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(Alison Sandstrom/paNOW Staff)
Budget 2021

Council approves 2021 budget with no tax increase

Feb 2, 2021 | 7:30 AM

Prince Albert city council has passed the 2021 budget, with a last minute amendment cutting the tax increase down to zero per cent.

At the end of three days of budget deliberations, council had tentatively agreed on a 1.1 per cent mill rate tax increase for the coming year, down from the 6.6 per cent hike proposed by city administration.

On Monday night, when the city’s politicians met again to give the budget final approval, Mayor Greg Dionne introduced an amendment to chop a further $354,000 off the spending plan to bring the increase to zero.

“Talking to residents, they made it quite clear that they have a strain,” he told the meeting, referencing the economic impacts of COVID-19 being felt by many across the community. “They appreciate what we did, but they wanted us to see if we could go further.”

Dionne suggested removing $60,000 from the police budget saying he had spoken with the police chief who was on board with the change. Another $50,000 was saved by directing city administration to delay hiring for a few vacant positions. Meanwhile travel expenses for council and various city departments were reduced by $9,000, and $235,000 was taken from the 2020 budget surplus.

“We know that we’re going to have a large surplus carrying over from the extra MEEP [Municipal Economic Enhancement Plan] money and COVID money,” Dionne said.

Most councillors liked the idea, with many agreeing they’d also heard from constituents who couldn’t bear a tax increase right now.

“In a COVID year, this is the responsible thing for council to do,” Coun. Dennis Ogrodnick said.

The 2021 budget passed 8-1, with Coun. Terra Lennox-Zepp as the lone dissenting vote.

She voiced concerns that by reducing the amount being put into reserve funds, particularly one used to replace city vehicles and equipment, council was failing to prepare effectively for the future.

“I firmly believe that small increases over time are more respectful to our citizens, rather than putting things that we need to spend on off into the future, when we may later need to ask for a larger increase,” she told the meeting.

Council also passed the water utility and sanitation fund budgets on Monday night. Residents can expect to see a $0.50 increase to the garbage/recycling pickup charge on their monthly utility bill, while water rates for in-city users remain unchanged.

alison.sandstrom@jpbg.ca

On Twitter: @alisandstrom