Council hastily approves budget

Budget time has come to an abrupt halt in Lloydminster after the newly-elected council passed the proposed budget during their first meeting together.

The proposed tax increase is 4.5 per cent with a utility fee increase of 5 per cent. 

The city is reporting operating expenditures of $110,049,011 with an operating revenue of $60,646,910. The rest will come from municipal taxes (excluding amortization of $22,671,679).

The 2025 Capital budget has total capital revenues of $52,954,173 to support total costs of $52,954,173.

In terms of expenses, Lloydminster will be spending $43.8 million on salaries alone, roughly 40 per cent of total expenses the city will incur.  The other major expense the city incurs every year is the contracted services, projected to cost $27.3 million. 

They will also be paying $4 million in bank charges this upcoming year. A notable decrease in the budget is a 25 per cent decrease in snow removal. Administration has clarified if more money is needed for snow removal it can be taken from reserves. 

“We’re trying to keep it as on average of  what we typically use, and then if we need more we go to the resiliency reserve that gets approved through council and city manager. That’s how we’ve been dealing with it the last several years,” said Don Stang, executive manager, operations, City of Lloydminster.

An infrastructure gap is something Lloydminster will have to deal with in the future. 

“There was a suggestion of a mill rate for next year that is excessive, but it definitely highlights the fact there is an infrastructure gap and we need more funding in order to get the projects off the ground that we kicked the can on this budget,” said Coun. Jason Whiting. 

The proposed tax increase for 2026 is 9.2 per cent, pending council approval and any changes next year.

An infrastructure gap, as defined by the city, is the difference between infrastructure investment needs and the funding available to pay for the infrastructure. 

Total infrastructure needs will be $80 million next year rising to nearly $200 million needed in 2033 with a 10-year gap of almost $800 million. 

“The concern I have is the infrastructure gap because from roads, which executive manager (Don) Stang talked about we could do less spray patching and less patching of cracks, but that will come back to haunt us,” said Lloydminster Mayor Gerald Aalbers.

Aalbers says delaying projects and services like the ones mentioned would only get added to the list of capital projects later down the line.

Despite the incoming infrastructure gap, administration is working to provide better long-term forecasting for upcoming budgets.

“Council annually will be able to review the budget and then look through what administration is proposing. We are working towards providing better long-term operating plans as well as better long-term capital plans. This is just a step in the right direction in terms of providing a longer-term forecast in some of our information that we’ve provided for council,” said Adele Wakaruk, executive manager, corporate services.

To save money in budgets, municipalities will typically defer projects to next year, choosing what projects to tackle based on importance. 

“As mentioned, the Vic Juba (theatre) currently is missing from the 10-year capital plan, there’s no current considerations for public transit beyond phase two of the business plan development and implementation strategy. The other one is the Archie Miller (arena), the future of that will be determined early next year with advice from council,” said Tracy Simpson, executive manager, community development services.

“I think in general, within the budget, there’s a tremendous amount of roadwork. Look at 52 St. from the operations centre to 75th., that project alone was $8.5 million for the roadway plus the services that go in. There’s other arterial roads that could be upgraded now or in the future. It’s just a priority listing,” said Dion Pollard, Lloydminster city manager. “We’ve put together what we feel is a good list of capital projects, we’re certainly moving stuff down the road. If we had the dollars we’d do as much as we can today.” 

According to administration, it’s often roadway infrastructure projects that get delayed.

Of note in the updated budget, councillors saw on Nov. 25, three capital projects were added, including two road projects, 75 Ave. road improvements, 40 Ave. and 44 St. ditch and roadway widening, fieldhouses floor regeneration.

“Where we’ve landed is a positive step in a sense that going more than this would have had a pretty significant impact. said Coun. Michael Diachuk. 

“Around the table and in our discussions, we’ve heard from businesses and people that are hanging on by a thread. This is trying to have the city hang on by a thread in terms of maintaining the service levels the community has asked us to provide,” said Diachuk. “There’s a lot of work to be done in the year after this as well.”

During question-and-answer, Coun. David Lopez asked for more specifics on the costs of the museum and the library.

“Everyone’s tightening up their purse strings, we’re seeing inflationary costs, I’m looking at the tenants in my building and they’re going ‘I don’t know how much more I can withstand before I have to close my doors and go back to my home-based business because I can’t be in bricks and mortar.’ So when everyone’s looking at it, I feel we have to do the same thing,” said Lopez. “I think if we can tighten up, if it costs a few services like that, maybe less exhibits, it might be something we can look at and sort of tighten up our purse strings as a council and as a city.”

A variety of items were requested for clarification by council. Aalbers asked about third-party asks from the city, which administration clarified they could get a list of all the groups the city supports. Lopez asked for some more specifics regarding the spending at the museum and library for public clarification, which administration said they could provide a better break-down. Lopez also asked for further details on the Geographic Information Systems (GIS).

Coun. Justin Vance requested a condition report on the 18 fleet units and 15 golf carts. 

“Aside from the Cenovus Energy Hub, the highest expense is the $3.4 million to replace 18 fleet units and 15 golf carts. I was wondering if we have a condition report on our current fleet units and golf carts,” he said.

Administration did clarify it was supposed to be included as part of the capital information and could be provided. 

Aalbers asked administration what it would take to reduce the tax increase to zero per cent. Administration took the time to talk about what important services the city would have to cut in order to reach no tax increase. 

“If there was to be an ask of reducing budget we would have to start cutting some services,” said Stang, explaining crack filling, spray patching, concrete rehabilitation could be among the services cut if needed. Stang explained they’ve already cut some of these programs. 

Operational hours for facilities was another example given by Simpson, who said they could also re-examine user fees. 

Lopez says it’s time for the city to dig deep and find some cost savings.

“As far as the services and things like that, I know we have the surveys and 60 per cent of the people want to keep the services where they are or better. At the end of the day, we really need to, we’d all love to live in a 2,000 sq. ft. mansion with a four-car garage with a Ferrari in it as well, but if we can’t afford it we can’t afford it. If we’re personally and businesses are tightening their purse strings, we as a city have to dig deeper. I believe administration has to go back, look and dig deeper and see if we can find those little cost savings,” said Lopez. He says if people are cutting back it’s important for the city to do the same. 

One thing notably missing from the early discussion was ways for the city to generate additional revenue.

“Who can we bring and are we maximizing our efforts in economic development,” said Coun. Michele Charles Gustafson. “Do we have the streamlined process to bring larger industry?”

Pollard clarified they do have a grants coordinator and a small economic development team. He explained prior to a motion being made by Coun. Whiting, the original deficit of $6.6 million has been lowered to the 4.5 per cent tax increase that was presented to council. 

“We certainly can, the level of service is what’s going to be impacted next when you look back,” said Pollard. 

He says it’s possible to find more cost-cutting in the budget but it would take longer than two weeks to find them. 

“We have gone through a very extensive process. I can tell you our teams, in terms of what they want to do and continue the level of service they have, are not real excited about the cuts we’ve made,” said Pollard.

Despite the clarification and supporting documents requested by council, the motion to approve the budget passed.  An exact vote of those opposed or against has and will not be made public as the city’s bylaw indicates they do not record it.

“A councillor may request that a vote be recorded prior to council taking the vote,” reads the bylaw. 

While the sitting council may have approved the budget for 2025, it doesn’t mean no changes can be made. If council chooses, changes can still be made through a council motion. The tax increase requires a bylaw to be passed before going into effect.

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