Beiseker's Finances & the AUMA

I am most concerned about our villages financial problems. 

The property tax hike this year was, in my opinion, too high. Now we are being told that our village has operated at a deficit for many years! 

During my term as mayor of Beiseker this village never ran a deficit! It is true that we chose not to fully address our Tangible Capital Assets and their depreciation. Which means that if the new airport runway surface suddenly crumbled, every piece of village equipment suddenly broke down, and every water pipe and sewer pipe in the ground sprung a leak all on the same day, the village would be in strife! 

The chances of that happening are slim and nil! Several years ago, the provincial government decided that it would be good idea for municipalities to create a slush fund to pay for replacements of our equipment and infrastructure, and account for the depreciation of its assets.  It might've been a good idea for larger municipalities - but for small ones like ours, it was totally ridiculous. If you take into account the depreciation and replacement of our tangible capital assets, the village would be in a deficit!  However, in my term as mayor the village always paid its bills and we actually ran a very small surplus!  

I think Village Council is getting some bad advice. I think they need to reread the entire Municipal Government Act and the auditor's reports from the last 10 years. Although I was one of five councilors, I was still hurt when I read that the former council was insinuated as being irresponsible in Beiseker's finances.  We did no such thing!

The AUMA Convention:

Every fall the Alberta Urban Municipalities Association holds a convention. They been held in Calgary, Edmonton, and recently again in Red Deer. Our village council has decided not to go to the convention this fall.  I think this is a very shortsighted decision, and needs to be readdressed! 

The convention gives municipalities the chance to address government officials in person directly. There is even a session which permits municipal leaders to directly address the many newly elected cabinet ministers involved in their operation! 

With the recent change of government, Beiseker needs to be seen and heard at this convention! Maybe just one councilor and the CAO should go, but someone needs to represent our village there!

Passing the Buck(s)

I didn't get the memo! But members of our new provincial government did.  The memo read:

When faced by Alberta municipalities and school boards asking for financial assistance for projects or  programs, respond in the following manner:  " Under the existing law (or model, or guideline, etc.) municipalities (or school boards) are permitted (or can)  to fund enhanced resources (or facility, or program etc.) through their own budgeting process."

Statements like this, with the appropriate words filled in, are being given out to municipalities asking for new health facilities, better provincial roads, better policing, or any other project which could use some provincial funding.

The problem; municipalities don't have those extra funds!   We've got to start working together again to create these projects which, in the long run, will benefit many if not most Albertans!

To "Pho Chu Yeung"

I am answering "Pho Chu Yeung," who criticized the Village of Beiseker quite severely through the Village's Facebook page.

I was hurt by the accusations made by this (supposed) Beiseker resident, whom I have yet to meet.

• "[Beiseker] has no full time fire department."  I think we've addressed this first concern in my blog post a few days ago.   One anonymous commenter and I have discussed that a little further on that blog post, too - please scroll down to get those comments.
• "[Beiseker] has no ambulance service."  Beiseker is in the same situation here as every other Alberta municipality.  The ambulance services right across Alberta have been taken over by the province!  The service which we joined (The Kneehill Ambulance Service in Three Hills) was disbanded and is now part of the huge mega system run by Alberta Health Services.  We have little or no say on how this new entity operates.  Please refer this concern to the provincial government.
• "We haven't fixed a "hole" in the middle of town for a year."  Over the past few days I have driven every street and laneway in Beiseker, and I have yet to find the hole to which you refer.  Please give us an address of the nearest property so we may check out your concern.
• "The Town should be audited."  Actually, the Village of Beiseker is audited every spring by an independent auditor.  Those findings are published in a report presented to council usually in April.  The provincial Ministry of Municipal Affairs is also informed of the results of that audit.  More information about the annual audit is available to all rate payers at the Village Office.

I hope this clarifies a few of the issues brought forward by Mr. or Ms. "Yeung."   Remember, every council meeting is open to the public.  They are held every second and fourth Mondays of each month in Council Chambers.  The meetings begin at 7:15 p.m.  If you wish to address council at one of those meetings, you must register as a delegation a few business days before the meeting.

Village Councilors' Expense Claims

At last Monday's Council Meeting, I made another proposal with a view of saving money on the village budget. 

This time, I proposed that we reduce the amount slated for councilors expense claims.  As you may know, prior to the 2013 municipal election a committee was created - totally separate from council - to review and recommend changes to the expense claim amounts.  After that election, the newly elected council accepted and passed the new schedule designed by that committee.

It significantly raised councilors' fees.  In fact, that budget line in our books more than doubled in 2014, over what it was in 2013! 

I am suggesting that we take another look at those new figures for expense claims and possibly reduce them during these "belt tightening times."  They could be raised back to their current amounts in the future, when councilors feel the Village coffers could better could afford it.  What do you think?

Belt Tightening!

The reporter from the Rocky View Weekly phoned me, yesterday.  She had attended our council meeting last Monday.  She noted that in my report to council, I proposed some cutbacks in the budgets of three village departments; The Volunteer Fire Department, Public Works Department, and the Recycling Department.  She wondered why.

I explained that Beiseker faced some tough economic roads in 2014 and we need to get strong again!  Snow removal was a biggy last year.  The winter of 2013-2014 dumped huge amounts of snow on the village.  Our snow removal bill skyrocketed!  We also had a large amount in overdue municipal taxes not paid. 

These factors, plus a couple of large expenses put us in a "hand to mouth" financial situation.  That is not a situation that council is comfortable with!

Our Chief Administrative Officer has made enormous strides in collecting unpaid property taxes.  We've found that folks find in easier to pay their property taxes in monthly installments, instead of one big bill in the summertime.  Many have arranged to do this and our unpaid tax file has shrunk down to a very small amount!  But I still believe we must trim our expenses, too.

Premier Prentice has been telling us that Alberta's dependence on oil revenue puts the province's finances in jeopardy when oil prices drop to less than half of what they were a few months ago.  He has discussed different ways the province will manage their finances under the current circumstances. I think it is the responsibility of municipalities to also sharpen their pencils and trim their budgets accordingly.  I don't believe a huge property tax hike is the way to go!

Staff from each of the three departments I've named will determine if a cutback is possible without compromising the services the village provides.  They will report back to council. Our budgeting process will go on for the next few weeks.  By the way;  In future council meetings, I will be asking other village departments and service areas to consider cutbacks, too.   Stay tuned!

What do you think?  Get in touch with a village councilor and tell them what you think should be done.

Village Financial Audit

I noted an article in the most recent Rocky View Weekly reporting on our village's financial audit for 2012.  I want to commend Beiseker's village council and the village's staff for managing our village so well this last year. 

The village of  Beiseker has a cash flow problem caused by two things;

•  We still have a huge amount of back taxes owing!   Unpaid taxes have a huge impact on a small village like ours!  The tens of thousands of dollars owing could improve many things in the village, if it were available to us. It is very frustrating to have unpaved streets, broken sidewalks, and other issues within the village - and not having the funds available to address them!
•  The second problem actually comes from the provincial government.  As I've mentioned before, we collect the education portion of the property tax on their behalf.   They in turn withdraw this money from our bank account.  And therein lies the problem.   The province  withdraws the total amount, regardless of how much is still owing to the village by rate payers or has not been collected, yet.  We have no imput - They just take it!

Overall I was very pleased with the results of our 2012 audit.  If we can stay on this road of fiscal responsibility, our village will continue to do well - in spite of two problems I've mentioned.