Cochrane town council moved to approve the 2023 to 2025 budget earlier this week, despite two council members voting against the process for the operating budget.
The 4-2 vote in favour by Couns. Susan Flowers and Patrick Wilson, Deputy Mayor Jordan Nagel, and Mayor Jeff Genung moved forward despite Couns. Marni Fedeyko’s and Tara McFadden’ opposition.
The operating and capital budgets deliver on council’s strategic plan, reflect community feedback, and recognized the inflationary costs associated with services and delivering capital projects, according to a released statement from the Town of Cochrane. It contains a three-year operating forecast for sustainable service delivery via a 10-year capital plan that lists critical infrastructures investments, while addressing pressures from inflation and growth.
The operation budget for 2023 will be $74.3 million, while the capital budget for 2023 to 2025 will be $86 million. Through council direction, the draft budget was reduced from a proposed 7.6 per cent tax increase to a 3.7 per cent increase for 2023. The increase will amount to $7.67 more per month for the average Cochrane household.
In discussions regarding the operating budget, deputy mayor Nagel gave his support for the proposed increase.
“As I mentioned in the past, I’m happy to see that we brought down the proposed tax increase [to] 3.7 per cent,” he said.
Although Nagel noted he is aware residents will not be fond of any tax increase, in economic terms, he said the increase is more akin to a budget cut, which he feels is the right idea.
In regards to the symbolic issue of an increase in council salaries, Nagel said he will donate whatever increase he gets from the Town’s cost-of-living adjustment (COLA) to a local cause.
“[It’s to be determined] what that cause is,” Nagel said. “I’m actually hoping to find a way to buy a bench for Cochrane to give it right back to the community.
“But if that doesn’t work, I’ll give it to a charity or a community group.”
Coun. Fedeyko outlined her stance that she needed to remain on the side of constituents and be their voice in council's decision-making.
She argued that in order to reliably keep taxes low, council should look to cut items from the budget rather than rely on surplus and anticipated permit revenue. She also did not agree with the 2022 Organizational Chart outlining upper-level staffing for the next 15 years.
“I have never been against hiring certain ‘much-needed’ positions whether in management or a boots- or stilettos-on-the-ground capacity,” Fedeyko said. “I am, however, not in favour of handing over a bag of cash with a ‘Do what you feel is right' approach to administration.”
Fedeyko added she is not against tax increases or hiring staff, only against council leaving decision-making to Town administration.
“If that is the case, and those of us voicing concerns are condemned and shamed, what is the point of having a council?” Fedeyko asked.
Prior to the vote, Coun. McFadden stated her position and addressed why she opposed the operating budget.
“My concerns with the budget include transparency, limited public engagement, increased hirings without direct council approval, [and] the water and waste water utility rates not being included in the process,” she said “Significantly, of course, is the use of surplus to offset expenses instead of saving surplus for needed projects.”
She added that there is a desperate need in Cochrane for recreational sites like soccer and baseball fields, alongside new libraries and theatres.
“Each of these have significant price tags that we need to save for,” McFadden said. “And our public engagement shows that 60 per cent of respondents want to use tax dollars to build financial reserves for future infrastructure.
“I feel it’d be better used to use our surplus for saving for these types of projects.”
Another significant concern for McFadden was the budget being on track to be 135 per cent of the council-approved, tax-supported debt limit in 10 years.
“While it has been identified that plans and strategies can be adjusted to address this concern, I feel we need to be looking ahead to save money for these future projects and not to be using this year’s surplus to offset the budget’s expenses,” McFadden said.
Coun. Flowers said that over the past few years, she felt like council was playing catch-up after receiving bad advice and not raising taxes, when necessary.
“… I know that some people are unhappy with the process this year, and we’re going to improve it,” she said. “But I feel like we worked hard to get the number down, [and] I’m happy with where we are and I will be supporting it.”
Coun. Wilson noted that although he shares some sentiments regarding the comments made by Couns. Fedeyko and McFadden, he acknowledged he voted in favour of the budget.
“It gave me a great amount of confidence to know that we are doing an inner organizational review, upcoming for compensation to make sure we’re where we need to be, he said. “I believe we are; I’d just like to know we went though that with a comb and made sure we are happy there.
He is also pleased to see that problems in regards to the budgetary presentation to council have been identified and addressed by a task force that will hopefully improve the decision-making process for budgets in upcoming years,
Toward the end of the discussion, Mayor Genung inquired with Coun. McFadden on her stance against the operational budget despite her request to add an additional $10,000 for a crossing.
McFadden said her approach is to see if she can support a majority of the budget process, although there are lots of pieces that she supports and believes council should consider including, she does not agree with the overall process.
“I appreciate the feedback,” Genung said. “…We are embarking on a budget review process task force [and] I look forward to the outcome of that. And next year at this time, we can hopefully [sit] around this same bench not criticizing our own process but really digging into the nuts and bolts, and the dollars and cents of the community’s budget.”
Genung thanked administration for their work, adding he looks forward to the improvement of the budget-making process and is optimistic that it will be in a better place in the future.
“For me, this budget is about finding a balance,” Genung said “A balance between continuing to deliver on the exceptional services that Cochranites expect in our community and being mindful of the economic environment we find ourselves in with the inflation that deputy mayor Nagel has identified.”
