approved a 2025-2027 Operating and 2025-2029 Capital Budget.
As per Section 244 of the Municipal Government Act, each year Council must pass a balanced budget. To balance its 2025-2027 Operating Budget, Council needed to find an additional $972,583 in revenue.
The need for this additional revenue stems not only from inflation, but also, from the province’s recent decision to prohibit photo radar speed enforcement on all provincial highways and restrict its use to school zones, playground zones, and construction zones.
Since October 2023, the national inflation rate increased by 2 percent. In Alberta, however, the inflation rate increased by 3 percent, meaning that just as individual Albertans pay 3 per cent more for goods and services today than they did a year ago, so too do their municipal governments. As for the province’s decision to prohibit photo radar speed enforcement on all provincial highways, this resulted in a net loss of approximately $400,000 in operating revenue for the Town.
“Don’t get me wrong – as a Council we understand why the province is prohibiting photo radar enforcement on provincial highways. Photo radar should be used for traffic safety purposes only; not revenue generation”, said Town of Coaldale Mayor, Jack Van Rijn. “That being said, these changes – combined with significant inflationary pressure – meant having to work hard to find areas of savings, as well as some additional revenues, to balance the budget.”
On the residential side of the equation, property taxes will increase by 2.85% – an increase that for the median Coaldale home (valued at $315,000) amounts to $5.27 per month or $63.24 per year.
On the non-residential side of the equation, the mill rate will increase by 3.2% (from 9.69 to 10.0), which maintains Coaldale’s position as a low tax environment for its business community.
“It’s important to recognize that even with a 3.2% increase in the non-residential mill rate, Coaldale remains, by far, the most business-friendly urban municipality in the region”, said Cameron Mills, Deputy CAO and Director of Growth and Investment for the Town of Coaldale. “Coaldale’s commercial mill rate remains 25% lower than neighbouring Taber’s and 50% lower than neighbouring Lethbridge’s, and so what I think that tells you is that our Council remains committed to preserving Coaldale’s competitive advantage, even when faced with tough financial decisions.”
“Fortunately, our Council and Town staff were able to navigate this year’s fiscal challenges in a responsible manner”, said Mayor Van Rijn. “Unlike a lot of municipalities in Alberta, we've managed to preserve or even enhance existing service levels while maintaining competitive tax rates which, once again, has allowed our Council to put forward a capital budget that moves the ball on many of the priorities outlined in our 2021-2025 Strategic Plan.”