Last night (December 18), City Council heard a presentation on financial indicators for 2016, the last full year available.

Dorian Kachur, Manager of Strategic Business Services for the City of Airdrie, presented information from Alberta Municipal Affairs Financial Information Returns for 2016. Airdrie was compared to five other mid-sized Alberta cities: Grand Prairie, Lethbridge, Medicine Hat, Red Deer and St. Albert.

Setting the tone for the presentation, Kachur explained the job of a municipality is to balance the wants of today with the needs for tomorrow. Council's priorities speak to fiscal sustainability risk mitigation, educating residents on the fiscal impacts and costs of services, maximize operational efficiencies and ensure property taxes are fair relative to the services provided.

Kachur noted that there is a widening gap between Airdrie and other mid-sized cities in Alberta. Taxes are 39 percent lower per capita than the average, total expenditures are 35 percent lower and debt is 39 percent lower. While this is positive for tax payers, Kachur explained it has also raised a red flag going forward. With Airdrie lagging behind comparable cities, there is a fear that Airdrie may in fact be falling too far behind.

Kachur said the risk is that there is too much of a reliance on growth, which could level out. The City needs to evaluate if they can continue to deliver services in the future without a significant tax increase. If the City is not able to raise sufficient revenue, that could lead to either a large tax burden shouldered by residents, or reduction of the services currently enjoyed. A recent tax increase approved as part of next year's budget and contributions to a tax stabilization fund in 2018 will help manage that risk.

There is also a gap in personnel costs in Airdrie compared to other similar communities. Airdrie's costs for salaries, wages and benefits at the City are 39 percent lower than the average. Kachur said that gap demonstrates efficiency, showing Airdrie is able to deliver services with a leaner workforce. Even so, staff at the City are engaged, with 97 percent saying it is a good place to work.

Kachur also noted that recent surveys show resident and business satisfaction is high. A citizen satisfaction survey conducted this year demonstrated 91 percent of residents are satisfied, while the last business satisfaction survey conducted in 2015 showed an identical number.

The presentation was made for Council's information.

 

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