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!

Taxation: Municipal Budgeting

Step two in the taxation process is building a budget. 

Each municipality must go over their spending in each and every department during the previous year, then decide how much money that municipality will need to operate for the upcoming year.  The budgeting process begins in the fall of each year.

Most larger municipalities finalize their budgets close to the beginning of the calendar year, but many smaller ones finalize theirs in late spring.  For those who wait until spring, they must create and authorize an "Interim Budget," which is basically just an extension of last year's budget.

Provincial law mandates that municipalities must not operate with a deficit budget - so councils and administration staff  must work hard to "balance the budget" each year before in can be approved.

Smaller communities like ours must run a very tight ship.  We must provide our citizens with everything a larger municipality does, but with far fewer people to "pay the bills!"   Citizens of Beiseker still require streets and sidewalks, street lights, water & sewer services, playgrounds, recreation & cultural facilities, and fire protection, along with a host of other services -- but our tax base is much smaller than a city!

For example, an arena in a city must serve (and be paid for by) at least 20,000 taxpayers.  A small town arena may only serve fewer than 2000 people.  Yet both buildings must be built, maintained, and operated in a similar manner.  Beiseker is very fortunate that our Ag Society has taken on the task of managing our arena, here!

After the budget has been created and approved by the elected council, it's time to set the mill rate.