Both Canmore and Banff have crafted lean operating budgets and proposed tax increases in an attempt to maintain current service levels in spite of reduced revenues.

Canmore proposes an operating budget increase of 1.9 percent or $480,000 over 2009 levels to $26.2 million. As a result, the overall tax increase in Canmore is estimated at 5.8 percent with the municipal portion growing by an estimated 2.7 per cent.

Including utilities and solid waste services (usually excluded because they are rate supported rather than tax supported) the overall increase is 2.5 percent or $410,000 over 2009 levels to $33 million or $27 million before transfers.

In Banff, overall increases of 3.1 percent are proposed or $1.3 million over 2009 levels to $27.8 million total. Banff figures include utilities and solid waste services. Taxes in Banff will increase by 3.1 percent with the municipal portion of that increase growing by 6.3 percent.

A large portion of the tax increase in Banff, about $244,000, will feed capital reserves. Additional increases are driven by increases in landfill fees of $93,000, fire services dispatch fees of $19,000 and RCMP costs of $50,000. The town is also absorbing a $60,000 loss in Recreation Centre operating revenue while the facility is being renovated and an additional $39,500 in fees paid to CP Rail for the lease of Recreation Centre lands. The largest increase in Banff is $223,000 to cover cost of living increases denied to staff in 2009 when wages were frozen. Town staff explain this will retroactively cover the missed wage increase.

A slow-down in tourism is also reducing revenues in Banff. Indicators of visitation, including transit, utilities and solid waste hauling revenues, were down in 2009. Revenues from business licensing and tourism marketing fees are also down. However, some are hopeful that the worst is over.

“With a lot of revenues tied to tourism we’re seeing a decrease in 2010, definitely over 2008 and static over 2009. Hopefully we saw the bottom in 2009. We’re not expecting a huge turnaround in 2010, but about the same in terms of municipal revenues,” says Kelly Gibson, senior accountant with the Town of Banff.

Banff services will remain largely the same this year, however transit service will be cut.

“At this point, we’ve decreased transit frequency by one peak season route – a peak bus that ran every 20 minutes last summer – because revenues haven’t justified the service. The fireworks budget has also been reduced. Other than that, nothing significant has changed. We’ve tried to maintain our services through next year and we’ll reassess in 2011 if things need to change,” says Gibson.

Additional cost savings in Banff were found by redirecting $30,000 from the capital reserves to fund an Engineering summer student program. The overall training and development budget was also reduced by $20,000. Some modest increases were permitted including an additional $1,700 for Banff Lake Louise Tourism’s Christmas in the Rockies and festive carolling programs, $2,000 for Bow Valley Kidsport, and $4,800 to the Banff Public Library.

In Canmore, increases are being driven primarily by expensive utilities contracts which will see the Town pay $106,136 more for power, $36,364 more for natural gas, and $33,524 more for fuel. In 2009, Canmore also saw increased legal fees of $103,731 due to a battle over the Three Sisters land. Although the Town does not anticipate these costs continuing, standard practice requires them to be included in the 2010 budget. As in Banff, the largest increase in Canmore is $247,000 for increases to staff salaries, wages and benefits.

Overall non-tax revenues in Canmore have decreased by 4 per cent, mostly due to a 6.3 per cent drop in recreation sales and a 5.1 per cent drop in licensing and permits. Tax revenue from real assessment growth – new properties coming online – was also relatively low this year at 1.71 percent. The Town anticipates future decreases as Canmore approaches build out. To offset these losses, taxes will increase in the future. To reduce the impact, Canmore has created a new tax stabilization reserve and will contribute $350,000 to this reserve in 2010.

“The contributions to the tax stabilization reserve mitigate an anticipated further slowdown in real assessment growth and future operational pressures. New construction growth in Canmore will be coming to an end. In years past, we’ve seen $300,000 additionally per year with a range of new properties coming on, but this will slow down or stop. We can draw from the reserve to slow the tax increases,” says Sandy Croteau, senior manager of financial services for the Town of Canmore.

Canmore does not anticipate changes in services in 2010.

“Managers were tasked this year with putting together a very lean budget – as tight a budget as possible without impacting service levels,” says Croteau. “We’ve done some internal shuffling and in 2009 we held certain positions vacant. So we are conscious that the staff is doing more with less but we’re hoping the public doesn’t see the impact.”

The Town has also tightened its supply budget by $121,331, reduced transfers to the computer reserve by $70,200 and reduced transfers to capital reserves by $200,000. Fortunately, capital reserves are currently in line with the five-year capital commitment and the cost of computer technology is falling. The Town of Canmore will also enjoy debt servicing savings in 2010 of $117,000.

Canmore’s operating budget has been approved. Banff’s operating budget has been adopted but not approved, pending capital budget information from the Province that may result in changes to the operating budget.