Municipalities plan for economic turbulence, Jasper’s taxes set to increase

Despite the uncertainty our country’s failing economy is sure to bring, mimicking other towns’ decisions to freeze next year’s budget is not a likelihood in Jasper, said Mayor Richard Ireland last week.

“Given our situation, that is that we are currently engaged in collective agreement negotiations with our unionized staff, it doesn’t sit well,” he said. 

At the end of last month, the Rocky Mountain Outlook reported that Banff council asked staff to rewrite the 2009 budget to reflect a zero per cent tax increase in response to turbulent economic times. 

Banff Mayor John Stutz brought forward five motions to achieve the zero increase, including a wage freeze for all town staff. “We play a critical role in our economy and we have to do our part to make sure our situation is sustainable,” the Outlook quoted him as having said.

Jasper’s council entered its “intense” budget discussions on Tuesday, according to Ireland. Though he doesn’t plan to recommend any drastic measures, the economy is up there on the mayor’s mind.

“It is one of the many things I’ve been thinking about, there’s still so much uncertainty, what will happen and what can be done,” Ireland said. “It’s hard to know, even the (article) that I read from Banff, I think it says anywhere from a 10 to 30 per cent slowdown. 

“That is a huge range. What exactly do you plan for?”

Taxes will increase in Jasper to reflect other costs going up. “Despite the recent drop in oil, for example, our energy costs have gone up around nine per cent,” Ireland said. “We still want to keep our lights on and buildings heated, so there is going to be an impact on the cost to operate the municipality. I don’t know where wages are going to settle out.”

Employees shouldn’t bear the brunt of an economic downturn, he said. “Our workers are like workers everywhere, they’re facing an increased cost of living, so they’re not going to be looking to have reductions in pay and I don’t think they’re going to be looking to hold the line,” Ireland said. “There will be increased costs to the municipality, we’re going to have to balance that against the services people expect and need.”

Elsewhere in the country, mayors are making big decisions as cities and towns develop their operating budgets for next year. 

In Montreal, the city’s $4.071-billion operating budget for 2009 freezes residential and non-residential property tax bills. Toronto’s Mayor David Miller recently announced he would forego a salary increase in 2009 after asking city departments not to increase their budgets. In Winnipeg, the city’s property tax will be frozen in 2009 for the 11th year in a row.

Only time will tell the effect Banff’s council’s decision will have on that town, but it doesn’t look like Jasper will do the same. “I can say that to follow a similar route in Jasper would necessarily mean either eliminating or reducing services,” Ireland added.