Recap of the 2027 Operating Budget deliberations

Lethbridge residents will soon know what impact the City of Lethbridge 2027 Operating Budget will have on the community.

On Wednesday, Lethbridge City Council met as Community Issue Committee (CIC) to begin and complete deliberations for its 2027 Operating Budget – a one-year stub budget.

Recommendations from these deliberations will be forwarded to City Council for potential approval at the June 23 Council meeting. As proposed, and if approved by Council, Lethbridge taxpayers will be looking at a 2.67 per cent increase to the Municipal portion of their property taxes in 2027.

Darrell Mathews, Chief Financial Officer & Treasurer, began the meeting by providing a recap of the 2027 Operating Budget Update, featuring an introduction and summary, proposed reduction initiatives, grant and fee for service components. The full draft budget can be viewed here.

Page numbers from the draft are included below for each item discussed. Wednesday’s deliberations included the following items:

• At the start of Wednesday’s meeting, City Clerk Bonnie Hilford withdrew proposed initiative R-6 – Advertising Reduction (page 65) with an intent to bring it to the 2028-2031 Operating Budget deliberations.
• A-1: Asset Management Reporting Specialist (page 53). Proposed funding source is taxation for $121,765. Mayor Blaine Hyggen’s motion to refer this proposed item to the 2028-2031 Operating Budget deliberations was carried 5-3 (Councillor Ryan Parker was absent from the deliberations).
• A-2: SouthGrow Regional Initiative (page 54). Proposed funding source is taxation for $10,000. Membership in SouthGrow can support the City’s ability to connect and collaborate across the region, including around economic development and investment attraction and broader advocacy efforts. From a 6-2 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• A-3: Chinook Arch Member Library Board & Municipal Membership Fee (page 55). Proposed funding source is taxation for $57,091. This would include an ongoing membership fee with a per capita levy rate of $7.76. The Chinook Arch Regional Library System (CARLS) supports 33 independent library boards in southwestern Alberta, so that all area residents enjoy relatively equitable access to public library services. The CIC also recommends City Council direct the City Manager to notify in writing to CARLS by September 1, that the City does not accept the levy increase from $7.76 to $8.17. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• A-4: Chinook Arch Member Library Board & Library Membership Fee (page 56). Proposed funding source is taxation for $26,264. This would include an ongoing membership fee with a per capita levy rate of $3.57. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• A-6 (amended): Lethbridge Senior Centre Organization (LSCO) Operating Grant (page 58). Proposed funding source is through a Municipal Revenue Stabilization Reserve (MRSR) one-time allocation for $75,000. This measure will reduce short-term expenses and allow them to redirect unrestricted donations and earned revenue toward rebuilding their reserve fund.
• A-7 (amended): Nord-Bridge Senior Centre – Operating Grant (Continuation for 2027) (new attachment). Proposed funding source is through a MRSR one-time allocation for $75,000.
• N-41: Creative Industries Cluster Ignition – Film, Television and Electronic Gaming (new attachment). In a 7-1 vote, CIC recommends that Council amend N-41 from the 2023-2026 Operating Budget to reallocate the City’s portion of the remaining unexpended funding of $239,334 to offset any of the one-time allocations from the MRSR made as part of the 2027 Operating Budget.
• R-1: LGFF Operating Grant (page 60). This would have a taxation reduction of $650,000. This Provincial grant has not been previously included in the City’s Operating Budget. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-2: Corporate Restructure Saving (page 61). This would have a taxation reduction of $203,580. As a result of corporate restructure savings, certain budget allocations are no longer required and can be removed without impacting service delivery. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-3: Governance Standing Police Committee (page 62). This would have a taxation reduction of $80,000. With the dissolution of the SPC governance model, these funds are no longer required. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-4: Lethbridge International Air Show Grant (page 63). This would have a taxation reduction of $17,500. In 2024, the Lethbridge International Airshow Association announced its dissolution, therefore the grant is no longer required. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-5: General Revenues – Tax Payment Penalties (page 64). This would have a taxation reduction of $100,000. The purpose is to more accurately align budgeted tax penalty revenue with recent experience to mitigate broader budget pressures. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-7: Fees for Subdivision and Development Appeal Board (SDAB) and Community Requirement Appeal Board (CRAB) Appeals (page 66). This would have a taxation reduction of $1,500. The purpose is to support financial sustainability by introducing a user-pay model for appeals. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-8: Honorarium Reduction (page 67). This would have a taxation reduction of $48,000. This would eliminate honorariums currently provided to public members who serve on a volunteer basis on Boards, Commissions and Committees (BCC). From a unanimous vote, this recommendation was defeated.
• R-9: Councillor Assistant – Training reduction (page 68). This would have a taxation reduction of $4,000. For the past four years, this budget has not been used. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-10: Regulatory Services – General Training reduction (page 69). This would have a taxation reduction of $2,000. The purpose is to ensure responsible financial stewardship while still maintaining sufficient resources to support essential training requirements. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-11: Workflow Efficiencies Integration Modernization (page 70). This would have a taxation reduction of $22,000. The work leveraged existing corporate technology and internal IT resources. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-12: Engineering Planning (page 71). This would have a taxation reduction of $19,275. Transition of work from external to internal. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-13: Fleet Management & Common Maintenance - Advertising (page 72). This would have a taxation reduction of $2,000. The current funding level exceeds operational requirements. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-14: Fleet Common Maintenance - Training (page 73). This would have a taxation reduction of $10,000. The current funding level exceeds operational requirements. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-15: Subdivision Revenue Contribution to Operating Budget (page 74). This would have a taxation reduction of $100,000. The Lethbridge Land department is funded by subdivision surplus. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-16: Advertising Agreement (page 75). This would have a taxation reduction of $1,500. An advertising agreement with the University of Lethbridge up for renewal in 2026 was not renewed. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-17: Utility Billing & Customer Care – Monthly Administration Fee (page 76). This would have utility charges of $480,000. A proposed $1 increase to the monthly Administrative Fee on customers’ utility invoices. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-18: Utility Billing & Customer Care – Printed Utility Invoice (page 77). This would have utility charges of $400,000. A proposed $2 monthly increase for customers who choose to have a printed mailed invoice. From a 6-2 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-19: Utility Billing & Customer Care – Utility Invoice Reprint Fee (page 78). This would have utility charges of $20,000. This would be a new $5 fee for customers who request to have their utility invoice reprinted. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-20: Eliminate Saturday Summer Service for Routes 51, 52 & 53 (page 79). This would have a taxation reduction of $82,320. This would reduce those routes near the University of Lethbridge Saturday service from May through August when student demand is lower. On Demand service would remain. From a 5-3 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-21: Eliminate Summer Service for Route 62 (page 80). This would have a taxation reduction of $159,359. This would remove the route near Lethbridge Polytechnic from May through August when student demand is lower. On Demand service would remain. From a 5-3 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-22: Distribution Operations (page 81). This would have savings on utility charges of $353,200. This would reduce labour costs in the Electric Utility Department. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-23: Eliminate Christmas Tree Recycling Program (page 82). This would have savings on utility charges of $16,000. Given that trees are not as popular as they once were (less than 1,000 were collected last year) and the availability to put them (cut down) into an organics cart, this program could be limited or cancelled. From a 5-3 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-24: Eliminate the Fall Leaf Collection Program (page 83). This would have savings on utility charges of $55,000. This would be a service level reduction. With a 4-4 tie vote, this recommendation was defeated.
• R-25: Eliminate Free Saturday Disposal at the Waste & Recycling Centre (page 84). This would have savings on utility charges of $258,750. The WRC would no longer provide free disposal on Saturdays. From a 6-2 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-26: Eliminate Summer Hours at the Waste & Recycling Centre (page 85). This would have savings on utility charges of $82,000. The WRC would eliminate extended summer hours. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-27: Yard Waste Sites Closed on Statutory Holidays (page 86). This would have savings on utility charges of $15,087. This would be a service level reduction. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-28: VLA.com Arena Increase in Concession Prices (page 87). This would have a taxation reduction of $30,000. This would raise the price of top selling items by $0.25. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-29: VLA.com Arena Convention and Training Reduction (page 88). This would have a taxation reduction of $10,000. This would be a spending reduction for these matters. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-30: Fire & Emergency Service Training/Travel Reduction (page 89). This would have a taxation reduction of $55,000. This would be a spending reduction for these matters. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-31: Cemetery Maintenance – Early Fall end (page 90). This would have a taxation reduction of $11,983. This adjustment is based on reducing service levels at the end of the season when the volume of begins to slow down. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-32: Cemetery Maintenance – Early Summer (page 91). This would have a taxation reduction of $14,092. This change would result in a reduction in service levels of general ground maintenance. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-33: Cemetery Maintenance (page 92). This would have a taxation reduction of $23,488. This would reduce service levels throughout the cemeteries by decreasing the frequency of specific grounds maintenance duties. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-34: Parks Chemical Application (page 93). This would have a taxation reduction of $71,902. This would reduce service levels and feature a scaled-back broadleaf weed control program for irrigated turf areas. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-35: Parks Dryland Mowing (page 94). This would have a taxation reduction of $38,700. This would reduce service levels on mowing frequency in dryland areas, specifically linear parks, roadside buffers and access roads. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-36: Annual Flower Planting (page 95). This would have a taxation reduction of $21,000. This would eliminate annual flower planting throughout the City’s parks. From a unanimous vote, this recommendation was defeated.
• R-37: Parks Irrigated Mowing (page 96). This would have a taxation reduction of $38,700. This would reduce the mowing frequency in irrigated buffers, linear parks and open spaces. From a 6-1 vote (Deputy Mayor Rajko Dodic declared a perceived conflict and did not vote), this recommendation will move forward and be added to the draft budget for potential approval.
• R-38: Parks Irrigation (page 97). This would have a taxation reduction of $96,000. This would be a service level reduction in irrigation operations. From a 7-1 vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-39: Parks Maintenance (page 98). This would have a taxation reduction of $82,700. This would have a service level reduction of parks maintenance including emptying of garbage, trimming shrubs and flower maintenance. From a unanimous vote, this recommendation was withdrawn.
• R-40: Rec & Culture Training Budget Reduction (page 99). This would have a taxation reduction of $15,000. Training opportunities have transitioned away from in=person training to virtual and online training. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• R-41: Digitization of Leisure Guide (page 100). This would have a taxation reduction of $15,000. The department would continue to provide a much-simplified version of a printed format, but the focus would be on a digital format. From a 6-1 vote (Councillor Al Beeber declared a perceived conflict and did not vote), this recommendation will move forward and be added to the draft budget for potential approval.
• R-42: Seasonal Public Visitation Opening Hours Reduction – Fort Whoop-Up (page 101) This would have a taxation reduction of $25,555. This would see a reduction of the seasonal public visitation hours at Fort Whoop-Up from seven days per week to five. From a unanimous vote, this recommendation will move forward and be added to the draft budget for potential approval.
• N-31: Indigenous Programming (Continue Pilot Project for 2027) (page 102). Proposed funding source is through a MRSR one-time allocation for $15,500. This project would support the work on the Indigenous Curator, Community Programmer and School Programming staff in developing Indigenous content. From a 6-2 vote, this recommendation was defeated.
• N-32: Indigenous Curator (Continue Pilot Project for 2027) (page 103). Proposed funding source is through a MRSR one-time allocation for $59,700. This position plays a key role in ensuring the overall quality and accuracy of all Indigenous content at the Galt Museum and Fort Whoop-Up. From a 6-2 vote, this recommendation was defeated.

The City of Lethbridge practices multi-year budgeting. The current four-year 2023-2026 Operating Budget was approved at the end of 2022. In May 2024, City Council approved changes to the Capital and Operating Budget process by staggering the two budget deliberations by one year. Due to this process change, the 2023-2026 Operating Budget will need to be extended by one more year to include a “stub year” for 2027. 

In accordance with Municipal Government Act requirements, City Council must approve an operating budget by December 31 so the City can pass a property tax bylaw. 

The 2027-2030 Capital Improvement Program (CIP) budget deliberations and approval will take place in November 2026. The next full four-year Operating Budget deliberations, for 2028-2031, are anticipated to take place in late 2027.

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