It was a great week for the fiscal conservatives at town hall.
First, they scored a huge $1.2-million savings from the tendering process to boldly move forward on the huge demolition project at the decommissioned sewage treatment plant.
And then on provincial budget day on April 14, after weeks of fidgeting, fretting and worrying, the good mayor and senior administrative staff find out the NDP government won't cut funding for critically important capital projects. Premier Rachel Notley's crew is not even slicing the MSI operating grants, which means the legion will almost certainly get its money to run its handi-van and the tourism centre will be funded.
Added to all of this, the town earned a well-deserved audit report last week from its accountants on the way they run the town's finances. Auditors went out of their way at council on April 11 to note that while the town is legally able to run up a tab as high as $25 million, Innisfail only carries a $500,000 debt.
Is there any provincial government in the country that is listening to this prudent way of managing fiscal affairs?
OK, the Alberta government will be running huge billion-dollar debts for quite some time, but at least they don't seem intent on passing that on to municipalities, at least not yet. And we still don't really know what the impact will be when the new carbon tax kicks in next January.
What we do know is that there will be levies on the use of oil and gas everywhere, and that includes every town building and office. How much the annual carbon tax levy will total is anyone's guess. The question is whether that cost will be passed on to taxpayers in the 2017 municipal budget.
There is a faction on council that wants to see municipal tax increases to cover expected and unexpected rising costs for doing business and managing the town's affairs. That includes Mayor Brian Spiller who wanted council last year to go for a one per cent property tax increase but was out- voted and council opted for a zero per cent increase. Council can still hike the tax rate when it considers the Tax Bylaw on April 25, but because the town no longer has to fret about lost provincial MSI revenue that likely won't happen.
Steady as she goes will be the operative council mantra, especially when good fortune and news come your way.
Next year, however, that feel good mood may change. Those who opposed any tax hikes in 2016 may want to do a right turn in 2017 to compensate for the carbon tax's impact on town coffers.
There's also the issue of the loss of the social housing grant the town used to receive from the Alberta government to cover the province's taxes on housing the senior level of government owned. We already know the town is taking a $50,000 hit on that one, which represents two-thirds of a full percentage point tax increase that Spiller supported last year.
Yes, we can all feel good now but there could be a storm around the corner, and the reality is that it just might blow in with a cold hard bite.
