Budget and Financial Statements

2021 Operating and Capital Budgets

Edson, Alberta, December 2nd, 2020 – Council has approved the 2021 Capital and Operating Budgets with some minor changes to the Capital budget. The Budget uses the equivalent of a 2.5% tax increase from the original 2020 budget. In 2020 an emergency budget was put in place due to the COVID-19 pandemic to allow for a reduction in taxes for 2020 and set aside a fund to help in recovery. Some of that recovery money has been used to reduce the overall tax impact for 2021.

The 2.5% equivalent taxation increase will be funded 1.9% from taxation, and 0.6% from storm water management fees, which are being moved from taxation to the utility bills. The actual taxes levied on an individual property will be dependant on their property assessment.

This increase is necessary to start returning to pre-COVID 19 service levels, and to catch up with inflation following the tax reduction in 2020. The increase was limited to a 2.5% equivalent by reducing administrative costs and utilizing funds set aside from the 2020 emergency budget.

Highlights of the proposed changes are listed below:

Utilities

Storm Water Management Fee – A proposal was accepted to move those costs from general taxation to utility bills as it is a utility of the Town of Edson. This is meant to be a cost neutral change, meaning any charge added to the utility bill would be moved out of general taxation.

Utility Fees - The Town strives to operate on a cost recovery model for utilities. Under this model, as operational costs change it becomes necessary to adjust the rate to ensure costs are recovered. The presented 2021 Budget proposes rate increases and the following table shows what this would look like:

Utility

2020 Rate

Operational Increase

Asset Management Plan Increase

2021 Rate

Average Annual Increase (based on 20m3/month)

Water

1.11

0.07

0.03

1.21

24.00

Sewer

1.26

0.05

0.07

1.38

28.80

Waste Collection

17.50

0.35

 

17.85

4.20

Recycling Residential

9.00

1.00

 

10.00

12.00

Recycling Non-Residential

15.00

2.00

 

17.00

24.00

Storm Water Management (New)

N/A

 

 

2.00

24.00

Capital

Several capital projects were discussed for the 2021 budget including: