Budget 2022

Town Council approved the 2022 Operating and Capital Budget at its April 11, 2022 council meeting.

More detailed information will be provided once the Budget Book is completed in its entirety and will be made available on this page.

Overview & Key Considerations

Overall budgets are back up to the 2019 levels, after 2 years of budget restrictions due to pandemic impacts on operations. Town Council maintained budgets to maintain a zero tax increase for the 2020 and 2021 year. Staffing levels and facility operations are back to pre-pandemic levels and the budget reflects this return to normal operations. However, aside from considerable inflation costs, there are some ways that the Town faces unique considerations this year.

Some key pressures that the Town faces for the 2022 budget are:

    • RCMP Costs. Due to decisions made at the federal level, all Alberta municipalities need to cover retroactive pay that goes back five years, within the 2022 fiscal year. This, along with new costs of RCMP laboratory work, is about $400,000 and accounts for ~4% of the proposed 4.7% tax increase for 2022.
    • Waste disposal costs. Waste disposal costs are up 720%, due to a budget shortfall cost that are passed on to the Town by the Peace Regional Waste Management Company (PRWMC). For many years the Town benefited with a subsidized rate because of the oilfield industry utilizing the PRWMC. During the last few years, industry has scaled back, but the company’s costs have continued. This year the resulting shortfall has been passed on to the ownership partners of which the Town is a 3/7 owner. We are optimistic that 2023 will be a better year fiscally for the PRWMC, based on forecasted usage. The 2022 increase of $398K is equal to ~ a 4% increase to the tax rate.

The 2022 approved Net Municipal Tax Requirement of $11.82 million results in a 4.7 per cent municipal property tax increase. Administration has incorporated cost efficiencies, corporate adjustments and service level adjustments reducing the initial tax requirement of 13.7 to 4.7 per cent. As a result of a decision made at the April 11, 2022 Regular Council Meeting, the tax rate will be lowered to an increase of ~2%, offset by the reallocation of funds from the Disaster Recovery Program Reimbursement to the 2022 Operating Budget.

For more details on this decision, the council meeting highlights with attached audio is linked below.

April 11, 2022 Council Highlights

Below is a graph indicating how property tax, based on the average cost of a home in Peace River ($254,000), gets divided.

2022 Capital Budget

The Approved 2022 Capital Program includes 19 projects totalling $7.18 million.

Utility Budget

Water and wastewater operations provide for furnishing water and sanitary sewage disposal services to industrial, commercial and residential areas within the town and some surrounding areas.

A motion was carried at the April 11, 2022 Regular Council Meeting to have a full cost recover water rate model phased in over two years with implementation commencing July 1, 2022.

A handout containing information regarding these changes in water rates can be accessed here: Water Rates 2022 Information Handout

In terms of solid waste, the charge is $19, effective July 1, 2022. To recover the $373,000 charge from PRWMC, a solid waste levy of $29 per month will be imposed, effective July 1, 2022, for a period of 6 months.

Questions

Questions about the approved budget or process can be directed to Terry Websdale, Director of Corporate Services at [email protected] or (780) 624-2574 ext. 1018.

Budgets from previous years

Budget 2021

Budget 2020

Budget 2019

Budget 2018