Lethbridge City Council will begin reviewing the operating budget October 18, 2022. (City Council photo from October 11, 2022 - LNN)

By Jerran Fisher

City of Lethbridge 2023-2026 budget discussions begin

Oct 17, 2022 | 2:57 PM

Lethbridge, AB – Lethbridge Council members will begin reviewing the operating budget for the next four years on Tuesday, October 18, 2022.

The city’s operating budget involves the day-to-day costs of delivering municipal services and programs such as police, emergency services, road maintenance and parks.

In 2019, there was a 1.82 per cent municipal tax increase, and zero per cent increase to the municipal portion of residential taxes between 2020-2022.

The draft 2023-2026 operating budget is forecasting an average annual municipal property tax base increase of 3.77 per cent for each of the next four years, which is equivalent to a $94.20 per year per single family residence, based on an average market value of $285,800.

The increased tax proposal is due to external pressures, according to a City of Lethbridge news release, which states, “Since 2020, inflation has surpassed City tax increases and has created challenges for the operating budget. Keeping a zero per cent increase is not feasible in order to maintain service levels while responding to inflation rates and the increasing costs of doing business.” The release also states, “The forecasted tax increase is consistent with anticipated increases from other Alberta municipalities.”

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City officials say some external pressures Lethbridge is facing include a reduction in Traffic Safety Act revenues, which amounted to about $1.2 million dollars per year in lost revenue, and a loss of around 50% of grants for government properties.

In the news release, Mayor Blaine Hyggen stated, “When we begin deliberations for the next four-year operating budget, City Council will face a number of challenges and difficult decisions related to rising costs and maintaining existing services while still trying to be fiscally responsible to our residents.”

During a news briefing on Monday, October 17, 2022, Hyggen said, “We’ve been through a pandemic, it has been a struggle, so in order to keep running this city, there’s going to have to be an increase.”

Revenue for the operating budget is funded by the municipal portion of residents’ property taxes and other municipal levies, as well as from sales of goods and services including utility service charges and user fees for services like recreation and cultural facilities.

Hyggen said having no tax increases over the past few years has reduced funding for services.

“There has been a reduction in funding for these different providers because of that.” Hyggen added, “We had some staffing reductions, which was a concern in getting some initiatives done throughout our community.”

Park beautification has been among the city initiatives put on hold.

Operating budget deliberations will take place from November 14-18, 2022 at Economic Standing Policy Committee meetings. The recommendations from deliberations will be forwarded to City Council for potential approval at the regular meeting on November 29, 2022.

City Council must approve an operating budget by December 31 in order for the city to pass a property tax bylaw.

Learn more about municipal finances on the City of Lethbridge website.