Town of Drumheller council has approved amendments to the 2025 Utility, Operating, and Capital budgets, as well as a one per cent overall increase to the previously approved tax rate bylaw following the regular Tuesday, April 22 council meeting.
These amendments are due to several significant budgetary pressures stemming from multiple unplanned water operations repairs at the beginning of 2025, and projected budget shortfalls in both the Operating and Capital budgets due to unplanned repairs and increased costs stemming from ongoing instability due to tariffs imposed by the United States.
Chief Financial Officer and Corporate and Community Services Director Victoria Chan explained that council previously approved the 2025 Utility Rate Bylaw in November 2024, and the budget overages and shortfalls caused by unexpected repairs in early 2025 will not affect user rates. However, it was noted these will be funded through both Water and Sewer/Wastewater Reserves.
A total of $408,000 was requested to support four projects--cleaning and isolation valve repair at the Raw Water Ponds, as well as water main repairs in the amount of $100,000 each; land purchase at 2940 South Railway Avenue in the amount of $188,000; and reallocation of the energy supervisor salary in the amount of $20,000-with $304,000 being transferred from the Water Reserves, and $104,000 transferred from Sewer/Wastewater Reserves.
Along with the Utility Budget transfers, council also approved a transfer from reserves of $443,544 to support an anticipated deficit in the 2025 Operating Budget. This deficit stems from four major areas-an additional $21,000 for IT Services, which was recently awarded to Reality Bytes Inc.; along with an unplanned smoke alarm issue at the Badlands Community Facility (BCF) which required $25,000 to rectify the issue to address the concern, and an additional $10,000 required for an unplanned fire pumper repair.
The Town is also preparing for potential cost increases stemming from the implementation of tariffs by the United States by preparing to use an estimated $106,000 in cost savings from the elimination of the Consumer Carbon Tax to offset these potential tariff impacts.
Two additional projects which were not initially included in the 2025 Capital Budget have also caused shortfalls within the budget. A Design Phase Readiness project for the Hoodoos Parking area, estimated at $250,000, which will be funded through Capital Reserves and revenue from the Paid Parking program, will be added to the Town’s Capital projects, as well as reclamation of Lehigh estimated at $400,000; Lehigh reclamation will be partially funded through a $226,000 grant from the Alberta Drought and Flood Protection Program, with the remainder being supported by Capital Reserves and tax base funding.
To accommodate for the Operating and Capital budgetary shortfalls, council approved a transfer from Capital Reserves in the amount of $150,000 and $212,280 from the Contingency Reserve to support the two additional Capital projects. Council also approved a one per cent increase to the tax rate, bringing the total tax rate to four per cent, which will increase the Operating Budget by $47,000 and the Capital Budget by $424,000.
