All right.
Good morning, everyone. We'll call the
meeting to order at 9:02 a.m. this
morning. In the true spirit of
reconciliation, we acknowledge all those
who call this land home now and for
thousands of years in the past. May we
respect each other and find
understanding together and recognize the
benefits that this land provides to all
of us. We are here today uh to commence
our 2025 20 or 2026 budget
deliberations. Uh before you you have an
agenda. I would entertain a motion to
accept the agenda. John.
>> Thank you, Mr. Chair. I'd like to move
» Thank you, Mr. Chair. I'd like to move
to adopt the agenda for the 2026 budget
deliberations day one as presented.
Thank you, John. Is there any
discussion? Call the question. Those in
favor? Opposed? That is carried.
» Haley, I will turn the floor over to
you.
» [clears throat]
>> So, as part of the 2025
» So, as part of the 2025
um or 2026 budget presentation, we'll
first proceed with a 2025 um council
orientation to budgeting. Uh Haley will
move into forecasting through the end of
the year. I think it'll provide
important context and then we'll we'll
>> call the meeting to order at 9
» call the meeting to order at 9
>> then and then we will move into the
» then and then we will move into the
budget plans for 26 27 and 28
» back to the future.
Um Reeve Campbell I brought the jar. As
they say old habits die hard. So, we'll
just start out with that. [laughter]
Um, so just wanted to walk through a
budget orientation for council and just
a highle overview in terms of the
election has passed. And so now we've
got kind of this opportunity to do some
orientation with council of of various
topics that we'll see throughout um the
next little while. And so this one is
kind of a kickoff to that in terms of
talking about what the budget is to help
just understand the process and what
that might look like and what the
process has been thus far. And so if we
talk about what is a budget, it's
basically a business tool that's used
for future planning and activities. It
anticipates revenue and estimates
expenditures.
uh the legislative budget requirements.
Uh the MGA the municipal government act
includes various aspects of the
requirements that relate to budget.
Council must adopt an operating budget
each calendar year. Uh and they must
prepare a written plan in terms of the
financial operations over at least a
three-year financial period. And then um
council must also adopt a capital budget
each calendar year. and uh that must be
prepared in terms of some sort of
written plan that looks at a 5-year
projection.
Uh in terms of what's included in the
budget, a municipality can only make
expenditures that is within an operating
budget, an interimm budget or capital
budget or otherwise authorized by
council. And uh the sections of the MGA
include the listing of items for
operating in capital budgets. Um and
just some information about estimated
amounts in terms of transfers as well.
And we municipality cannot run a
shortfall without ministerial approval.
Um and it must be recovered within the
next calendar year.
So there's lots of um factors that go
into consideration when determining
revenue amounts. um council direction.
Um
there's user fees, property assessment,
um various kind of capital impact. We
look at grants. We look at uh utility
rates, other revenue source
opportunities,
um the economy and kind of the impact of
that. And then also then look at uh
property taxes or tax support related to
revenue.
This is a dated uh slide or kind of
statistic, but um it still applies in
terms of kind of the municipal
government's uh impact on the tax
dollars collected as a whole and just
kind of the breakdown between the
federal and provincial. And so, you
know, municipalities continue to be less
than 10% of each house household tax
dollar.
When we look at budget expenditures,
um we review those as well throughout
the budget process to look for
efficiencies within the budget and
opportunities to you know um maintain
service levels and the impact of that.
So that includes obviously council
direction, our infrastructure needs in
terms of future replacements, kind of
balancing the needs versus wants of of
the county, looking at inflation and the
economic factors, legislative
requirements, um the opportunity for
business development,
provincial downloading plays a big
impact um at the county level in terms
of how we provide services to our
residents.
um looking at previous years capital
impact on operation and just our
financial obligations such as debt and
various aspects like that.
So the intention of the budget is a tool
to be used to reflect kind of policy
priorities of county council and provide
um
you know an alignment with the the
policies and bylaws and service levels
and sets the strategic direction and
priorities for administration to carry
out. It's a financial operating and
capital plan. It sets uh spending limits
for service delivery and it's a tool in
terms of communicating how and where
dollars are spent.
The budget process uh is quite lengthy
and complex and so it involves you know
gathering of information looking at
historical information, understanding
the pressures and needs of of the
county. Um, essentially there's kind of
this these four main sequential steps in
in the budget process. Looking at
preparation in terms of gathering all
the information
um, and putting it together in in a way
that allows uh, for the story to be told
about what has changed, what what might
um, be some of the future implications.
It looks at um doing presentations and
deliberations like we're doing today,
looking for council's direction. Um and
then through obviously throughout the
year we monitor and measure the budget
compared to actual on a regular basis
and report that back to council. Um and
then wi with implementation we're
implementing the budget service levels
and projects throughout the year and and
that's all carried out in the cyclical
process.
Uh so we meet with all the departments
to come up with the information
regarding need and potential changes to
the upcoming budget, review kind of the
requirements. uh there's been multiple
meetings in terms of connection points
and just understanding the budget and
what some of those potential changes
are. We ensure that we've got um costs
associated with various um obligations
that are coming up in the next budget
including uh things like uh union
agreements and salaries and uh just the
impact on inflation potentially with
goods and services and just ensuring
that we're maintaining our assets. Um
and then obviously we want to look at
the capital budget from a perspective of
ensuring that we maintain kind of that
competitive um opportunity for when we
go out for tender once once the budget
is approved and looking for funding
opportunities and just uh potential
impacts from the province and other
levels of government.
Budget approval process. So budgets are
presented to council um and then uh
reviewed and and provide council
provides input and just uh insight into
what the budget looks like and how it's
being presented and maybe potential
changes that council wishes to to
provide. Um we typically require a a
budget approved by the end of December.
So, at this point, um, in the budget
schedule, which we'll get to in a
minute, looks at the December 4th, uh,
budget council meeting to review the
budget and and, uh, hopefully approve.
Um, the budget is being presented based
on information that we have and the
levels of service and the requirements
and and necessities. And so one of the
things that is always a little bit
interesting in an election year is just
the fitting the strategic plan of
council with the budget and how those
can ensure we can align those. And so
you know there'll be obviously some
conversations about strategic planning
for for council in the upcoming months.
And so we'll just have to kind of make
sure that we continue to understand how
those are connected and and the and how
they align.
Um in terms of budget implementation, so
the plan determines the work required um
and the projects throughout the year. Uh
it looks at um the costs associated with
with what's being proposed and as it's
presented and approved by council.
implementation stages in the budget uh
process is is responsible for everybody
involved. All the departments need to
understand what's in their budgets and
the impact of of what's going on in
terms of comparison to actuals and uh
budget information is then communicated
with council on a regular basis.
Um and that report back to council is
about monitoring the information and
just um ensuring that we are within
alignment and that everything is uh
progressing as as expected and then any
unexpected things that come up
throughout the year would be brought
back to council in terms of discussion
and and authority and approval. Um and
so we presented uh financial information
throughout the year to ensure that
council is updated on all of that.
Uh so there'll be two aspects to the
budget presentation. The capital budget
is presented by departments. Uh the
budget includes a summary of the
projects and proposed funding. Um and
then obviously the operating budget is
also presented highlighting budget
changes u efficiencies increases and the
overall tax support required.
Some budget considerations that um are
important throughout this process is
just an awareness of provincial
downloading. So sometimes there's some
uncertainty with that which can create
some challenges as we work through this.
Um, and obviously grant funding plays a
big part in our capital budget and and
there's some smaller um impact on our
operating budget um as the province
continues to kind of reduce those grant
funding opportunities uh specifically
for operations, but also we're seeing,
you know, potentially some decreases in
capital as well. Obviously, our the
Alberta economy plays a big part of that
and and just depending on how inflation
impacts and just overall kind of impact
of potentially tariffs and other
different complexities in in the economy
that could impact the budget. uh and we
continue to look for ways to implement
best practices in terms of efficiencies
and uh really understanding kind of the
need of of the county and how we can uh
provide the best service to our
residents. And then um you know, we're
always kind of cognizant of the tax
support requirements and and working
hard to make sure that that we reduce
the impact to our residents.
Uh so the capital budget is constructed
and uh improve the infrastructure
um to the county to provide the highest
level of service within the constraints
of the budget for continued service
levels. Um, we determine kind of capital
purchases in projects based on
condition, risk, and the need to ensure
proper identification and timing of
projects and then uh present a five-year
capital plan with funding options to
ensure that we're continue to meet the
needs of the county and align with
council's strategic plan.
So just in terms of the overall
structure based on the 2025 approved
capital budget uh roughly 24% of the
capital projects relied on grant funding
54% of the capital projects was funded
from reserves um which is mostly related
to fleet purchases and then 23% was
funded from the market access network
pro program um and is specific to pave
roads and bridges.
So grant funding opportunities are
obviously we continue to seek those out
as much as we can to take it full
advantage of that uh when planning
capital projects and and uh
obviously if the grant that's being
proposed for a capital project if it's
not approved then we would come back to
council to give an update on those on a
regular basis as well as provide some
alternative methods for a project to if
we're if it was being proposed from
grant funding and that grant funding was
was denied by another level of
government
operating budget. So, um typically the
purpose of the operating budget is a
reflection of council's uh policy
priorities. The operating budget is set
um for the spending limits for programs
and service level delivery is approved
by council and it's a budget tool for
communication with citizens.
Uh included within the operating budget
is the revenue which relates to utility
rates, user fees, penalties, uh sales of
goods and services, development fees, um
operating grants to various reserve
transfers. Uh once the revenue sources
are identified, the balance of the
revenue collected through is collected
through taxation uh in order to balance
the revenues against operating expenses.
So um expenses take into consideration
financial obligations, council direction
throughout the year, levels of service
and various other aspects like inflation
and evaluating needs versus wants.
So just in [clears throat] conclusion,
the the budget is a financial operating
and capital plan. Uh when determining
revenue and expenses for the budget, we
need to consider all the possible
implications of that. And obviously
there's some unknowns that um
potentially might come up throughout the
year which is why we come back to
council on a regular basis to report out
and get provide updates and um develop
and implement the budget process is
obviously everyone's responsibility. The
budget reflects council strategic plan
and priorities. uh legislation,
efficiencies, funding, all of that are
considered and council ultimately makes
the final decision on the budget and the
levels of service provided.
And that is the end of the presentation
just in terms of the calendar. So we are
um on the November 28th as the first day
of presentation. Um December 2nd will be
day two if required and then um budget
review and deliberations would be on
December 4th with hopefully an approval
on that day as well.
That is the orientation for budget.
[snorts]
>> Awesome. Thank you, Haley. Um I should
» Awesome. Thank you, Haley. Um I should
have said this right off the get-go. I
think before we get started, I just want
to um say thank you and acknowledge all
the time that's that's gone into this. I
know I've spent uh quite a bit of time
in the office over the last few weeks
and um I know how how you know much uh
time and effort it takes to pull all
this together and as much as this is a
year round uh process I I understand
just the the gravity of pulling this all
together for today and and next week. Um
so thank you to all of you that put in
the work to make this happen. We we do
really appreciate it. It's it is
ultimately council's budget, but it is
staff that goes away and does the work
and and pulls it together for us to
deliberate and to to tweak and to push
and pull. So, um on behalf of council,
just thank you. Um I want to acknowledge
what you said, Haley, just the pressures
that we face, you know, external
pressures, um be it downloading from the
province, uh grant funding up and downs,
um and then I guess also just trying to
manage expectations and and meet
changing expectations. I think we
continue to see the expectations of our
stakeholders and rate payers changing.
So it's how do we how do we meet that
and uh and and try and you know keep
things in line and moving forward. So
thank you uh thank you to everyone for
the work and maybe just uh relax. It's
going to be okay. Uh a lot of tense
spaces as well. Um we will get through
this like we do every year. Um, I'm sure
there'll be some hard questions and some
hard conversations, but at the end of
the day, um, we'll get through it and,
uh, just thank you. So, is there
anything else before we get going?
>> Covered it next.
» Covered it next.
>> If not, floor is yours, Haley.
» If not, floor is yours, Haley.
>> Thank you. So, just in terms of setting
» Thank you. So, just in terms of setting
the stage in context for the budget
discussion, just wanted to give a
financial update as to where we're at.
The last um, update was provided, I
believe, in July. And so this is just
looking at kind of 2025 in terms of
where we're at and where we're projected
to be at the end of December. With that,
you know, there's the caveat that
there's still lots of uncertainty in
terms of things come up and, you know,
there might be still some surprises that
happen, but this is uh where we're where
we're projected to the end of the year
based on some assumptions that's been
made to date.
Um so this this slide we we would have
looked at in July and it just kind of
compares the taxes compared to the
requisition. So we collect um county
taxes, we collect the hall route and we
also collect um these are the three
items that are essentially broken out on
on the requisition when we present the
property tax mill rates to council in um
April. And so, uh, at that time we had
anticipated that we would require,
um, approximately $21 million of tax
requisition or tax um, property revenue,
property tax revenue for the county, um,
in addition to the requisitions which is
from the province. So that would be for
education, green acres, um, that sort of
thing. And so that would have totaled
the 28.7.
And based on the requisitions that we uh
tax requisitions that we collected, we
were really close within that of the
28.8, leaving a difference of about
92,000. So that is that hasn't changed
since July. It's just to give an update
and reminder of kind of how close we
were in terms of estimate and
assumptions made um based on assessments
and and various aspects. So,
um, if we look at Oh, yeah.
>> Yeah.
» Yeah.
>> Thank you, Mr. Chair. So, just back on
» Thank you, Mr. Chair. So, just back on
the hall route, $500,000.
>> Yes.
» Yes.
>> That's how do you split that? What we
» That's how do you split that? What we
actually collect as the business tax is
that what you're designating to the Hall
route or
>> So, that is that is not the the business
» So, that is that is not the the business
tax. Um, councelor Hickeyi, that is um
that it's just a a an amount that we
collect as part of maintaining our roads
that has always been historically broken
out um which gets uh incorporated into
maintaining like our hall routes. So,
it's not specifically part of the
business tax. This is on the assessment
uh property taxes um which is separate
from the from the business like head tax
count for the um the municipal access
network kind of program. So that's over
and above that.
» Thank you Mr. Chair. So is the head tax
in that then?
>> No, this is strictly property tax.
» No, this is strictly property tax.
>> Nothing. Okay. There's nothing put into
» Nothing. Okay. There's nothing put into
that from there
>> because all of the head tax gets
» because all of the head tax gets
transferred to the municipal access
network program which is part of all of
the infrastructure capital projects that
you see throughout the capital plan.
>> Yeah. And one thing um it won't be in
» Yeah. And one thing um it won't be in
this presentation but in the in the 26
27 28 budget presentation I think it's
slide 102 we have the market access
network broken out. I think there's
going to be a lot of conversations there
from the business stack standpoint just
because of how it was set up versus how
things have evolved. We've been having
conversations as recently as Wednesday
to try and understand how one side's
indexed, but the program itself might
not be indexed and how that revenue
flows through those reserves. And so I
think that we can have that discussion
today, but I think that's going to be an
entire discussion unto itself for the
market access network because I'm still
learning some things on how that was
originally set up. So,
» thanks. Um, so further council Hickeyy's
question, I guess I'm a little confused
is where does that $500,000 come from or
what does it represent?
it is is collected u on the property
taxes from the residents in terms of
maintaining the hall routes and it's
just in in combination with the
municipal um the market access network
program but it for whatever reason it's
been broken out on the property taxes
for years and so it's it's a property
tax component of for the residents
>> small followup on that so basically
» small followup on that so basically
If we didn't traditionally break it out,
the the line for county taxes would be
20,587,000,
but we break out 500,000 of it. So, it's
it's more of an accounting process than
it is a we didn't collect it from
somewhere else.
>> That's correct. And also the um
» That's correct. And also the um
councelor Kerbis, the the acronym there
is the the waste commission amount
that's broken out. So I'm not sure what
the history there was basically two
lines of information that was available
within the assessment like property tax
notice and those were the like the three
lines that were kind of broken out for
information because obviously we also
have a water commission too but that one
wasn't specifically broken out. So
that's just how it shows up like as in
terms of the information on the on the
property taxes. So I'm sorry if that
caused some more confusion than than not
but
>> we're good now. [laughter] Thank you.
Thank you. So, the education tax that
goes to both school systems, right? But
all goes to the provincial government,
but you can check on your taxes which
system you want it to go to. Is that
correct? Still,
>> that's correct. Yes. Yeah.
» that's correct. Yes. Yeah.
>> Yes. And that's all part of that
» Yes. And that's all part of that
requisitions line. I did not break out
kind of the provincial green acres and
and all of that within that. Yeah.
So if we just look high level um at the
departments of the utilized versus
remaining as of this is as of October
31st um we're in good shape in terms of
ensuring that we're going to meet our
our budgeted information. Just wanted to
kind of give a visual of where we're at.
So the the blue is utilized, the green
is remaining. There's some obviously
some significant adjustments that happen
at the end of the year in terms of year
end and inventory and just fuel and
different things like that. So, um but
it looks at this point based on my
projections to the end of the year,
we're we're in we'll meet our targeted
budget. So, what I did was I just took
the information to the end of October
31st and made some assumptions for the
remainder of the year for November and
December. Um, one of the significant
assumptions in here is that water rates
are assumed to be unchanged um, from
charges from the city. And so there's
some some uncertainty there, but this is
our forecasted projection to the end of
the year. So, I've broken this out to
include our tax uh penalties and our
interest income as well as each of the
departments in terms of where their
annual budget is at or their actual year
to date is at which totals at the at the
bottom there. And then it just in uh all
of the remaining items that still need
to be included. So I've included broken
out some specifically like insurance uh
are remainder uh remaining debt payments
which happen uh cycllically throughout
the year but there is another bunch of
debt payments that happen at the end of
December 31st. Um we've got uh some
reserve transfers that still need to
happen that we don't typically do till
the end of the year when we kind of know
where everything is at. And so based on
our total budget of uh for the for the
uh county at the 20.0
uh8 million and compared to where we
anticipate to be at the end of the year,
we're going to be very tight in terms of
our ending. This shows a slight
negative. Obviously, we would uh need to
kind of revisit some of those
assumptions. I I was conservative in my
estimates because I didn't want to uh I
just wanted to make sure that we didn't
miss anything. And so there's obviously
if an emergency response incident were
to happen that creates some uncertainty
about the impact and pressure on on our
budget, but we've got some year-end
completion work to do obviously still
and just some cleanup adjustments. So um
I think at this point the budget is is
sufficient but we're going to be tight.
Okay, Haley, I got a I have a question
here.
>> Yeah.
» Yeah.
>> So, I'm just looking at
» So, I'm just looking at
your variance number. That's not correct
because you added the two together.
You don't have a $900,000 variance.
Well, that um currently at the year to
date for utilities because we haven't
done all of our uh reserve transfers,
it's showing as a negative 418, which is
why those two numbers are added together
because essentially the the budget for
utilities was a tax like was a pressure
of 550,000
and we are currently sitting at a
$418,000
um credit because none of the reserve
transfers have happened yet. So that's
why it's the two added together.
» Doesn't show that.
>> Well, there's a negative right in front
» Well, there's a negative right in front
of the 418. That's why there's a little
dash there. Yeah,
>> it's far over.
» it's far over.
>> It's small. Sorry, the font is small.
» It's small. Sorry, the font is small.
[clears throat]
» Thank you.
Um, typically we like to give updates in
terms of where the grants are at. And so
these are related to our um, operating
and capital grants. And so our our grant
um, administrator works really hard to
kind of keep on top of ensuring that we
give updates and where we're at and and
status reports to the various levels of
government. And so this just summarizes
um some of the grants that we have
applied for, whether they've been
approved um or cancelled in this case.
Um and then just kind of where we're at
in terms of how much we've received of
that grant and how much is still the
difference would be how much is still
outstanding. Um, I won't go into each
individual one, but just to kind of give
council an update that, you know, we've
been pretty successful in getting all of
our our grants um, approved at this
point. There was one small one that was
cancelled. Um, and just overall um, this
is kind of a status update and it just
carries on to to page two just because
of size. So, there's a bunch of other
various projects here that uh we've
either applied for and um couple have
been declined, but overall we're we've
been pretty successful in in getting the
majority of the grants that we've
applied for. So, which is good.
And then just like to kind of provide a
summary of some of the decisions that
have been council resolutions or that
impact reserves to the end of uh October
of 2025. I won't go through each one on
this slide, but just provides some
information about just as we keep track
and monitor all of the decisions that
have been made and the impact on our
reserves as we go into the operating uh
budget process or budget deliberation
process. We'll look at our reserves uh
where they're at and and how our
decisions like the approvals from 2025
plus what we're proposing in 2026 and
where that leaves us at the um at the
end of 2026 assuming everything was
approved and and goes as planned.
So one more question sorry
>> is a manager
» is a manager
>> that is the asset management program in
» that is the asset management program in
terms of uh looking at all of our assets
and doing uh preventative and uh
maintenance as we notice you know based
on risk condition and and risk of the
asset and just ensuring that we're
monitoring our assets closely to um
allow for kind of that automation and
efficiency of making sure we're
maintaining what needs to be maintained
when it needs to be maintained.
And that is it in terms of an update.
Thank you.
Okay, we'll call the meeting back to
order at 9:40 this morning.
>> Cole, floor is yours.
» Cole, floor is yours.
>> Good morning, council. So, welcome
» Good morning, council. So, welcome
officially to the 2026 budget um
discussion, presentation, and
deliberations. I anticipate with the
snow everybody's at home with a pot of
coffee on also joining in and listening.
So, welcome.
We'll jump right in uh to the executive
summary. One of the things that we
wanted to put at the forefront and not
bury in this document,
it's hard to believe with the 128 pages
of slides, but I think it was at 160 at
its peak. So we did uh rein it in but we
have proposed a modest 3% tax increase
uh after growth supporting core services
and uh service levels. We have a
strategic use of reserves to try and
normalize or do a better job normalizing
some of those larger cyclical
expenditures. And then a few of the
operational highlights. So we still are
catching up with rising cost pressures.
A lot of those cyclical expenditures
that occurred uh did not occur during
COVID. So, we're on the back end of
finding out what some of those true
costs are that is reflected in this
budget. We have some major um system
modernization. We have the ERP
transition to discuss digitization of
forms, long-term asset management,
planning tools, which is the phase 2
maintenance manager. And it also
reflected in this is a significant
investment in our infrastructure, roads,
bridges, water, wastewater, storm water.
So, we uh we'll get into some more of
the details. One of the reasons we
wanted to put the tax increase at the
forefront is you'll see some larger
swings in the dollar amounts and a lot
of that will come from expenditures that
happen cyclally or be transfers from
reserves and so it's just important to
contextualize that as we move through
the discussion. Just a year in review
and I know the year is not done yet but
some of the key accomplishments from
2025 included the conversion of the
point of sale system for the bulk water
stations. We collaborated with many
regional partners on storm water
drainage such as Mallaloy, the Horfly
spillway. We advanced the SRSDC
initiative uh which also ties into
Horsfly. We were the administrative lead
on the emergency management regional
partnership which is a huge
accomplishment between Barons,
Nobleford, Pitcherbute and Cohurst. We
launched a new public engagement
strategy that's the deep roots bright
future. We secured long-term fire
service agreements with Pitri, Nolford
and Cohurst uh and are at the tail end
of doing so with Coldell as well which
provides uh stability in fire services
and emergency response in the region. We
launched our multi-year phase 2
implementation of our centralized
maintenance manager system with asset
management. We've started the
digitization of our forms, my virtual
city hall uh for residents and their
ability to view bills. And then we also
completed the eastern industrial
transmission pipeline uh expanding our
aggra food production. And one of the um
more notable level of service increases
and modernization is public works
increased their base stabilization
productivity by 45% and 25.
As we look into the 2026 key priorities,
we've highlighted them here. These will
all be up for discussion as we move
through the waterfall charts and the
department budgets. Some of the key
things to to keep an eye on for those
discussions will be the ERP system
planning and implementation. We again
the multi-year
enterprise resource planning. So that's
our finance system, HR payroll. Um asset
management phase two. So that's our
maintenance manager. Uh we've tried to
call it this. I know there's been a few
phases thrown around. I think we did the
first one in three phases. This is our
big picture asset management phase two
implementation. Public operations gravel
crushing. Well, that is something we've
done historically in the past. It's
something that we're seeing uh very
escalated cost pressures on. So, we've
highlighted it here. The assessment
services transition to third party. Um
so, we'll have some overlap this year as
we transition from in-house assessment
services, council strategic plan, and
other cyclical council related
activities due to the election. and then
um our investment and growth and
engagement initiatives.
I ran through that pretty quick because
we're going to get into the meat of it
in the agenda, but any questions before
we jump into the agenda and start
getting into the department summaries?
All right,
or you could uh
There we go. Rookie mistake. Uh, good
morning, Reven Council. Uh, for the
record, my name is Justin Ellis, manager
of strategic initiatives for Lethbridge
County. I assisted the director of
corporate services, Haley, with the
preparation of the 2026 operational
budget and have been requested to
introduce the budget summary at a high
level, the revenue summary at a high
level, expenditure summary, and the
property taxes. Uh, but first, I'll run
you through the agenda that we propose
to follow today.
Uh, first I will lead you through the
budget overview. Then we'll move into
the operating budget where we'll walk
you through each of the departments.
Each of the departments has a intro
slide with a short overview uh to remind
you of what's in the department followed
by a table outlining your revenues
expenses followed by a waterfall chart
focused on the expenditures and the
differences between years in the budget
for those expenditures to tell you uh
how the how the story goes and the key
drivers for the changes. and uh some if
applicable have a follow-up slide with
the operational project description. Uh
after we've run through those, we'll
walk you through the capital budget,
infrastructure, market access, network,
vehicles, municipal reserves, info
technology, and then we'll jump back
into a summary at that time.
All right.
So, budget overview. uh this is a high
level total and and we start with
getting the big picture in mind and and
uh we'll go into the details by area and
each of the budget owners will present
their own. Uh like Cole said, we don't
want to bury the headline. In the
operating budget for 2026, there's a
proposed 3% municipal tax rate increase
for all property classes. That's after
growth. The non-residential to municipal
rate continues at a roughly 2:1 ratio
with the legislated maximum 5.1.
We're going to get into each of the
departments, but the key messages here
are that 90% of the increases in the
expenditures for this budget are
associated with gravel crushing, fire
service related costs, mostly one-time,
water purchases, operational projects,
provincial policing, and growth and
engagement. Uh we'll also make mention
throughout the presentation and we have
already about the downloading of uh
costs and grant uh from the province
decrease and grants and uh
we'll move on into the revenue summary.
So this is the summary of the revenues.
This is the cost coming in. The line at
the top is the property tax. So, what
we're looking for, your approval today,
baked in the cake, is the 21.7
million.
Uh, grants have decreased slightly. Uh,
the LG FF has reduced by about $100,000
year-over-year.
It's lower than 2025, but still higher
than 2024.
The egg service grants are the same.
They're locked in for 2025 to 2029.
Sales of goods and services have
increased mostly due to increase in in
water sales related to some of the
expansion in our acre food processing as
well as uh increase in sales to dust
control. uh uptake in the spring program
and uh level of ser potential level of
service change that uh that the director
of of uh operations will discuss with
you. Service agreements mostly stay
unchanged. Services to other
departments. So you'll see this
throughout the budget. So I wanted to
address this. Now the services to other
departments are mostly uh to do with
fleet services and IT services and what
we do is we we look at all of the
software and all the hardware and all
the TVs and all the computers and we add
all the costs of that up and then we
distribute those costs across the entire
organization mostly by mostly by per
person. uh in some cases like council
you don't have computers so we've we've
reduced the amount that we allocate to
you
and then fleet we do the same thing we
rent our fleet from ourselves so we rent
our graders from ourselves for public
operations and we rent our light
vehicles and our and yeah we rent our
light vehicles and our other equipment
for either egg services or for the the
vehicles you see in the parking lot out
there.
Fines and penalties they remain
unchanged.
returns on investment we've left as uh
we've aligned with previous budget
assumptions other revenue
unchanged and transfers from reserves.
The conversation around this will be
embedded throughout, but the main focus
here is we are drawing from our savings
account for planned life cycle equipment
purchases which uh are mostly located in
the fire services
but it they are spread out through other
services as well. And the market access
network uh can be seen at the bottom of
the screen.
This is just a a illustration to show
you visually where the money that we use
to operate the corporation's coming from
and I'll move into the expense summary.
So we are going to get into each
department later, but the key messages
here are again that 90% of increases and
expenses for this budget are associated
with gravel crushing, fire service
related costs, water purchases,
operational projects, provincial
policing and growth and engagement.
Uh salaries, wages, and benefits have
increased slightly
for cola and for merit. Uh there's some
assumptions in there for inflationary
impacts of
escalation to the benefits
contract and general services that's
increased. That's where you'll see the
up for the cyclical gravel crushing.
Now we've it's a it's a large expense.
We do it every three years, but we plan
for it. So the revenue on the other
side, you saw that we're taking money
out of the savings account to pay for
it. So
material supplies and other operating
costs, we will discuss that in further
detail later on. The services by
department remain essentially unchanged,
slightly increased for escalation.
Operating projects, uh we'll discuss
those in further detail. They're
separated out in each of the
departments. emergency service
agreements. This isn't the agreements ju
just themselves. A large part of this,
if not all of the increase is actually
due to moving money from our savings
account to pay for uh new fire equipment
that we've been planning for over the
last uh number of years.
other expenditures essentially unchange
and then transfers to reserves uh we'll
talk about later.
Again, a pie chart just to help give you
that visual of where the money we're
spending is being spent.
The last section that I'll review before
I pass the mic over to Haley is the
property taxes.
So, if the budget is approved as
proposed, it will require a 3% increase
in taxation and that's after growth. So,
a net municipal property taxes of 21.7
million this year constitutes that 3%
increase.
Net municipal property tax includes all
property taxes less requisitions of the
Alberta School Foundation, the
designated industrial properties and
Green Acres Foundation. Property taxes
are levied on properties within the
county based on an assessment value of
the property multiplied by the tax rate
approved by council each year. Property
taxes continue to be the most
significant source of revenue for the
county. In 2026 operating budget, uh
the non-residential to municipal rate
continues at a roughly 2:1 ratio,
well within the legislative maximum of 5
to1.
In addition to the property tax, but
often confused because it's all on the
same bill, the Lethridge County
collected in 2025 $7.2 million on behalf
of the Alberta School Foundation.
That's a requisition by the province. We
collect uh 27 million in provincial
designated industrial property tax
designated by the province. And $371,000
on behalf of Green Acres Foundation.
Again, those are all
added on but uh not uh not funding us.
Um
what we should mention here which also
ties into some of the pressure that
we're seeing is that the capex portion
of the 2026 local government fiscal
framework is expected to provide $2.3
million in 2026 which is slightly uh
decreased
from the $2.4 4 million we received in
2025. The opex portion. Uh
usually what we do is we we budget a
percentage of that. Uh so it's we've
we've left that to be consistent. On the
egg side of things, uh we are to receive
$244,000
each year from 2025 to 2029. And that's
split between legislative activities for
egg services and uh resource management.
These visuals based on 2025 data are
intended to help you see the county's
current assessment breakdown and the
resulting property tax revenue.
Farmland, for example, makes up 6% of
the assessment breakdown, but
contributes 23% of our property taxes.
Whereas residential assessment makes up
53% of the assessment breakdown, but
contributes 31% of the property tax
revenue. The rest remain fairly
balanced.
And this is a summary by department
showing
what's left over after the revenue comes
in and the expenses go out and each
areas
uh
each area's request for tax support.
council, for example, uh would require
$700,000 worth of tax support and public
operations.
>> Question second.
» Question second.
>> Yes.
» Yes.
>> Thank you, Mr. Chair. Um just just back
» Thank you, Mr. Chair. Um just just back
to the pie charts for the assessment
breakdown
and being that farmland's at 6%. That is
that is if I understand it correctly
largely due to the fact that farmland
assessment has been frozen for 30 odd
years. Correct. So that's the assessed
value that we're talking about.
these uh these numbers were uh provided
by our tax and assessment uh individual.
I I would have to go back and ask them
for further clarification unless Haley
has an answer.
So um as an example because the
non-residential mill rate is roughly
double the residential mill rate that's
the reason for the difference between
like the percentage of the assessment
value of the total county versus the
property tax revenue. So because the um
the non-residential is at 23 sorry
yeah and so it's contributing
um
essentially the same amount because
residential is actually like half of
their mill rate. So, it's based on kind
of the the total assessment value versus
how much each mill rate um each category
contributes their mill rate as a
percentage of one another because
they're just different, right? So,
they're not all one for one,
>> right? I understand that. I was just
» right? I understand that. I was just
making a comment about
>> Sorry, I understand that. But I was just
» Sorry, I understand that. But I was just
making a comment about the assessment.
The assessment is based on dollar value
assessment if I'm correct. Right.
>> Right. So, you know, of note, you know,
» Right. So, you know, of note, you know,
when we're talking about farmland being
such a small portion of the assessed
value, that is because the assessed
value of farmland has been frozen at an
arbitrarily low number for decades.
>> Correct. Yes.
» Correct. Yes.
>> Right.
» Right.
>> Yeah.
» Yeah.
>> Sorry.
» Sorry.
>> Oh, thank you. Thank you for the
» Oh, thank you. Thank you for the
question.
» All right. I will now turn the
presentation back over to Haley.
Okay. So, we're just going to look a
little bit in terms of the uh reserve
funding summary. Um, so there's a a
county reserve policy that specifically
kind of outlines various aspects of the
requirements within how the county
manages our reserves and the various
types of reserves that we have. Um, I
will need to bring this policy back to
council for updating just given that it
hasn't been revised since 2021. So,
there are some changes that will need to
be made um as it relates to the policy,
but this is the existing policy that we
have in place today. So, what we did was
we looked at the 2026 starting balance
assuming all of the reserve transfers
that were approved in the capital and
operating budget will be adjusted by the
end of the year. And then we looked at
kind of the ins and outs uh throughout
2026 based on what we're proposing
within the budget, which you'll see
conversations about all of those reserve
transfers throughout the discussion
today. Um which gives us an ending
balance at the end of 2026 of roughly
$34.9 million. Um the county has been
working really hard to make some
contributions to the reserves to ensure
that we have kind of future um
sufficient funding in the future to
maintain our existing assets. I realize
this looks like a significant decrease
based on what we're proposing over 2026.
One thing to keep in mind is there's um
some significant draws. uh 2026 will be
uh a gravel crushing year which is a
significant kind of operational cost
that occurs every three years. And so we
put money away each year to contribute
to the gravel crushing and then it's
drawn out kind of in in its entirety in
the year that it happens. And so that is
one aspect of this as to why the outs in
this instance are higher. And then the
other significant kind of uh draws on
the reserve for 2026 proposed is all of
the um emergency services vehicles in
terms of our transitioning out of of
capital kind of related to emergency
services. So we'll get into that more in
later on. I just kind of wanted to
highlight that because there is there is
a need and an awareness in terms of
continuing to contribute to the reserves
to ensure that we are maintaining our
assets long term.
You want to say something?
>> I have a question.
» I have a question.
>> Oh, sorry.
» Oh, sorry.
>> Thank you. So, is it still a requirement
» Thank you. So, is it still a requirement
of the provincial government to uh
maintain in reserves a balance equal to
that of your taxation for the year?
>> Um, typically that's like a best
» Um, typically that's like a best
practice. I'm not I'm not aware that it
was actually like a specific
requirement.
>> It was at one point.
» It was at one point.
>> Okay. Okay. Yeah. Um, I mean that is
» Okay. Okay. Yeah. Um, I mean that is
that is best practice in terms of
ensuring you have sufficient resources
to should kind of unanticipated things
come up and you know the ability to
maintain and sustain long-term all of
our assets within within the county. Um,
definitely.
So the next slides just summarize the
types of reserves that we have
currently, what the starting balance
would be at the uh beginning of 2026,
what some of the ins and outs are, which
you'll see throughout the discussion uh
what they relate to and just kind of
giving you the summary of the ending
balance which we talked about um as a
whole. there's some designated reserves
specific to uh local improvement and uh
frontage which have specific
requirements and so those are just um
allocated as designated reserves and
then uh we'll talk more about each of
the reserves individually as we go.
One of the things that just wanted to
highlight in terms of our debt
obligations. So the MGA, the municipal
government act specifies specific
requirements in terms of how our debt
limits are established and what that
looks like in terms of limit caps. And
so you can see the in the blue is the
total debt that we currently have based
on 2025 actuals. And then we've just
projected what that looks like uh over
the next three years. the uh brownish
colored line or bar is the total debt
limit and that's based on our total
revenue. And so that um amount
fluctuates from year to year depending
on what what that revenue item looks
like. And so, you know, we're based on
our unused debt limit, we're we're in
pretty good shape in terms of ensuring
we remain in compliance with the MGA
requirements. Uh the next slide is just
another way to look at it in terms of
our ability to meet our annual repayment
obligations which is principal and
interest and um the county continues to
kind of maintain a healthy buffer in
terms of our debt servicing versus our
debt limit which is good.
Uh this is just a summary of our
outstanding debt as of um what the
balance will be at the end of 2025 after
those final payments are made uh at
December 31st. And so this just provides
the annual payment amounts and just
demonstrating uh what that looks like in
terms of the year of maturity and and
the interest rates that were uh part of
these loan payments and loan that were
drawn.
So, what I'm going to do now if there
isn't any questions, uh, Reef Campbell
is just walk through council as, uh, one
of the examples of how what we'll see in
each department as we go through them.
Um, if we're good to kind of continue on
and dig into the each individual area.
Okay. So, each section will show um,
kind of a highle overview of the
services and programs that the
department or area provides within the
county. Um we're going to look at
council first in terms of the um
operational and kind of changes to the
proposed budget for 2026. Um this just
kind of provides a highle summary of the
department for specific areas. Obviously
council knows what council does.
[laughter]
Um and then each area will demonstrate
uh kind of a cost summary slide showing
total revenues as well as expenditures
specific to that um that area as well as
a kind of a percentage change between
the 2025 approved budget and what is
being proposed for 2026.
Um and then it's just broken down by
specific expenditure types including
wages and and benefits you know
contractual in general any kind of uh
services by other departments which is
that it or um uh fleet charges and then
just if there's any operating projects
within the area as well as any reserve
transfers. So the each each slide for
each area will look very similar to what
is presented here for council.
And then each area will have a um a a
waterfall slide in terms of just showing
kind of the ins and outs of the change
from the 2025 budget to 2026 as well as
you'll see that there's the change from
2026 to 2027 and then the change to
2028. Um and so really what we'll
probably be focusing on or most areas
we'll be focusing on is the key variance
drivers uh just summarizing some of the
highlevel differences um for each area
and what that looks like. Um so if
there's a red it's an increase if
there's a green it's a decrease um and
just demonstrating some of the overall
highle changes of what um each area is
experiencing or proposed within their
budget. So, in this instance, if we look
at 2026 to 2025, we've got some
increases in benefits for council. We've
got um some allowance for grants and uh
donation adjustments based on kind of
historical uh resolutions and approvals
by council. Um there's a 2% escalation
on kind of some of those inflationary
items uh related within the area. Um
there's an increase in the cost of the
council election cycle activities like
strategic planning and orientation just
to kind of smooth those over the
election period just to allow for a less
kind of volatility of of increases uh or
decreases depending on the year that the
within the budget cycle. Um and then we
just redistributed you'll see this
throughout in terms of the transfers to
departments. We we took a look at uh IT
charges throughout all the areas and
just kind of tried to realign. We tried
to consolidate all of the software and
various costs within IT um or related to
IT within IT. So for example, the
financial system used to be in finance
and admin and it it just kind of makes
the story more complicated at the end of
the day than you know just kind of
highlighting high level. And so some of
those changes will be reflected in that
um transfer to departments in terms of
just redistributing and and more
reasonably allocating how the IT charges
relate. So um that was a decrease for
specifically for um the for council's
area. Um and then we just wanted to look
at how we balance contributions to the
reserve over over the period to ensure
that we're you know maintaining the
appropriate funding for the necessary
initiatives and projects that happen.
And then if you look you'll see
throughout the there's a slight
escalation in 2027 and a slight
escalation in 2028. And so this will
really be the you know the overall
format and structure for each area as we
walk through and and talk about them in
more detail.
» [clears throat]
» Wonderful. We'll move into the CEO
office. I think this is important to
note. Um, I know councelor Van Essen was
excited to see this budget change and
thought you guys gave me a big raise
last term, but we have made some uh
organizational adjustments. So, the CAO
office does include um legislative
services, administration support, and
strategic initiatives. Uh, you guys know
what we do and how we do that. We've
just restructured the department a
little bit to to change that. However,
uh, we'll go through this. I would
recommend to council because I want to
go through some of the changes. Uh
however, I would recommend for some of
the preliminary discussion that we move
into a close session pursuant to ATIA
section 20 and 26. So just harmful to
personal information and
intergovernmental relations if you guys
are okay with that.
» Yes, please.
>> I'd like to move that we go to close
» I'd like to move that we go to close
action.
to
» wonderful. We'll move on to people and
culture. So, this is our human
resources, health, safety, payroll. Um
you'll see some changes in this
department similar to what we discussed
previously with internal transfers.
We've also reduced the FTE count in this
department permanently. So you'll see
that uh and then the transfers between
departments is just kind of the right
sizing of what those allocations are
similar to what you saw in council. Um
and then
we can discuss anything else but this
one's a pretty straightforward. We've
got some small software related costs or
safety related costs rather and then um
the personnel adjustments.
» Thank you. One thing that'd be kind of
handy was if we knew how many staff were
in each one of these departments. It's
kind of nice to know.
>> Yeah, we we do have an FTE sheet that we
» Yeah, we we do have an FTE sheet that we
could pull up after. Um, I don't know if
we've bucketed it by department, but
we've we've got them all consolidated to
say here's what we have, here's what's
changed over the years that we can
review at the end if you want to go
through it that way.
» When we used to do uh budgeting,
>> we'd have like if you have 10 people in
» we'd have like if you have 10 people in
your department, say like public works
or 20 or whatever the number is just at
the top of the thing, that's all.
>> Sure. Yeah, we would we would probably
» Sure. Yeah, we would we would probably
look to consolidate. We have a few
departments with only a couple staff.
Um, and so we we'll just have to
consolidate them or make sure that
they're readable in a way that it
they're not small so small that they
would share that personal information,
but rather that. But yeah, absolutely. I
think we could look at putting that in
in the future.
Any questions on
Thank you, Mr. Chair. So this one saw a
slight decrease, but that's mostly just
because of of realignment of personnel
transfers.
>> Yeah. And then a reduction in FTE, too.
» Yeah. And then a reduction in FTE, too.
Yeah.
>> Well, that's what I mean.
» Well, that's what I mean.
>> One's a personnel transfer, ones we
» One's a personnel transfer, ones we
eliminated an FTE position.
>> Oh, you Oh, okay.
» Oh, you Oh, okay.
>> Yeah.
» Yeah.
>> Okay, perfect. Thanks.
» Okay, perfect. Thanks.
>> Um, one thing I will cover, we've got
» Um, one thing I will cover, we've got
some operating projects as part of that.
Uh, so some of the corporate safety
management software for some of our core
audit recommendations and compliance was
was on there for 16,000. And then um
we've had kind of a standing 25,000 for
records management scanning that's been
going on for five or six years that we
just need to continue to do as we clean
up those old files um department files
in the basement. So we've kind of left
that on there. That work needs to
continue on as we modernize our systems
and we get that those records digitized
that need to be. But that's the only two
operating projects in that department.
Come on. that one. Everybody's favorite.
» Morning, council.
>> Let's get into this.
Okay. So, public works. Uh we'll start
with the with the big everything to do
with roads and and everything in between
from grading graveling, dust suppression
program, hall routes and signage. So
uh quick overview, couple things to
highlight. Um already mentioned earlier
is just grants are are down across the
board. Public works isn't uh immune to
that either. Um the one you will notice
is sales of goods and services. And so
this was mentioned earlier by Justin.
And so this uh uptick here is to reflect
what I will be recommending to council
as a level of service change for a fall
application for a dust suppression
program. And this would reflect um uh if
that were to be adopted um based on the
percentage of residents that may apply
to that based on some benchmarking I've
done with other jurisdictions that do
provide a site allocation. We will
discuss that further in in the
waterfall.
>> Thank you, Mr. Chair. By a fall
» Thank you, Mr. Chair. By a fall
application, you mean like a second
application? So, we have a spring
potentially a spring and a fall
application.
>> That is correct, Council Kervis. Yes.
» That is correct, Council Kervis. Yes.
>> Thank you.
» Thank you.
>> So, and so we'll discuss that further in
» So, and so we'll discuss that further in
the waterfall in great detail.
>> Um the other one as well, um you'll
» Um the other one as well, um you'll
notice on the market access network
reserve transfer a reduction there. And
so there was a an error made in 2025
where we inappropriately escalated
um that cost uh whereas that is actually
fixed cost and that debenture payment is
the $75,000. So that has been corrected
for now and moving into the future
and uh let's roll to expenditures.
» Thank you. Sorry, Ryan. I
>> Yes,
» Yes,
>> just looking at the I mean there's
» just looking at the I mean there's
obviously a significant increase in the
transfer from reserves.
>> So in the revenues standpoint.
» So in the revenues standpoint.
>> Yes. So uh thank you for that question,
» Yes. So uh thank you for that question,
councelor Kervis. So what we're looking
at there is so this is our gravel
crushing um for the 2026 season and
we'll discuss that as well. That's what
that represents.
>> Thank you. That's what I suspected. I
» Thank you. That's what I suspected. I
just kind of wanted it out there.
>> Absolutely. Yeah. So, just so you know
» Absolutely. Yeah. So, just so you know
what that number is, it's $1.2 million
by and change is what that is. And
that's for three years worth of gravel.
So, that's 300,000 tons. And that's been
a regular quite regular practice. I
think this is the third time that uh
we've crushed in that manner in that
volume. And that seems to meet our needs
in terms of uh graveling our roadways uh
in that three years. Thank you.
I thought it may be easiest probably
just to go from left to right and uh as
questions come up uh we can just address
them accordingly. So the first one here
you see personnel adjustments. So we as
a county started last year where we use
Questica uh software for our budgeting
purposes where we enter in uh everything
that really calculates in a finer detail
specifically for our staffing model by
FTE by person and there's some built-in
assumptions for our budgeting aspect and
for example assumptions that we make
where we have with our unionized staff
they have a a start rate and a job rate
and so for a conservative estimate
because we don't know where um
necessarily when we have seasonals or
casuals where they're going to land on
that scale. So, we we budget at at a job
rate because people will move to that uh
over time. The other one that that is
baked in with the Questica software for
budgeting purposes is our benefits and
benefits are quite substantially
different from if you're a single
individual versus a family. And so uh as
a default what is is baked in that
you'll see here and that's part partly
represents that increase in funding is
that it's uh at a family rate benefit
and not a single. So we have that
latitude that we're covered depending on
uh who we hire um for our casuals and
seasonals. So our permits are are are in
as permanence and fully accounted for.
The other thing that's also in this
personnel adjustment is the cost of
living and at 2% and that alone is
$60,000 uh of the $200,000 in change
that you're seeing here.
So, move next to transfers to
departments. Uh this is the ongoing
efforts that we've made um specifically
myself and and Devon with the technical
services team as we look to find
operational efficiencies and wanted to
rightsize and realign um some of the
opportunities we have to improve uh as a
county. So what this represents $50,000
of that $60,000 reduction is actually
transferred to Devon because we look at
some of our engineering services
specifically surveying and re and and
we've identified we believe as we bring
that inhouse it's a more cost-effective
way to actually provide some of those
services uh will increase sort of our
our
field work for asset management as well.
And so Deon will speak about that
further, but that's the bulk of of how
that was $50,000 that we moved over
because we're going to bring that work
inhouse, which is much more
cost-effective for those technical
services.
The transfer to departments,
we just spoke about the transfers to
reserves. Um, what this looks where this
was changed is in uh 2025
there was a $900,000
um
reserve commitment and uh we've then
Haley's mentioned this as we're looking
in our reserve trying to rightsize where
some of these are that make sense
operationally. So that $900,000
doesn't sit here uh any any longer, but
we've right sized on the reserves, but
also we've moved what was sitting in
technical services, a $500,000 land
reserve. And so it kind of one went down
and we backfilled it. Cole, if you want
to speak to that more on the reason.
>> Yeah, we just that I think for yours we
» Yeah, we just that I think for yours we
moved. So that's the total transfers to
reserves. the the land the land
transfers we moved to infrastructure
did we not it sits in the infrastructure
department now
so so you're seeing a reduction here by
that amount it's really it's that
doesn't mean the whole budget reflects
that we've changed that we've moved that
to another department to keep the
transfers to reserves more specific to
public works here and the capital
expenditure piece in the infrastructure
department so that's really what that
one is and we'll speak to the size and
scale of those changes in that
department budget
The other one you'll note on all of the
all of the departments I'll present will
have the same one. The main theme for a
lot of these is actually realignment as
we've looked operationally how best to
um where things should should sit and so
that's where that one lands. U I will
lump together escalation it costs fleet
and the budget adjustments as again that
realignment work that we've done
internally. Um, and as has been
mentioned as Justin in the overview
earlier,
contingency uh Cole mentioned that
historically the contingency fund sat
within the CEO's office and uh so public
operations will hold that $50,000
contingency. It really is a break glass.
Unexpected,
you know, emergencies where we may not
have time to react or to come back to
council if we need some additional
funding to address any issues. So, it
really is that break glass only.
And then we got that big red line of uh
1.8 million. So, this is gravel
crushing. So, let's get into what this
looks like and how this works. So,
historically, we have crushed gravel
every three years. And to meet that um
payment obligation, we have put money
aside three years in advance in a
reserve and then we pull that when we do
the crush. And so currently um if you've
been out at the rackis pit we're
crossing currently that is for our
expenditure in 2026 which will support
our 2026 20278 2027 and 2028 graveling
season and that's uh $1.2 million. Now,
as we do that work, uh we put that out
to RFP and in that process this year, we
saw basically three groups of pricing
and uh we were very fortunate with where
we landed at at the the lowest price. It
was a vendor that we had used
historically. So, we're very confident
that low price. Sometimes there's some
you can be a little bit scary if you
take the lowest price and it there's a
big gap. You might you might get what
you pay for there which is poor quality.
Um
but it was this group here, the low end,
there was a middle group and then there
was a top group. And so as we looked at
that and we looked to project when we're
going to crush again in three years,
what are we going to actually end up
having to pay and make sure that we put
enough money in our reserves aside for
that for the next three years so that
we're not short or scrambling because
it's such a a core piece of our
operations to gravel our roads is uh
that's why you're seeing uh it's a 50%
increase is what we anticipate. And how
we got to that number was the bottom
value of our RFP on the top group. And
so we may be a little high, but we're
definitely not the highest. So it's it's
kind of mid-range um and talking to
other colleagues and and uh
municipalities within the region um for
what they're paying. Uh I believe we're
we're on track and confident that that
will put us uh on par so that we have
sufficient reserve monies for for a
gravel crush. So that's where you're
seeing there's a $1.2 million for the
actual crush and then a $600,000 reserve
payment that we will make for the next
three years to crush again in the
future. But that is a substantial
increase in cost.
» Thank you, Mr. Chair. So, do we have our
own crusher then or do you rent one of
those? Like do
>> Thank you, uh, councelor SL for the
» Thank you, uh, councelor SL for the
question. We do not. We do contract out
crushing services.
Correct. We do own the pit which is a
substantial savings for us. Um,
comparatively for the cost of gravel
after crushing versus if you were to
purchase gravel from another producer,
it's substantial savings to do that work
inhouse.
Thank you, Mr. Chair. And yeah, since
we're on gravel, uh, in on some pits,
uh, you have to put away, uh,
reclamation.
Um, I forget what it's called, uh, does
that show up in any of our financials
that we've put that away or is are we
exempt from that somehow?
>> No. Yeah. Uh, thank you, uh, councelor
» No. Yeah. Uh, thank you, uh, councelor
Vaness, you're correct. We do have to uh
have some funding put aside for
reclamation activities. I believe it was
in the reserve. We could pull that up. I
think it's around $60,000 or 50 or
$60,000 that we do have aside right now
in the reserves. And we we do ongoing
management of our pits. Uh Graeme White
who's uh our manager on the technical
services uh is fantastic with
maintaining our compliance with pit
management. there's a lot of regulations
and so we do work um every year on our
pits to maintain. So thank you.
Yeah, just in regards to that, I think
if I'm not mistaken, I've been involved
in previous conversations where all of
our assets actually we have we have to
set aside reserve funds for for retiring
those including like our landfills, the
building, um any any of in all of that
is that that would be accurate if I'm
not mistaken. Right.
>> I can't speak to all of our assets, but
» I can't speak to all of our assets, but
I can speak to one that you mentioned.
We do have an asset retirement
obligation for like the landfills, the
waste transfer sites um with reclamation
activities related to that and we do
hold reserves um keeping in mind of when
you have to turn those back or when
those assets are retired. So we're and
that we review on a regular basis
because uh regulations change and so
sometimes those regulation changes could
incur additional expenses that right now
are may not be planned for entirely.
>> Perfect. Thanks. I know it wasn't really
» Perfect. Thanks. I know it wasn't really
on topic
not worth mentioning.
» Thank you. So this going back to the
reclamation of the pit. Yes. ask you put
aside 60,000 every year or because
60,000 seems fairly low to reclaim
something like that size.
>> Thank Yeah, thank you councelor Hickeyi.
» Thank Yeah, thank you councelor Hickeyi.
We do not the $60,000 and that I
reference is what currently sits in that
reserve and uh we review that on a
regular basis based on what we believe
the cost of reclamation would be. And so
there's no additional contributions
planned at this time.
Um so during the year end process which
uh involves our audit review they we
have to look at all of our future
obligations like if uh a landfill or a
as an example or in this case a gravel
pit and so we review what the future
obligation will be of that asset and it
is adjusted for in each year end and
reviewed as well. So there's there's a
lot of you know we obviously rely on our
subject matter experts to help us kind
of understand what that end uh end
requirement or obligation will be. So
that's reviewed regularly as part of
that process and we adjust in our
financial statements to show those
obligations.
So then to maybe on Lauren's point just
asking like the what the actual cost the
estimated cost might be at the end of
life of that pit to reclaim it. Then are
you suggesting then that like that work
that Graham is doing in in the interimm
is to to help mitigate those that big
spike at the end. Is that the idea or is
is that 50 to 60 what you feel
comfortable would be the cost or I'm
assuming there's a correlation there.
>> Yeah thank you uh brief Campbell. So, we
» Yeah thank you uh brief Campbell. So, we
believe where we're at right now because
we do review our aerial obligations
annually that the that the $60,000 would
cover those costs if we were to divest
of that pit. Uh there's twofold to that
question as well to answering your
question is there are regular there are
annual regulatory requirements with our
pit maintenance and management that we
conduct in house and perform and and
Graeme keeps us on track with that and
compliant. Uh we've had success with
closing other pits in the county uh when
they've been reclaimed and
they look amazing. So I'm very confident
where we're at with our current dollar
value as well as uh procedurally that we
can execute that properly when the time
comes for the county.
Okay, I'd like to uh move to the next uh
line. So highlighted as fall dust
control alluded to that one earlier
under additional sales. The $300,000
that's represented here would be the
cost for the actual product. So MG30 is
where we have currently have a contract.
I maybe I should mention that that in
2025 we did go uh we did submit an RFP
which has not been done historically for
products like this uh by the county and
we're successful. We're very happy with
with that because it actually lowered uh
our cost from our 2024 cost for 2025.
It's a three-year contract 2026 and
2027. Um I know we're only talking cents
per liter, but when you're using
millions of liters, it does add up and
and we're happy that we're able to do
that and we'll roll that forward. Now,
with that said, the estimate here of
$300,000,
this is the assumption uh based on
talking to other jurisdictions that
offer a second application or a fall
application for dust suppression that
60% of current residents who
have a first who pay for a first
application would also pay for a second
application. So, that's where the
300,000 uh comes from. And it is a best
guess. uh our our neighbor to the east
of us, the MD of Taver, has offered a uh
that level of service with second
application and their uptake is 60 to
70% of those that get a first
application also pay for a a second
application. So from a planning
perspective, that's where we landed to
bring that in here. of note on that is
we would not expense uh we wouldn't
purchase that product unless it's
actually that service is purchased by
end users. So on on that end if council
did not decide to change the level of
service and offer a fall application it
actually wouldn't have uh direct impacts
to our overall budget. Um the only
impact would be is the opportunity cost
with our crews. Uh doing uh dust
suppression for what we're looking at
now is probably 10 operational days for
the spring and 10 operational days for
the fall. So
that aligns with where we've been
historically as well.
» Mr. Sure. Um
I'm assuming that if we if we opted to
change the level of service on that and
and approved this and we didn't get the
uptake, this is product that is
something that could sit over the winter
and be utilized in the spring if if we
didn't utilize all of it.
>> Okay. Thank you, Councelor Kervis, for
» Okay. Thank you, Councelor Kervis, for
your question. We would not purchase the
product and no, we cannot store uh MG30
over the winter. It's not something that
we we have a contracted rate. We buy it
by truck. Uh the truckloads are 35,000
liters per truck and it is a real time
delivery and and use. We store very
little of it and definitely not over
winter.
>> Okay. So we would only expand what we
» Okay. So we would only expand what we
needed.
>> That is correct. That is correct. And we
» That is correct. That is correct. And we
don't have with our RFB we have some
volume metrics of uh based on our
historical use of the product. But there
would be no risk of
um us not
using this volume of MG30 at all.
» Yeah. So, well, the entire obviously
budget is councils and the level of
service. This is a I think this is a a
bigger decision than just saying, hey,
it's an in-n-out. There's not a
budgetary impact from an opportunity
cost. I know council knows this, but I
think it I would be remiss not saying
it. Um, one of the biggest complaints we
get is around our dust suppression
program to the point where I it's an
expectation challenge and it's a
constant tug-of-war for us and for
operations where it's almost on one hand
the assumption is is that dust
suppression is dust elimination without
the recognizing you know without
recognizing that there are factors
outside of our control inclement weather
rainfall um and then the intensity of
those operations. There's differences in
dust suppression between the hall roads
and the gravel roads and how we treat
and maintain those. And so, you know, a
lot of people that get the dust
suppression, they're fine with the road
deteriorating to a point. And and the
feedback we get as well, they drive
slower if if the roads beat up. And
we've been reluctant until the last few
years until Brian and and I I have to
commend him because it's not the popular
thing, but it is the right thing to say
that road condition is deteriorated to a
point it needs to be maintained. We are
grading through this. We are grading
through this road. we are making sure
that they meet our standards and our
level of service. Um versus grading
here, lifting your blade, stopping and
then grading 200 meters down down the
line and then leaving that section. And
so I think we've really struggled with
what to bring forward to council for a
couple reasons because I go back and
forth between get rid of the program,
nobody likes the program, then then
don't do it at all and the opportunity
cost for us to go and maintain those
roads is significantly greater. I don't
think that's the right answer per se.
Um, but if we're going to keep the
program, we also are going to have to
maintain those sections and there's an
expectation and we'll be very clear.
Your road might get graded through, your
dust suppression might get graded
through. Now, multi-year applications
have proven to hold up with that
maintenance activity, but I think this
is something that we need to this is
this is one of the key decisions in this
budget for council to decide on what
they want that level of service to be
because I think it is an inflection
point of how we're going to set those
expectations and how we're going to
proceed. Is that fair, Ryan?
>> Yeah, I I appreciate that.
» Yeah, I I appreciate that.
>> I might add as well, so in the 2025
» I might add as well, so in the 2025
season, as part of our RFP, we had asked
vendors to propose other uh dust
suppression products. And so we did
trial one product. It was an oilbased
product and it did not perform any
better than what we currently use with
the MG30, but it was four times the
cost. And so in addition to that trial,
we also did a compaction study. So we're
looking at um how compaction relates to
the overall efficacy of MG30 over time.
And again, the results of that as well
showed that compaction at the highest
[snorts] point had nominal additional
benefit. And so based on those uh bas
based on the compaction studies, we're
looking that we're going to change how
we actually put our application for MJ30
as well. And there's some operational
cost savings uh in in doing that. We're
looking as well for that for our 2026
season which will also make us more
efficient for the application.
>> Ryan, on on that note, I assume you're
» Ryan, on on that note, I assume you're
talking about packing,
>> correct?
» correct?
>> So, when you say um the overall quality,
» So, when you say um the overall quality,
are you talking about the uh condition
of the road or the ability to suppress
dust or is there a correlation there?
Like if the road was packed, is there a
maybe a a surface quality enhancement
but maybe not a dust control enhancement
or how would you Yeah.
>> How would you frame that?
» How would you frame that?
>> Yeah, thank you Ree Camp for the
» Yeah, thank you Ree Camp for the
question. So it is it is twofold. Uh
Devon can jump in any time on this as
well because he him and his team managed
with the engineering. So we had a third
party uh do the compaction studies. Um
the drivability certainly is improved
with compaction, but the sustainability
of that drivability is nominal compared
to if you were to just compact the or
have it uh traffic packed uh over time
in those sections. From a dust
suppression, there is little to no
difference if we pack it versus if we
don't at the time of application. What
we saw from the compaction study, the
biggest value is if you have residual
already in the road of MG30, those areas
hold up the best for both drivability
as well as a dust suppression. Devon,
anything more to add on that?
>> No, I think you uh described it well,
» No, I think you uh described it well,
Ryan. I think with the pardon
[clears throat] me with the test section
that we did um there was really a
negligible difference between compacted
and uncompacted
[clears throat and cough] excuse me and
a strategy that we do on site is when
those loaded MG30 trucks are coming down
those sections we'll stagger them as
they come down those completed sections
to provide that little bit of compaction
and get it to a state where it is a nice
smooth surface. Um but what we saw we
did we did three section one was 100%
compaction one was half and one was zero
and performance-wise there was no there
was very very little difference if no
difference at all um I believe other
municipalities do not do compaction
either and they found uh success in in
uh doing it that way
» so like as Cole mentioned this would be
the one decision point for council um
with this uh change above service.
>> Ryan, may I also Yeah. On I know we've
» Ryan, may I also Yeah. On I know we've
talked in the past about this being a a
subsidized program. I think that's a bit
of a loaded term. Could you maybe speak
to that a little bit and just how that's
been approached and if there is I I
would like to have that discussion
anyways how we move forward. I think
that the second application is part of
the discussion, but I also think how we
approach that from a funding.
>> I'm I uh Thank you.
» I'm I uh Thank you.
>> You're wrong. Reed Campbell for that
» You're wrong. Reed Campbell for that
question.
I I would I would recommend that we move
to a closed session
under inter municipal relations section
26.
I don't know if there's I mean we can
talk about the
um maybe before we do that I think the
one thing that we will um I how we've
collected revenue and how we've
accounted for it has been challenging
and I think the percentage anchor has
been um somewhat misleading to say it's
50/50 but what we have not accounted for
are the the equipment the salaries so we
look at the the cost of the MG30 which
is part of it and so I know we've looked
across jurisdictions and That's probably
what Brian wants to talk about here and
we can move into that on how they've
approached that. But I think for the
public section of this, it is it is
subsidized but probably not to the
degree that we've historically thought.
However, we haven't broken out some of
those numbers because it's not how we do
our budgeting. So to know what some of
those labor hours are, what the
equipment costs are, what that piece is.
And then the secondary conversation to
that is the opportunity cost. If that's
20 days of teams applying dust
suppression, that is 20 days of us not
doing something else. And so I think
that that's the secondary point to the
subsidy piece. But um I know that Ryan's
done a lot of research on this, talked
to other jurisdictions on how they've
approached it. And and with that being
their business, that probably is a
conversation for close session.
» Thank you, Mr. Chair. Yeah. Um, I think
we should uh really get to the the bones
of this. So, motion to move to close
session. Thank you, Eric. Eric, move to
move into a close
yours, right?
>> So, any further discussions on
» So, any further discussions on
uh level of service change for uh second
application for dust suppression within
the county?
Go ahead.
>> Yeah, thank you, Mr. Chair. Um, yes, uh,
» Yeah, thank you, Mr. Chair. Um, yes, uh,
discussion on a second second
application. This is a new concept and,
uh, I'd like it to be fleshed out a
little bit of what it would look like
for us to go ahead with that.
>> Okay. Thank you, councelor, for your
» Okay. Thank you, councelor, for your
question. I I'm not sure if it's a new
concept for the county. I'd have to
defer to Devon if the county has done
this in the past. I don't believe so.
>> So, Uh I'm not sure what year we we
» So, Uh I'm not sure what year we we
switched to one application. Maybe
councelor Hickeyi would recall, but we
did do two applications quite a few
years ago and then um moved to that
single application. I don't have the
background as to why that occurred. Um
but I do know when I started at the
county there was two there was a spring
and a fall application and perhaps
councelor Hickeyi may have more
information on that.
>> I I don't I don't think it was a fall.
» I I don't I don't think it was a fall.
Like if you got it in say May, they
would come back in July and top it up.
like you got two leaders to start and
you got another leader in July because
it wasn't quite up to par. But I I don't
remember them doing anything in the
fall.
So maybe I need to clarify in when I say
the fall, what we would look at
targeting to mirror other jurisdictions
that do have a second application would
be probably about middle to end of
August so that you can really hit the
harvest uh to try to get the greatest
value out of actually having a dust
suppression application.
So what you end up with is your spring
application.
If we were to get 90 days of good dust
suppression out of the product, you've
won the lottery. You're doing very well
because the product is not designed for
heavy hauling. And we could apply the
product and you could do a manure hall
two days later and it is completely
gone. It is beat right out of the road.
Um, so we would look at basically three
months windows where we do our initial
application in May and then circle back
basically three months later in August
to do the fall or the August application
and try to get through that harvest
season. So it really mirrors your busy
spring season for some producers and
then tries to balance with what they're
looking for from a a service delivery
for harvest and silage.
Thank you, Mr. Chair. Um, so basically,
if we decided to move forward with this,
this would still be based on a voluntary
um program where anybody that wanted to
sign up to it, they could sign up to one
application or two applications. Uh,
would they be able to just sign up to a
fall application if they chose or I
guess that's probably getting into too
much detail. Well, I don't need to know
that. Never mind.
But it would be fully voluntary then,
right?
>> That that is correct, Councelor Kervis.
» That that is correct, Councelor Kervis.
This is this is a user pay service that
the county provides uh for
residents.
» Thank you, Mr. Chair. Uh my chief
complaints come in is it's either it's
too late. Spring or spring early summer
silaging is already happening. So if you
can if we can target that May, getting
it all done in May. Um that would make a
lot of people really happy uh because by
mid to end of June there's silitine
happening. Um and then yeah second
application I I think that already early
August from our area we could start to
see a great need for it by then as well.
Um, I'd like to see as council to see if
we're
or I guess more if you would put the
proposal out there what a second
application if we're going to be having
to up our price or if it's something we
could look at including it as a
increased um
level of service for our our rate
payers.
>> Okay.
» Okay.
>> Yeah. Thank you, Mr. Chair. Maybe
» Yeah. Thank you, Mr. Chair. Maybe
through the chair to councelor Vaness. I
just need to clarify that question. Are
you So, we do have to make the decision
now because the applications need to
account for that for securing material
costs. We need to update the forms for
purchasing so we can get those quantity
volumes here in the new year. Are you is
your question and and request for a
proposal in subsidizing the second
application or is it like what what
specifically information are you looking
for as part of that program?
>> Yeah, thank you there. Um,
» Yeah, thank you there. Um,
I think we our second application is a
is a lighter amount typically
historically. Uh, I'd like to see what
it would take for us to include it as in
included level of service as a second
application more or less like
historically what we used to do that uh,
hey, it's two applications. The rate of
unhappy residents with it, as we
mentioned earlier, it's our biggest
complaint. Um, I think we got one kick
at making this better or I'm I'm
prepared to move towards like
discontinuing
uh just the amount of problems with it
or problems. That's a stretch. Uh
complaints. Um yes, we can talk about
expectation that it's suppression. It's
not um gone. But long story short, I'd
like to see if it's possible in our
budget to include the second application
in their purchase price.
And that's up for council to chat about
as well.
>> We can maybe what we're we put that as a
» We can maybe what we're we put that as a
parking lot item um on the board can
have Haley look and pull what that total
is. But my initial assumption is that's
a seven figure ask. So anything's
possible whatever council wants to do,
but that's not going to be a small
number. But we'll pull what that total
dust suppression program is. And I think
we can make some general assumptions
right now to quantify that to even say
is that a 67% of cost of that between
what we're spending today if if we're
saying that's truly included in that
original purchase price. But we'll pull
that information and come back to it.
Does that work?
>> Thank you,
» Ryan.
So what's what is the number that is in
the budget right now and the the budget
change
>> is are we then
» is are we then
>> I guess on Eric's question are we
» I guess on Eric's question are we
assuming that if application our current
practice of one application is X moving
forward it would be the cost would be 2X
then is that what we're what are we
proposing right now I'm a little
confused sorry
>> yeah so the second application would be
» yeah so the second application would be
fully paid for by the resident so this
waterfall shows the expenditure side on
the 300,000 but we the assumption is
that we're collecting whatever that
amount is because this is assuming that
that's 300,000. It could be five, it
could be two. Um, but we need to know if
we're offering it. Whatever it is, they
would be paying for that second
application. So, changing the number the
way the budget's presented does not
change the tax support in this proposal
based on councelor Van Essen's
>> request that that would in turn take the
» request that that would in turn take the
revenue side off of that and then that
would be a different conversation.
>> Yeah. What the 300,000 represents is if
» Yeah. What the 300,000 represents is if
60% of current
uh individuals that have a first
application were to choose to pay for a
second application. It was an estimate
based on numbers from the NDA table
where they have 60 to 70% of their
residents that do uh purchase uh a
second application. But yeah, this was
very much uh a pay as you play is my
original proposal.
>> Thank you. So what do you think the
» Thank you. So what do you think the
demand would be? Do you think that half
the people who have it done now would
want a fall application or you got any
idea?
>> 60% Lauren is is what that number
» 60% Lauren is is what that number
represents. 6.
>> Okay.
» Okay.
>> So yeah, in the MD of Taber it's 60 to
» So yeah, in the MD of Taber it's 60 to
70% of those who have a first
application
purchase a second application is that's
been their historical uh uptake from
residents. So that's what we've No,
that's fine.
» Uh, thank you, Mr. Chair. Um, so would
that be um at the initial time of a
person doing an application for it then
to make the request for a second
application or would that be a separate?
>> We would have to because we have to
» We would have to because we have to
secure the material.
>> Okay. Thank you. Yeah. Yeah. Thank you,
» Okay. Thank you. Yeah. Yeah. Thank you,
Council Ac. What we would do is we'd
we'd open it up, but it would be a
separate application for a fall.
You'd you'd apply for it just like you
apply for the first one. You'd apply for
a second and upon receiving payment,
then we would schedule that in and do
the work.
So, there's some assumptions
built into this because I think if we
were offering a second application, I
could see a greater degree of resident
uptake because the value obviously would
be there if it was subsidized. uh be
different value proposition. We spent
about 500,000 last year um just shy of
500,000 just on the resident um
residential portion of that dust control
uh application. That doesn't count a
second application on any of our general
county, which I think would also be a
consideration if we're doing that and
saying, "Hey, we're doing it here to do
it there." That's another 400,000. So,
it would be somewhere it would be about
500,000 to to include that plus and I
because again I think we would have a
higher uptake probably um if we were
doing a second application.
Yeah. So certainly we can go back we'll
reook at what that would look like in
terms of costing and and rework all
those numbers. We do have the data. We
can use the historical data to
re-engineer what the projections would
be with some assumptions that we fully
disclose.
>> Thank you, Mr. Chair. So, would that
» Thank you, Mr. Chair. So, would that
then in turn take another, let's say, 20
days of your guys's manpower to have to
go do this all again? Well, do you have
the time? Do they have the time for
that?
>> Yeah. So,
» Yeah. So,
thank you, Councelor Slump, for that
question. in terms of opportunity costs
and and crew structure. So with uh the
work we did with our compaction trial,
we are looking to change um our our
layown. It's called a we would do it as
a top shot. We'd actually incorporate
our divisional graders that are already
in certain in in geographic areas within
the county and uh through that there is
a quite a significant um operational
cost savings as well as time. Um, so
I've challenged the team to move from
what was a 23-day
um, application for the 2025 season to
cut that in half being that we we we
would target 10 days for the spring and
then 10 days for the fall. So would be a
wash. But again, uh if this program
if it's covered or subsidized in
differently from the county would
probably anticipate greater uptake uh
which
that we would have to address that um
based on you know how many linear meters
that we need to apply. So there's
certainly a risk there if there's a
dramatic up increase of what am I not
now doing because we're doing additional
dust suppression applications throughout
the county.
>> Currently um the actual phys physical
» Currently um the actual phys physical
application of the product is is by a
contractor. Is that correct? It's not
our actual apparatus that is applying
the the product. Is that correct or that
that is correct? So it's it's it's
through our RFP. Uh we do have a spray
it's called Kansas Ridge
Kansas Ridge for our spray trucks.
>> It's Kansas Ridge. Yeah, it is it is we
» It's Kansas Ridge. Yeah, it is it is we
have a rate for the application for the
top shot that's part of our FP on on the
rate.
>> Does does having having a vendor provide
» Does does having having a vendor provide
that service does it uh is that a
constraint on our ability as to when we
can apply it? If I think you know where
I'm going, but
If the pro if we were to drastically
increase the number of miles, does that
have a different discussion on a from a
capital perspective and are we able to
administer this program entirely
internally? And I realize there's
obviously a huge budget impact to that,
but when I think to Eric's point, when
we talk about time, I think that is one
of my concerns as well is I I see it in
the spring where it's especially with
weather, we're late. And and I think
August, the last three out of five
years, we've been combining the last
week of July, first week of August. So I
I know that's not the same for
everywhere, but if we're combining, that
probably means someone else is silaging.
And so I I do have
>> our ability to get that down timely is
» our ability to get that down timely is
also important. So I I guess Yeah.
Sorry.
>> No, appreciate the the clarification,
» No, appreciate the the clarification,
uh, Reef Campbell. So, we did reach out
and talk to our vendor for the
application, and they're confident that
they would be able to support us if we
were to proceed with a with a fall
application or whatever we're going to
call that now, if that's the decision in
council. Um, and because the operational
changes that we're looking to make, we
can we can do a lot more roads, a lot
more miles. um
in the same period of time.
Okay. All right. We'll move on. Um where
are we at? Line painting. Uh line
painting is an activity that uh we do
every two years. And so you'll see with
a 26 27 28 you'll see and uh in and out
as we do put a reserve um amount uh
aside to do our line painting every two
years. That's the 124 and the 124 and
and 27 and 28. Uh slight increase uh for
those services is that's a a contracted
out service that we we purchase.
Um also of note um
in 2027
yeah uh already spoke about the reserve
differences and that realignment that
we're doing uh as a whole.
The one that I didn't
speak to already is operating projects.
So in the 2026 the $34,000. And so the
next slide uh has detail on those
operating projects and we can go over
those in detail if there's no further
questions from this slide.
» So
uh typically operational projects are
you know one time uh same year uh
projects. All of these represented here
are one-time funding requests uh
totaling $34,000 except for the top
line. Uh this line of $120,000.
This is for a deepbased stabilized road
treatment trial. Uh this would be 2026
would be year one
uh of what I propose as a 5-year trial.
Uh what deepbased stabilization is is it
is uh goes 6 to 12 inches uh with a
reclaimer. Uh this would be a contracted
service that we're we would work with a
vendor on doing and they come in and
they infuse MG30
uh much deeper than our current process
with our current mail raiser which is
only about two or three inches. So,
we've reviewed other roads uh in
northern Alberta as well as there's a
stretcher road by riding on stone that
they installed uh using this technique 5
years ago and it has dramatically
reduced um ongoing maintenance costs. Um
and so it is something that we believe
is something that we would like to look
at trially um over the next five years.
So that's the big that's the big ticket
item here. Um we've identified some
roads uh that we would do for 2026 and
then for the preceding years.
Just because we do this or invest in
this trial for the first year, it
doesn't mean that we actually know if
this is a proof of concept in year one.
In fact, it's going to be minimum best
case scenario would be three years. And
so that's why I've proposed a fiveyear
commitment.
um that we invest in this unless unless
after the first year if this is a
complete fail and has no value at all
then obviously we would not invest but
really we won't know if if it will
reduce our maintenance cost long term
meaning after 3 years or after five
years until we actually are at that
point and so
any questions there's a there's a whole
I have a whole project proposal on this
particular um trial
>> yeah thank you Mr. chair, subject to it
» yeah thank you Mr. chair, subject to it
being successful, what would how many
years does it have to hold up to have
give us a payback?
>> Okay, thank you uh councelor Vanessa for
» Okay, thank you uh councelor Vanessa for
that question. Based on our current cost
for what we our maintenance cost for a
single mile of hall route priority one
road where we infuse MG30 annually, it
would need to be three years.
» I I nothing is zero maintenance. It's a
gravel road, but significantly reduce
maintenance costs.
But it would, that's why I said a
minimum three years to see if this is
something that has greater uh value
added than our current process with with
our haw routes with the meal raising in
injected roads that we do.
>> Thank you, Mr. Chair. Just a
» Thank you, Mr. Chair. Just a
clarification. And so the $120,000 is
that per year for the next five years or
is that 120 cover the five years of the
program?
>> That is Thank you, uh, Councelor Sarah
» That is Thank you, uh, Councelor Sarah
for that question. And sorry if I it was
confusing there. That's $120,000 per
year for five years. So what we're
looking at now is is a $60,000
a mile is what that works out to. Now, I
am working with uh our neighbors to the
east of us uh that have also done some
roads. Uh county of 40 mile actually has
used this uh quite a bit. Um deep base
stabilization has had a lot of success
with it, but since they've done that,
they've now paved on top of those roads.
So, I can't really see what their
results were, but they were very happy
with it, but I haven't seen their
sections. Um, but I am I'm hoping that
other jurisdictions if we can bundle
more mileage for this vendor when they
come down, there's opportunity to re
reduce the the mobilization costs that
we would incur with only doing a couple
miles.
» Thank you. So, just out of curiosity,
what's the difference between defas
stabilization and cement stabilization?
like I is there is there a big
difference or how does it
>> I'm I'm I'm gonna have Devon jump in
» I'm I'm I'm gonna have Devon jump in
because I'm losing my voice and I need
to grab a drink.
>> So great question that that deep base
» So great question that that deep base
stabilization would essentially take a
gravel road or a base stabilized road
and inject that MG30 6 to 12 in down and
stabilize it further than the 4-in
gravel mat we're currently doing. Cement
stabilization is your mixing cement
powder into that 12 inches and it's
creating a much harder and much more
durable surface than you then put that
uh double chip seal on top of which gets
you more to a level of service compared
to a paved road. Not quite there, but
it's more of a paved road level of
service compared to this uh deep base
stabilization. um that cement
stabilization has a lot longer life
cycle as well than the uh MG30 base uh
stabilization, but the cost is also
exponentially higher. So um this program
is kind of I would say an in between
between our kind of what Ryan is
currently doing with our base
stabilization and that cement
stabilization standard.
>> Thank you.
» Thank you.
>> Yeah. So, um I think that's actually a
» Yeah. So, um I think that's actually a
perfect segue to the conversation too
and and we didn't include this in the
budget because we don't have it fleshed
out enough and I know at is doing some
projects that they've approached us that
may make sense for us to piggyback and
so we've talked about trying to trial
these. We need to do something different
with our base stabilized roads and and
I'm not an expert but Ryan and Devin and
the teams have been doing a ton of work.
This is and I'm going to steal Ryan's
language. This is one horse in the race.
I think cement stabilized is another
horse that we need to put in the race
and we need to start doing this now so
that we can make some of those key
decisions as we gather more information.
So while it's not in here, something
that we want to put together and work on
um for one of the projects that might
come out of out of those reserves once
we have more information on what that
scope and scale is is doing a trial of
cement stabilization on a similar
segment of road. All the more reason
that we need like the armadillos in here
for the traffic counts and adding some
of that information so that we can
actually assess the wear and tear on
these on these investments because
cement stabilization dev a mile we
estimated was it 600,000
>> 800 with the chip seal. So, so we're
» 800 with the chip seal. So, so we're
talking 60,000 here versus the 800,000
there, which great, maybe that ROI is
there, but we need to start making some
of these key investments without going
out and saying, "Hey, we're going to do
a bunch of miles. Let's start doing some
test, some test sites. Um, do them on
similar segments. We know they're going
to wear and tear. We know weather's
going to be similar." We'll get that
data and and then at least there's more
information for council to make some of
those long-term decisions.
Thank [clears throat] you, Mr. Chair.
So, when you're talking about the the
return on that, and thank you very much
for that, Cole, because that segus right
into what I was going to ask going about
a if it lasts for three years, then then
we've got our return off of it. So, I
mean, ultimately, what we want to see
this is to last significantly longer
than three years because three years is
kind of like if it's less than three
years, we've lost money on it. It's
three years, it's a break even point. it
it really the the goal on this is to
find something that is going to give us
a return as opposed to just paying us
back for for our efforts. And so if I'm
correct in that assumption then three
years is kind of the anything past three
years we're into the gravy then.
>> Yeah. Thank you councelor Kervis for
» Yeah. Thank you councelor Kervis for
your comment. You're correct. That's as
I mentioned earlier the three years
would be a break even point based on our
current base stabilized um cost to to
maintain those roads. I I do need to
note that why I've u looking at a
five-year trial and doing two miles per
year um because we're going to look at
different types of roads with different
traffic. So for some areas a less
traveled road that may have a um reduced
speed limit on it. It doesn't have
agriculture
um implements that are used on it. I can
think of a number of those where we're
quite certain that we could get five
years plus and that would be actually
very good value uh for a dollar in those
roads. So not all sections of road are
equal but what we don't know is how this
will stand up uh compared to our current
hall routes um with the high intensity
that we continue to see and that
intensity will only continue to grow
during the life of this project. And so,
as Cole mentioned, one of the asks here
is also purchasing some additional
traffic count, automated traffic
counting pieces, which is a a core
element that we build into our asset
management platform, and we can track
and trend year-over-year because that
does dramatic directly tie to uh road
condition and and road views.
» Thank you, Mr. Chair. Um, in regards to
the stabilization like Cole was saying,
it'd be nice to start seeing that on,
you know, your priority one hall route,
stuff like that. But cuz I know the
stuff that you guys did on old highway
there by no for by the 519 that has done
very good, but it also doesn't get the
traffic that a hall route would, right?
Like the big semis and stuff. I'm just
curious how that would hold up if that
was something that we could start
looking at doing is doing that cement
stabilization through the priority ones
because that cut down a lot of cost too
right cost a lot in the beginning but
>> you want to speak to that Deon just the
» you want to speak to that Deon just the
timing [clears throat]
with that
>> so that's it's absolutely something
» so that's it's absolutely something
we're looking at um we need to establish
[laughter] uh essentially what our
maintenance requirements are on some of
those roadways that are we're spending
more time on and does that ROI make ROI
makes sense to go to a cement stabilized
uh standard. Some cases it may, some
cases it may not. In some cases that
deep base stabilized standard may be may
be the answer. So um don't have the
answer for you today, but something
we've talked about extensively in
looking at some of those haw routes and
perhaps if that ROI makes sense bringing
that forward for council's
consideration.
>> Yeah, thanks Kevin. I think one point is
» Yeah, thanks Kevin. I think one point is
to be prepared that if we do make an
investment and it doesn't meet our
expectations that we have to be prepared
to call it what it is. If it's a fail,
it's a fail, but we need more horses in
the race. Uh but we need to try
different products that other
jurisdictions have had success with. We
just don't know in our conditions how
that's going to look and how it's going
to respond. And that's why, like I said,
this is a huge proposal in terms of how
we're going to measure this, how we're
going to monitor it, and how we track
the data to say, does this make sense?
But this is a like it's it's a five-year
deal to to really get a sense of where
we're going to land and and where do we
get the best bang for our buck long
term.
>> Thank you. So just a little further on
» Thank you. So just a little further on
this base stabilization project here one
what would the big difference be between
what we did before when we used the uh
the rotor tilled in the calcium
>> the bent time
» the bent time
>> is there a deeper base or what do you
» is there a deeper base or what do you
see as the difference and I I know that
we did a study on what we did before I
think the biggest downfall was it wasn't
long enough it was only for two year a
year year and a half or something like
that and it didn't all the results it
should have.
>> Maybe I defer to Devon. I I'm I'm
» Maybe I defer to Devon. I I'm I'm
guessing you're referring to the bent
knight, the addition of the bent knight
in those roads
>> for the hall routes.
» for the hall routes.
>> Yes.
» Yes.
>> Sorry, councelor Hickey. Can you repeat
» Sorry, councelor Hickey. Can you repeat
your question just so I'm clear?
>> Just a so I'm just wondering how does
» Just a so I'm just wondering how does
this compare to what we did before when
we used the razor to roed hill in the
>> the bentonite and the pelletized
» the bentonite and the pelletized
>> calcium. Yeah. Yeah. So that we applied
» calcium. Yeah. Yeah. So that we applied
a 4-in um mat of gravel to the top of an
existing gravel road, injected the
calcium and and added the bentonite to
that 4 in only. What this is proposing
to do is go down up to 12 in and mix all
of that in. So you're taking some of
that underlying soils, mixing in with
that granular that we placed and
injecting that MG30. So it's a deeper
treatment than previously and it's
incorporating some clay into it as well.
Um, one thing that we that we saw is the
aggregate that we were using was very
low in plasticity, which is clay content
in the gravel, and that's what really
binds it together. So, when you're
traveling on some roads and you see that
surface is very loose and it's popping,
there's that lack of of clay to bind it
all together. So, with this process,
you're bringing up some of that clay,
those underlying soils, and getting a
more cohesive mix that holds moisture
longer and should result in a longer
lasting surface. That's the intent
anyway. But that's why we want to do
some trials just to do that comparison.
» Did that answer your question?
>> All right. Questions? Um,
» All right. Questions? Um,
[clears throat] so thank you for all the
questions on the deep base stabilizer.
We can walk through all these. Is there
any
particular ones uh for discussion or
questions on these?
>> Thank you, Mr. Chair. Um, just on
» Thank you, Mr. Chair. Um, just on
[clears throat] the uh armadillos in the
traffic count, I I understand the
concept of what they do. I just I'm
wondering whether they have the ability
to determine the size of the vehicle.
>> Uh, thank you councelor Kervis for that
» Uh, thank you councelor Kervis for that
question. it they do not in
they don't
>> what what they do include is in addition
» what what they do include is in addition
to counts they do also have the speed
and speed is also direct correlation uh
on the impact of the roads as well. We
do own two of these currently and we do
rely quite heavily on this information
for operational decision making as well
as include that in our asset management
for sections of roads. Do you have on
that call or?
>> Yeah, it's on it's on that and it's it's
» Yeah, it's on it's on that and it's it's
something that it's not lost on us. I
think we want to understand as part of
this there's actually a few pieces at
play here. I just want council to
understand what we're working through
because we have talked about it. There
is technology that will help us do that.
There's technology that'll count the
number of axles or different ways that
you can measure it. Most of those are
significant investments and we don't
have a lot of data on our gravel
roadways for traffic counts and
everything else. So even the transfer
that Ryan already highlighted moving
from public works and his waterfall into
infrastructure is some of that FTE count
that we're trying to top up and combine
this. So we get somebody that's in the
field helping with the AM coordination,
the liaison, moving those armadillos,
start gathering some layer of
information and we move in. As we can
narrow that down, then we start to look
at some of those other technologies to
say, okay, h how do we actually figure
out what the intensity of that traffic
is, not just the traffic count, because
to your point, 200 light duty trucks can
go down that road and you have a a
silage hall on a different like it's not
the same. We're just trying to narrow
that gap at this stage and it's still
early. So I I don't want anybody to have
the assumption that any of this is a
silver bullet. This is us layering in
information as we move towards that
ultimate goal.
>> Thanks. Well, and don't get me wrong, I
» Thanks. Well, and don't get me wrong, I
asked the question because you know if
in an ideal situation it would be great,
but uh I appreciate that it's more data
than we had before. And so I you know
I'm I'm not trying to put it in a
negative light. I was just wondering
whether it actually had that ability. Be
awesome if it did because then we would
be able to tell, okay, yeah, we've got X
number of large trucks and and light
duty traffic, but it's as you said, it's
better than what we have now, which is
little to nothing. So,
>> yeah, I appreciate that. Do recognize
» yeah, I appreciate that. Do recognize
that Cole is correct. The technology is
out there. Uh it's used on paved
surfaces uh often that will count axles
and different vehicle sizes. They also
look at birectionals for multi-lane. So
there is technology that's out there has
not been successfully employed in gravel
roads because you would have to like dig
a trench in your road permanently leave
it there um and hasn't been tried uh and
would be very cost prohibitive at this
point in time. So right now we're if we
can start with some count data that is
going to definitely help us
from where we are today.
Thank you. So, um, John asked most of
what I was going to ask, but would you
still need uh to hire the humanized uh
traffic counters as well? I'll call him
humanized. I don't know what else to
call.
>> Yes. P Patty Patty is a human lady.
» Yes. P Patty Patty is a human lady.
>> Patty Patty is a wonderful member of our
» Patty Patty is a wonderful member of our
team. I'll have Devin speak to that
because I believe there's some
>> I would actually Yeah, I I I don't know
» I would actually Yeah, I I I don't know
what Devon's gonna say, but um before
before we do that, I I think this one is
a close session discussion um related to
personal information
uh if we're going to be able to speak
about that openly. Whether it does or
doesn't replace that individual or not,
I don't I don't know the answer to that.
But I I don't know that that's a
conversation for public session.
All right. Um,
» other qu I walk through u
the other projects here road.
Uh this is for some potential if we
needed to change um traffic flow on that
particular section of road. Um this is a
a maybe something we're looking at uh
currently operationally. Uh the next
one, hard surface consultant. Um, as
we're looking for more planning
on [clears throat] managing our hard
surfaces, um, we're looking to bring a
consultant on board for that to, uh,
better lines so that we actually have
better data, more assessments, and
really build that out, um, over our
operational period in 2026.
And then the final two, um, Shaughnessy
Pump Station, we just need to put a
fence around it to protect our
infrastructure. And then the final one,
uh, this was a really successful piece
for us actually for our 2025 season
where we, you may have seen that we had
a grater that was, uh, temporarily
staged in Steuart Siding. We were able
to rent a a small
plot of land on uh with a vendor there
where we had our our fuel tank there and
that actually significantly cut down our
mobilization time for that particular
greater operator to function in
divisional one. In fact, up to 45
minutes a day um in terms of efficiency
to improve our productivity. So, we're
looking to do that again because we
don't have aside from our cold shop, we
don't have um anything in division one
for our greater operators like we do in
our other divisions um where they kind
of live full-time and work directly out
of there. So, it's a huge operational
efficiency here for a very small dollar
amount to to go and find a just a spot
of land or vacant lot. So,
okay.
We'll move to fleet services.
>> Can we just take a a quick five?
» Can we just take a a quick five?
>> Yeah, that's fine.
» Yeah, that's fine.
>> Okay, thank you.
» Who is
Thank you very much. We'll call the
meeting back to order at 12:15 this
afternoon. Brian, the floor is yours.
>> Okay. Thank you.
» Okay. Thank you.
Uh so moving into our fleet department.
Just a quick overview. Fleet services
department maintains repairs all small
engine light duty trucks, heavy duty
trucks, heavy equipment uh with costs
allocated to department through uh
equipment rentals. It also provides
preventive maintenance, manages
commercial vehicle files, conducts uh
CIPS and overseas warranties and recalls
to keep the fleet reliable and coste
effective.
So overview uh of this slide. Um, we'll
get into the details on the expenditure
side with the waterfall. Um,
really the key highlights here, we've
really flatlined
our operational
of this. It's probably the most
consistent of all of our departments.
What you're seeing here is a carbon tax
levy. We're showing that because that
will be escalated as per government
regulation until 3030. So that uh
estimate based on our current volume is
40 grand and then goes 50 54 over the
next three years. Uh the other one where
you're seeing that [clears throat] cost
savings is we completed our fuel master
upgrade. So this is our automated
real-time uh fuel servicing where we
account for uh all the fuel that goes in
and out of our vehicles by vehicle. And
so uh we finished that in 2025. you're
seeing that as a cost reduction for
2026.
And then the other uh elements there are
just internal realignments with actual
expenditures. Any questions on fleet?
This is the one that's fairly
straightforward as a whole.
>> Any questions on fleet for Ryan?
» Go ahead.
>> Uh so
» Uh so
20
six and 27 have that escalation cost.
And so it's just we've absorbed that
this year with the operating projects
paying back or how did we how did we
absorb that escalation
>> like the just so I'm [clears throat]
» like the just so I'm [clears throat]
clear councelor Vanessa are you looking
at the difference between 26 and 27?
>> Yeah. So when we go 26 to 7 and 7 to 8 I
» Yeah. So when we go 26 to 7 and 7 to 8 I
guess it would be there's a 113 and 120
escalation. Um, how did we absorb that
this year or did we just not have a cost
escalation?
>> Yeah. So when we and Justin maybe I'll
» Yeah. So when we and Justin maybe I'll
ask Justin to speak to this one in terms
of what the final bucket in that but
what we looked at as line by line some
things that we didn't do a blanket as es
escalation on as we reviewed our
operational budget for 2026 based on
what we already know.
through the reef to councelor uh Van
Essen. Um
you'll notice the
escalation
is on the fourth bucket here. So it's
33,000
higher than the previous year. And then
in
2026 it's 113 and escalation in 20
between 27 28 budget is the 120. It is
lower and some of that's to do with the
timing of when we looked at the dollars
for the budget this year. So I didn't
want to just blanket apply a percentage
across every single line item.
So we moved we moved part
[clears throat] like part of the
staffing is was fully bucketed and
planned for in 25 in fleet. The salaries
which was the escalation that we've
placed on everything in those future
years is broken out from 20 like 25 to
26. But the specific escalation there is
we've expanded the scope. So some of
that FTE that was originally fully
bucketed to that department is now split
across multiple departments based on
their scope of work. That's that's why
it's less in this year and greater in
the subsequent years because then that's
the applied. So we're actually
decreasing that if you look at the the
slide above and then it starts to
escalate normally there. So that's just
the differential is all that is.
» Okay.
[clears throat]
Next one here uh utility services and
programs. So quick quick overview.
Lethbridge County operates and maintains
a large regional water system,
wastewater infrastructure and solid
wasteway services to ensure reliable
utility delivery, environmental
protection support for residents,
businesses, and the growing aggra food
sector. These programs involve system
monitoring, repairs, regulatory
compliance, lagoon treatments and
maintenance, and waste disposal
services, all backed by ongoing
investment and planned maintenance to
ensure long-term sustainability.
Um, as you'll see on on this slide here,
it's right before you.
>> Yeah, I think I think before we go any
» Yeah, I think I think before we go any
further, let's
>> Sure.
» Sure.
>> Yeah. So, we're going to um I think for
» Yeah. So, we're going to um I think for
some of this conversation, it's going to
be really important uh pursuant to ATIA
section 26, harmful to intergovernmental
relations, then we just need to start
the conversation in closed and then we
can come out of close for the remainder
of the discussion related to utilities
if that's all right with council.
Okay, Eric motion to move into close
session.
>> Eric's moved to enter a close session at
» Eric's moved to enter a close session at
12:21 this afternoon.
Any discussion? Call question. Those in
favor? Anyone want? Those opposed?
>> I
Kevin's moved to come out of a close
session at 12:42. Any discussion? Let's
call the question. Those in favor
is carried.
Board is yours, Ryan. Okay. Thank you.
Um
we see here operating projects in 2026.
Uh total
spend at the ask is $150,000.
It's for two two projects. One is in
Iron Springs. Uh it's to do some
maintenance activities that some minor
repairs there that will significantly
extend the the life of that to avoid
some much more costly um repairs and
fixes. It's at $75,000.
And then the second one here is to
improve the the quality of the raw water
uh in the Broxurn Business Park. Um that
was targeted for $75,000. This is water
that is used by the majority of um the
businesses in that area and we've had
significant problems with water quality
and it's been it's been a struggle um
because that system has been neglected
for quite a while. And so we're very
confident in in this technology will
will actually solve that to increase the
the quality of the water. So those are
two. Any any questions on either of
those?
All right, we'll move to the the final
one and you'll be done from here for me
for a bit. Uh a services.
So a services uh fairly broad where we
actually invest uh in addition to what
we're legislatively
responsible for for uh weed control,
pest inspection, soil conservation, and
and management of of those elements.
Mowing and weed control are really key
activities that we do throughout the
year. And that's what will represent
here budgetarily.
do want to highlight the fact and I know
we brought this up in an ASB meeting
earlier in the week the reduction we did
have on on one of the the grants but
you'll see the the other portion of the
grant was awarded for five years.
So let's move into this.
We'll start from left to right.
Um what we're seeing here with the
personnel adjustments again finally just
right sizing our our budgetary
allocations using our Questica software
it's so that everything is aligned uh
properly uh on that end and that
includes our cola as well um at 2% for
that team. So we're not reducing
headcount here just to be clear we are
not reducing our headcount with these
teams it's just a right size. So if you
were to look at back to the slide of
public works where we were up where
we're spending more and this they offset
it's not net zero but the bulk of that
remainder there's only about $150,000
and majority of that is actually cost of
living. So between this and and that
other portfolio where we right sized um
for staffing.
So that's that's internal uh scope
increase here is actually some
additional chemical um use for spraying
roadside spraying that we anticipate um
in 2026. And so you see that charge
there scope decrease highlighted this
one. didn't really need to, but it's
just some savings that were identified
internally that as we always review line
by line, not nec no change to level of
service, but just as we reallocate
internally. So, I wanted to highlight
that. And then you see escalation uh it
fleet allocation and the budget
adjustments uh are highlighted there as
well for operating projects. Uh that's
coming down. Um, this is a realignment
where in 2025 our MR funding to support
the Turan
flip to this. Yeah. The Turan Park uh
that we redid in 2025.
The funding flowed through our
operations and now we've corrected that
for future in uh expenditures will flow
directly from the reserve. So Haley
supported us with that. So that's why
you're seeing this reduction of the 110
and then also seeing that change uh as
well in 2027 that minus 40. It's it's
right sizing where those monies are
flowing. They shouldn't flow through our
operational account on that.
Just a couple operational projects that
we have planned for 2026.
Um,
we have a a five-year cycle. We're
tightening up our whole tree maintenance
program as a whole. Uh, looking to add
and finesse that in our asset management
system. We do have a lot of those
already recognized there. But, uh, we're
seeing trees that need some care and
attention, uh, near power lines, and
that's work that, uh, we're not
qualified or should we be doing that,
uh, because of the level of risk. And so
we're looking for $40,000 for 2026 where
we'll hire a contractor to service and
maintain some trees that need to be
addressed before they come a bigger
problem for the county. And then the
second line there is the manure bypass
um program which we've had funding in
there in the past. Sorry.
>> Oh, just a question on manure bypass. We
» Oh, just a question on manure bypass. We
actually have some uptake on that
funding. I did receive a request for an
install in spring of 2026. And so, uh, I
believe the amount that we had put there
was $5,000 per, uh, install. And, uh,
because I saw one in anticipation that
if there is one more in 2026, I figure
maybe we ensure that we have that
covered in the budget instead of having
to find that or pull from somewhere
else. So, that's why you're seeing for
funding for two.
>> I think that's wonderful. It's a great
» I think that's wonderful. It's a great
program and it would be nice to see more
update on that.
>> Thank you, John. Mark,
» Thank you, John. Mark,
>> just to backtrack on the contract for
» just to backtrack on the contract for
the power company
that is something else that we do.
>> Yeah. So, the so Foris is is our is the
» Yeah. So, the so Foris is is our is the
provider in in the county. They don't
provide tree pruning for free
um in those rides. We've connect we do
work with them but you're responsible as
a private land owner to manage the trees
in that distance if there's any impacts
of the power lines. What they'll do is
they'll come in you'll they have crews
for sure but they'll come in they'll
send you the bill if they come in and do
that work.
I think there is some there is some
depending on where
» yeah we did reach out to foris and we'll
work with them but it's our obligation
to to ensure that if it's trees within
our rideway or our properties that
they're not interfering with the
infrastructure.
>> Okay.
» Okay.
Thank you, Mr. Chair. On the manure
bypass crossing, um,
so I've had a few people ask me about
that. Do is does the county pay for that
then? Like that's or do they have to
cover that? So, if I understand
correctly, the program when it was there
is that the county uh would cover up to
$5,000 of that install. We do do that
work in house. Um, because this will be,
I believe, the first one we've done in
three years. I think that program was
rolled on in 2024.
Anyone correct me on that?
>> Um
I we haven't scoped this one yet because
uh it was a late application just like a
month ago. Um but we'll get out there
and have a look, but I'm confident we'll
be able to conduct that work to get that
done.
And that's it. I'm going to pass it over
to Devin.
Thank you.
[clears throat]
>> Good afternoon, council. Pleased to
» Good afternoon, council. Pleased to
introduce the development and
infrastructure uh operating budget for
2026. Uh I'll be starting with
infrastructure services and then when we
get into planning and development,
Kaylin will come up and present that
budget.
So, just a brief overview of the
department. I'll just go through some of
the core activities. So, obviously,
capital project management uh is one of
the main key functions of the
department. That's not just projects
within the county. Those are regional
projects as well as Cole alluded to in
his uh introductory uh slides. We're
participating in the Malloy drainage
projects, the southern regional storm
water drainage committee projects such
as Horsefly and other regional
initiatives. Uh the same goes for uh
engineering studies. We do those both
locally and regionally with our other
municipal partners.
uh the act the department takes care of
water treatment and distribution
agreement management. So that's our
agreements with the commissions or with
the commission pardon me and the city of
Lethbridge and uh and our other
customers of the commission plotable
water sustainability such as license
management and acquisition the
Lethbridge regional water service
commission management uh operational
project planning and support. So, as
Ryan alluded to, we did that dust
control test section. That's just one
example of how we provide that technical
support to operations. Uh we manage all
the procurement within uh Lethbridge
County procurement documents, making
sure we're meeting uh our requirements
uh within those documents. Uh asset
management as you know our geographical
information system the mapping that we
bring up during council meetings uh
development and engineering oversight
crossing agreement management and gravel
pit management.
our proposed 2026 budget. Uh you'll see
we've got about $184,000 in anticipated
revenues and about 1.74 million in
anticipated expenditures for an overall
department uh tax support increase of
2%. And I'll get into that in a little
bit detail in the waterfall diagram
here.
So between 25 and 26, as Ryan mentioned
previously, there is that transfer from
public works to support an asset
management survey field tech position.
Uh $50,000 from his budget and uh some
savings from my budget as well to fund
that position. And that position will
really help uh in supporting our asset
management initiatives and operational
support. Um they'll be conducting survey
for our road rehab crews, drainage and
other operational activities and also
providing field inspection services for
approaches, crossings and other things
that operations historically completed.
And this is again just furthering that
um transition to that technical services
hub supporting operations.
Um, if we go to the next one, the
$32,000 reduction, that is the reserve
transfer for land. That was also alluded
to earlier, moving from um this budget
into public works going forward. And
then the next one, the 321,000, that is
for a couple operational projects. Um,
$200,000 for an area structure plan. So
that's for the land surrounding that
parcel that we recently purchased uh
south of the Broxurn Business Park. And
now that we have the in-house expertise
to conduct those area structure plans.
So Kayn has done those ASBs before, she
can compile the document that get all
that uh information together. The
200,000 is for external services for
engineering to look at roads, drainage,
site grading, servicing, off-site
impacts, all of those uh activities. So
that's a net adjustment of 321,000
uh on that item.
Uh as we continue on, there's some other
minor adjustments we have for escalation
and cost of living adjustments. Um the
redistribution of IT services as uh
previously alluded to just um making
that more um equitable across
departments and then the department
contingency that uh Cole referenced
earlier.
Uh as we go into 2027, uh there is that
29,000. That's just that annualized
position that I spoke to earlier because
in 26 it'll by time you recruit it'll be
about a 10-month salary expenditure
we're looking at. So that portion is to
uh make up the difference there.
And then the decrease of $381,000
that's just the operational projects
that uh we do not have planned for 2026.
And then again going forward your 3%
escalation into 27 and 2028.
Is there any questions on that before I
go forward?
Okay.
So, our proposed operational projects um
there is the
uh maintenance manager CMMS that uh Cole
spoke to earlier that was brought to
council this summer and approved by
council. That is a two-year initiative
70,000 in 2025 and 180,000 in 2027.
And then the area structure plan
development of 200,000 as well in 2026.
And that are those are our proposed
operational projects.
Is there any questions of council?
» Thank you.
[clears throat]
» [laughter]
» Good afternoon, council. Um, moving into
the planning and development uh
department. We shape how the county
grows in terms of land use, supporting
development, ensuring new development
support the community and economy. So,
this means our team, they manage and
maintain all of our statutory plans and
land use strategies. We conduct detailed
review of all of our area structure
plans, resonings, and subdivisions that
are brought before you as the
development authority and subdivision
authority in the county. Uh we undertake
reviews of development permits. It's a
steady high volume of development
permits in the county. We administer all
of the development agreements,
compliance reviews, all those additional
services to support residents. And then
we coordinate any other land use ma
matters with residents, internal
departments, regional partners, external
agencies, NRCB being one of the major
partners.
Um, and our department does include two
third-party providers being Old Man
River Regional Service Commission and
Park Enterprise.
Uh, so this is our breakdown of revenue
and expenditures. is our revenue being
mostly the intake of applications for
development and planning applications.
And we're going to speak to this on the
next slide, but what you're going to
notice most about our budget is the
shift of our operating projects to ai
uh cyclical um activity. So, prior
years, we've always came to council with
the statutory plans that we needed to
review and update in that year. shifting
to um putting money into reserves every
year so that we're planning for it. Um
so it's not actually um it correct
myself it's a basically flattening out
our budget going forward. So just moving
into the um waterfall um this slight p
uh personnel adjustment is just the
shift from an intern to a permanent
position. Um the next column is man
region service commission. Um this is
their tentative budget. They're
presenting their budget to the board on
December 4th. Um but based on what they
have provided us, it's a annual fee of
118,000
for our an annual membership.
Um the IT allocations is the internal
transfers that everyone else has spoke
to. And then the last column in 2026 is
the um silic um planning activities
which those are our statutory plans. um
the residential land use strategy being
one of them that we will update next
year. Um and then in the future years
looking at like our municipal
development plan, land use bylaws and
those types of plans. Um so putting into
reserves every year will allow us to
continue to update those statutory
documents.
Any questions?
So, ORRs is is
suggesting to us that they're
doing a year-over-year increase of about
15%.
>> Can I just ask that we probably move
» Can I just ask that we probably move
into um close section closed uh in
pursuant of section 20 and 26 harmful
municipal interests?
Thank you. Yeah, that was it.
See again. [laughter]
Long time no see.
Okay. So, next we're going to talk about
finance and administration in terms of
services and programs provided. Um
finance and admin is responsible for the
overall financial sustainability of the
county. Our mission is to provide
appropriate controls and measures needed
to manage the county resources and to
deliver accurate financial information
for council and administration in
decision-making purposes. So this area
includes budget um accounting, audit,
financial reporting, payroll, managing
insurance programs, grant management
um and administration of various grants.
So if we look at the overall uh cost
slide summary in terms of revenues and
expenses, uh we've got some increases uh
to overall expenditures. um and we'll go
into that in more detail on the next
slide specific to um various areas
including uh wages and then also just uh
transfers from um other departments.
So if we look at the waterfall slide and
we just talk about high level changes
from 2025 to 2026, we've had um some
personnel changes in redistributive
resources. This position was unfunded in
uh 2025 and was funded through the
contingency in the um administrative
area. and so uh in the CAO's office. And
so this is just uh trueing up the actual
costs in terms of that those wages
including um cost of living adjustment
and benefit increases and as you've seen
throughout the the remainder of the
departments and areas. We've seen an
increase in insurance. We've seen an
increase in audit costs which have been
both adjusted and then um we've
reallocated
all of the software from uh various
departments into it and then
redistributed those costs just to try
and um allow for some more consolidation
of you know where we're at what software
and so I'll talk about more about that
in the IT department but that is
essentially the finance and
administrative
uh area of the Tony,
» any questions, sir?
» Haley,
>> if we move into information technology,
» if we move into information technology,
uh Doug sends his regrets. He had to
head out. Um and so this I'm just going
to cover this for him. In terms of the
IT department, this is about delivering
responsible responsive support and
innovative solutions to the county um
with upholding a high standard for cyber
security. And it's really the first line
of defense and protecting the county's
financial information and all systems
handling of sensitive data secure,
reliable and compliant with industry
best practices. Um so this includes
governance, operations and hardware and
infrastructure of uh are the core
activities related to information
technology at the county. If we look at
this slide, uh, in terms of cost,
uh, it looks like there's a fairly
significant increase, but again, this
was the conversation about how we were
trying to take all of the costs related
to software and, uh, information
technology, move it into it, and then
redistribute that based on uh, need,
individuals, and headcount within the
within the county. So it a lot of this
will will be a a reshuffleling of
information of uh various costs from
other areas. But if we go into the
waterfall
uh slide and just talk about the key key
drivers. So this includes uh 2%
escalation and cost of living
adjustment. Many of our software
providers have had a higher um
escalation than 2%. Many are are closer
to five. And so if there were specific
contracts that were known, we did adjust
for the anticipated increase. Um we've
had some implementation of various
softwares including our budget software,
our asset maintenance software as well
as government frameworks. And we've just
looked at kind of consolidating and
providing opportunities for um better
control and containment of the various
softwares that we do have within the
county and how we redistribute those to
the departments through uh inter
departmental charges. If we go to the um
proposed operational projects for it uh
for the upcoming year, the biggest one I
just want to highlight is uh our need to
replace our enterprise resource planning
system which is our financial system and
our payroll system. Um, we received word
that there's end of life and so in 2026
we would like to begin the process of
putting out an RFP
uh for replacement of our ERP system
because we're going to anticipate that
there's going to be a lot of pressure in
terms of many municipalities are going
to need to be moving to different
systems and so 2028 is going to be a
very busy year for consultants and
implementation of various
municipalities. So, we're just trying to
get ahead of that to ensure that we've
got sufficient time to to replace that
system. And so, um that is included in
the budget. And we'll talk more about
those IT projects, uh when we jump into
capital, assuming if we do that today or
on Monday.
» Just out of curiosity, new resource
that
It's the financial system and payroll
system for the county. Yeah.
» Uh the final one I'd like to talk about
within corporate services is assessment
services. Uh so recently we were in
front of council to um discuss
transitioning to third-party assessment
services uh based on some planned
retirements at the at the county. And so
this is really about this is 2026 will
be a a transition year for assessment
services in terms of this how we provide
that. Um and so there's some transition
planning and so there's a lot it's a
little bit more complicated next year
than or proposed to be more complicated
next year than it will be going forward
just given those transitions. So really
assessment services provides the
property values for residential farmland
commercial properties. Uh the county uh
coordinates receiving all of this
information from the province for linear
properties and it's just about providing
um ensuring that we're using market
values, regulated regulatory rates and
um
agricultural values depending on
provincial legislation. And so this is
really um designated by the municipal
government act in terms of the
regulations and uh Alberta assessment
standards.
So if you look at the overall summary uh
for cost, you'll see some increases in
terms of the general and general
services in contract based on us
shifting from in-house assessment
services to an external third party. So
you'll see in the first uh the
comparison of 2025 to 2026 that this is
a transition year uh in in anticipation
of our county assessor retiring. And so
this will be uh the year of of getting
all of that knowledge and of of that
information and ensuring that we have
all of the structures and systems and
processes in place that we will be able
to kind of divide what would be
internally continued to be provided
versus what would be provided by this
third party. And so then after 2026,
you'll see some savings uh in terms of
comparison for 2027 as we um adjust to
this new way of providing assessment
services for the county. So that change
is reflected there. Um again, all of the
similar kind of 2% escalation um and
just some obviously the outsourcing of
of the contract. And then as we look
forward, we would would see some of
those reductions in the in the previous
years.
And that is it for corporate services.
» That's correct.
Um so
>> so that is a
» so that is a
anticipation that we're going to have
some services that were provided um
because of in-house and there's just
some uncertainty about what what will be
done in terms of dividing between the
third party provider and what will
continue to be provided inhouse. So, for
example, when a call comes in for an
assessment question, we feel those calls
still depending on if it's about the,
you know, they need a reprint of their
bill and or if they need an updated
address and that sort of thing versus
what services um the third party would
provide in terms of specifics about
their assessment value and also just
like system uploads into our financial
system, the printing of the of the
documentation. And so just because of
that uncertainty, we've earmarked some
dollars um in 2027 which we will need to
revisit after we completely understand
what those impa implications will be in
2026.
» Yeah. One thing that we've seen like a
lot of municipalities with our size will
have especially those clerks like we've
got tax and utilities consolidated right
now because we have in-house assessment.
We don't know is the biggest answer. We
don't know what the actual human
resource capacity is in turn. That might
be high. It might go to zero. It might
be we need a little bit more. It's a
placeholder for consideration in 2728 as
we navigate this transition essentially
to to further understand what aspects
are transitioning and what type of
administrative support less provides
currently in his current role. It's just
a we have to go through this first
before we can answer that.
Okay.
» Yeah. Roll up your sleeves, everyone.
Let's go talk.
>> Let's go
» Let's go
guys. I didn't realize I need to be
grandstanded. Oh, yeah. Great.
>> Good afternoon, council.
So, council, I'll just uh briefly uh
briefly go over uh what emergency
services encompasses. So, fire and
emergency response, our newly
implemented regional emergency
management partnership, uh the community
peace officer program, and also included
here is the budget for our provincial uh
policing requisition.
For the purposes of this budget, um
we're going to be doing a consolidation
of all of those together.
So in the revenue side on this slide
you'll show that our 2025 budget you
approved last year along with the
proposed budget for 26 to 28 for your
consideration. Under the revenue we
adjusted our projected revenues for
sales and uh of goods and services to
align more closely with our actual trend
over the last few years. Uh we left the
forecast for the fines and penalties
unchanged.
And you'll notice that in 2026 the
transfers from the reserves increased
quite a bit. However, these dollars uh
have been accumulating in the reserve
account for over the last few years uh
to pay for new fire equipment as it
reaches its end of life cycle and it
shows the withdrawal for that purpose.
So the expenditures uh on the
expenditures side uh you'll notice that
there is an increase from 2025 to 2026
before it begins to drop down and uh
using the waterfall on the next page. Um
I'll explain that in a little more
detail. Any questions on that slide at
all?
» Sure.
>> Hi. Thanks. Um could you maybe just uh
» Hi. Thanks. Um could you maybe just uh
touch base on what uh the projection
821,000 sales of goods and services
where we collect that money from?
>> Uh
» Uh
do you want to comment on that?
>> Okay.
» Okay.
So, we collect money when there's a fire
response and then we use that to pay our
service providers.
We reviewed the last couple of years or
through the reef to council coopers. We
reviewed the last couple of years. We
decreased the expected revenue by
$50,000. We believe that it's a more
accurate but conservative amount to use
for our budget.
» Okay.
» I don't know what's going on, you guys.
Just must be
[laughter]
All right. [laughter]
So, uh I know you're familiar with the
waterfall falls um graphs from before.
So, uh I'll just cover off the key
messages here. So, number one, our
provincial policing requisition is
expected to increase by 57%.
We currently pay approximately $700,000
per year. We expect this cost to
increase to $1.2 $2 million per year.
The waterfall shows that there's a
$376,000
increase.
Second key was during 2025, we stood up
our uh regional emergency management
initiative in collaboration with our
municipal partners, which was a great
initiative. We wanted to show the total
cost of our program here of $198,000.
We show our portion of uh regional
emergency management included in the
green bucket as a transfer of
departments.
Third point, uh you'll notice a small
increase of $28,000 for transfers to
reserve so that we ensure that we are
putting enough money in for future
capital equipment purchases.
Story on the IT allocation is you've
heard it a couple times already
throughout the budget. Uh it's the same
as other departments. And uh the piece
that you're probably most interested in
is the big red fire engine red uh bar
which represents changes to our
contracted fire service agreements with
our municipal partners along with as we
discussed in our previous slide money
we've moved from our reserves to pay for
our portion of capital expenses
including the new fire engine in cold.
These capital costs in 2026 are offset
by corresponding decreases in 2027 and
2028 before the budget settles down back
in about approximately 3.8 8 million uh
per year in 2028. We expect this to be
the new norm with the regional emergency
management and cost increases to the
provincial police requisition. All all
in.
So with that, I know that's pretty
short, but if do you have any questions?
» Thank you, Mr. Chair. Uh so the big the
big bubble there was really just us
getting out of capital on our our fire
services contract.
>> Go ahead.
» Go ahead.
>> Yeah. Through the chair to deputy ree
» Yeah. Through the chair to deputy ree
kerbass. So um that is part of it. Part
of it is is uh we remain committed to
capital at least under our current
agreements um in a few municipalities
and other ones. It was always the
intention. We've just frontloaded that
contribution for a couple of those. So
that also includes the contribution to
Colddale for the fire uh engine rescue
which we continue to be a partner in in
that under that agreement. So yes but it
only partially about twothirds of that
contribution would be that and then one
third would be the other.
>> Perfect. Thank you.
» Perfect. Thank you.
>> Anything else for you?
» Anything else for you?
>> Thank you very much.
» Thank you.
All right, we'll move into growth
[clears throat] and engagement. Uh so as
this this department uh we've
consolidated it also includes marketing
and communications. So, the growth and
engagement portion, um, I know we've had
this conversation with council a number
of months ago, is a new initiative in
our efforts to strengthen our regional
economy, support local business, and
position the county for long-term
sustainable prosperity. So, this isn't
just economic development. It's
investment attraction, business
retention, expansion, stakeholder
engagement, intergovernmental relations,
and strategic partnerships to help
advance our overall economic
opportunities.
And then it is like I mentioned the
communications and marketing department
as well which is responsible for the
county's brand public and engagement
issue management and outreach efforts.
So we'll move into the department. We've
split this one in a couple ways and
we'll get into it in the waterfall. The
big addition here is the consolidation
of growth and engagement which includes
um an allowance. A lot of our grant
applications
a lot of our grant applications we've
just put an earmark there on some of
those. We've got Southgrow contribution
which increased by about 50% this year.
Um we've got um uh obviously the the
corresponding salaries and initiatives
and then there's some of it is an
earmark as we proceed with some of the
grants that are coming forward to
council on December 4th and that we
discussed at the last council meeting.
There is a matching contribution there.
So we put some earmarked funds aside.
Whether they're fully covered here or
not, we'll understand better once we we
find out what we get traction with.
Other than that, we've continued with
the deep roots bright future video
series. We've got a lot of traction
there. We've consolidated our
advertising budget to in a similar vein
as we did with it to give more
responsibility to the subject matter
experts to help us navigate and make the
best recommendations for our advertising
efforts for the various departments. And
then there's a number of buckets there
that are kind of up and down that are
just minor changes. We've moved some of
those initiatives up and out, but
they're fairly nominal.
Is there anything the council wants to
discuss in detail there?
So this is the slide that we had before.
This was the summary based on what was
um originally proposed. I think this is
before we move to capital. This is the
time to kind of see where council's at.
If there's anything we want to circle
back to, we can go back to our parking
lot item up for discussion. Um, but
everything you've seen today, this would
be the the net of those revenues and
expenditures and projected tax rate
implications.
Sure. Do do we want to have any
discussion here? Whatever whatever we
lock in here is what will be coming
forward on the fourth for
recommendation. So I just want to make
sure that
we're good on operating
You know, I think what's unique this
year is the growth that we're
experiencing is not that is not just
assessment growth based on index
property values. That is primarily net
new growth. And so, um, some of that
coming online offsets what those rates
are. When we set that rate in April is
is when we talk about that that
distribution,
um, on how we want to do that. I I would
anticipate and I and I can't answer this
in earnest to say here's exactly what
this is once we peel that new growth out
because it is still a projected growth
at this point. We don't have all of the
information on some of that finalized
assessment. Um that we're probably
talking about a couple percent increase
across the board. how that gets
bucketed, if it is it more on one side
or less on the other from a what do you
see on your tax bill? That that's the
conversation we need to have when we set
those tax rates to support that.
Yeah, I I think our recommendation would
be to treat them a lot more equally this
year, especially based on some of the
other um potential advocacy efforts and
initiatives that council's exploring for
revenue um right now similar to and
we'll talk about it in capital even our
market access network and the business
tax um program there where I think we
just we plan to index it kind of across
the board rather than targeting egg at
this time until we have a better
understanding what those impacts are.
That that's kind of what I'm thinking is
if if that proceeds then I think it
would probably not make sense to index a
at a greater rate at this stage. If that
doesn't proceed then I think we'll know
more by April and that could change our
strategy at that time. And and so I
think that's kind of the big question
mark that we have to understand at this
stage.
I think if if you guys want to tackle
it, we can. I know Haley's pulled some
numbers. I mean, we have we would have
to do some more vetting if you want to
truly subsidize it to understand what
the
um the total would be. Now, just on our
MG30 side, it was like for what they pay
for the dust suppression that we had
calculated previously was covering. If
we were just to say we're adding a
second application, I think it's fair to
assume it would be in and around that
$500,000.
I I would be reluctant to do that. What
I would rather see us do is add the
second application at a paid rate. We go
back and we figure out what that
secondary rate needs to be based on some
of the calculations that they've done to
date that gets incorporated or tweaked
in the schedule of fees before we roll
out that form. Figure out the value
proposition there and the uptake and
then if it has the impact and we want to
continue with that. I think it's a lot
easier to say we would then subsidize
that or or look to add that for free. I
think it's a lot harder to add it for
free at this stage.
I mean, open to the discussion. It's
it's a council decision. It's just a
it's not a small amount of money.
>> I would I would maybe start at the
» I would I would maybe start at the
beginning.
Is there an appetite from council to
provide
dust control, dust suppression
option to our residents? Is that is that
a level of service that we want to
>> just overall is this a program that we
» just overall is this a program that we
Maybe we need to provide a level of
service for
Is there an appetite to explore a second
application?
>> Yes. Okay. Then I move to Eric's
» Yes. Okay. Then I move to Eric's
question. I guess is that something the
council would entertain
uh subsidizing that second application
I I'd like to
» Thank you, Mr. Chair. I think I could
see people wanting people that want the
second application would be willing to
pay for it. That's why they would go for
it. So I don't see us to me it would
just keep the two same and if you
subsidize the second one they're going
to go aren't you subsidizing the first
it just so if we can come up with a few
structures so that you give pe people
the option of having a second and if
they do this is what's going to cost
them. So come up with those numbers.
>> Thank you Mr. Chair. I first of all I
» Thank you Mr. Chair. I first of all I
believe in the program but I believe
that the program needs to be reworked so
that it's uh um well so that we generate
less complaints so we do a better job
with it. I think if we're going to do
something, we need to do a good job of
it. And I think, you know, providing a
session an application is definitely
merited. But I believe that the program
should fund itself through through the
contribution from those that support it
because I that's the way it is right now
um for the most part. And I I think it's
important to make sure that the people
that that choose not to have dust
control don't subsidize the people that
do.
>> I basically agree with what John says. I
» I basically agree with what John says. I
think if you uh uh include it all in one
package, you'll be doing the same amount
you did in the spring because everybody
will want it done. So that just cuts
into our time, too. So jobs that other
jobs need to be done.
I want to maybe push back a little bit,
John.
It is about matching expectations
whether it's dust control, dust
suppression.
I do I think that across the board there
is there's something to be said for how
the program is delivered. I think the
expectations of the program are the
biggest limitations to it. It's what it
is. It's suppression and it we live in a
desert with high high load high
intensity traffic and I think it's
trying to I don't know how we
expectations because I think there's an
element of well you didn't do this you
didn't do that but at the end of the day
it is it's not the silver goal it's like
well I do appreciate what you're saying
I think it is our messaging has to be
spot on clear and what it is and what it
isn't I think we have to be very clear
from what the application is when the
windows of application are
and the fact that we're going to break
through those when we have to not
as long as we're hearing that and We as
council have the same as administration.
I think we have to proceed
in aligned fashion, but it's tough.
I would say that's valid. I think, you
know, maybe that's part of it, you know,
in terms of of getting the message out
there of us doing a better job with the
program is is, you know, making sure
that people understand what it is that
they're getting. So, I think that's a
very valid point.
Thank you, Mr. Chair.
>> Yes, it's calculated.
» Yes, it's calculated.
>> Yeah, I'm trying.
» Yeah, I'm trying.
Um,
realistic numbers what I see when I'm
out there up and down my road. I buy 300
m.
I do uh I have work to deal with
neighbors, so I buy 300 m. I buy 100 of
their meters at uh at the $65.
So, that's $1,950
for my 300 m.
Uh, it lasts in all reality 1 to 4 weeks
of good suppression.
If I got to double that
to get 8 weeks of suppression of good,
heavily effective, I'm at $3,900,
but that's on our what I'm going to call
better. I also had complaints and I saw
it come that one week of the nurh hall
over it. The guy says, "I put nine or he
had the lower amount, so whatever. 200.
He put $1,300 out for one week of use,
cost per day,
uh, effectiveness, all that. Yes, I want
to see the program work. And I think the
product is getting applied very well. I
think we are trying very hard or we
public works is trying, but these don't
compute to me to put out $3,900.
That's like my tax bill going into a
quality of life thing. Um, so I I still
going to be pushing a lot harder to say
uh yes, second second application, but I
think the the bare minimum I want to see
is that that it's it's half subsidized.
you know, we get a second application,
we're going to get less product. That's
what the discussion was. Unless we want
to give a full rate second application,
but we believe there's some residual, so
it's a top up. So, I want to see it go
on, you know, maybe have it as a top up
program at three bucks
uh or something like that.
Um open for discussion on that, but
that's my proposal would be more like
that. So that our total comes in at 950
for a double application or 650 for a
single.
» Start over on that side.
>> Thanks. That goes back to one of the
» Thanks. That goes back to one of the
previous comments is that why should the
people don't even subsidize those that
do? That's your option. So if you you
want to you know like you said you got
your 600 meters and your guy got hauling
a manure and if we didn't have the
program would you be okay with the dust
or you'd be screaming for a program. So
it's if it lasts a week or whatever, I
mean like we we've been told I mean the
product is designed to last in regular
conditions, light traffic for 3 months.
So um if it's getting if you're losing
it in a week, you got bigger problems.
It's traffic volume I would think. So
but I still think we need to do
something um and provide an option to
our residents and let them if they want
it, they can pay for it. And I still
think the second off or the second
application at a different time of year
is help.
It's going to it varies every year. One
year you may be having dust problems
like crazy because you've got four
different crops coming off late around
you. Other years there's nothing around
you. So it's you know it's a nice quiet
summer have a barbecue in your front
yard every year. So um dust is going to
be non-stop. But I think to to eliminate
the program isn't going to help. That's
going to make it worse. So I think that
I mean like I said if you've got it if
you're losing it in a week then there's
bigger issues and it's not the the
product. It's there's just the traffic
volume. So just I don't know how we deal
with
>> Yeah. [clears throat] I mean, my first
» Yeah. [clears throat] I mean, my first
takeaway is we need benchmark to
reassess Eric's taxes, but um
the uh I think the bigger conversation
may there's two ways to put this into
context and if I could package something
or propose something to councelor Van
Essen where maybe the first option is
it's an in-n-out, we don't subsidize
that second application at all. whatever
that is. Um, or if you're going to do
it, because we don't have some of those
numbers today, I think there's a lot of
work to figure out what that is and we
can do that. But as for budget
conversations, one thing that we could
maybe explore, and I'm I'm not
suggesting we do this or don't, but but
to what's been proposed is setting
whatever that is and then just
earmarking a set number of dollars
either through tax equalization or
something else to say, hey, whatever
that program is in those applications,
we base it on our projections and we
offset it by $100,000 from reserve or
something for this year or $50,000 or
pick your number. we'll go back because
then the budget can remain. We can go
back rather than having to adjust that
rate. We do it year one, see what the
uptake is at that second application
rate that gets calculated subsidized
as best as we could predict it by that
that dollar amount. So now we've said,
hey, it's not like we're just earmarking
X to go towards that program. And then
if it's successful, then we talk about
what that rate should be in year two
because I think we also need a year of
What is the feedback? How we and and a
conversation we need to have with
marketing and communications when we do
this, how we get objective feedback
because right now we hear the complaints
and then you get out there and it's like
not everybody's up like not every
everybody's upset about the program. We
love the program. They don't want it to
go away. I think we need to also have a
strategy as part of this to see how far
we're moving the needle with this versus
the single application. those that that
would be how I would maybe suggest to
approach the two items that are being
discussed.
>> Okay.
» Okay.
>> Thank you, Mr. Chair. Yeah. And I I
» Thank you, Mr. Chair. Yeah. And I I
totally agree with you about with with
Eric about, you know, offering it to to
the residents. I just for me would like
to see the numbers, right? Um of what it
would actually cost to do that. So, if
we're able to get those numbers, then I
can.
Yeah, that's just how I'm saying.
>> Thanks.
» Thanks.
What if we if we decided as a group to
date to double that number that we have
in the budget currently?
What would be the the I guess the the
implications on our our increase in the
taxes? Because I mean there is an
implication there. bring it up from from
3% to
» Yeah, I think we can calculate that. I
think to to Lauren's point, the number
just needs to be the exact same number
as the first application because if it's
free, you're doing too. Why? We're just
going to assume that
>> and then we just remove the revenue side
» and then we just remove the revenue side
of that equation and see how that
adjusts. And that's something that Haley
could look at. I mean, it's
>> and so here's my thought process on
» and so here's my thought process on
that. If if we agreed to do that and
have an increase in our budget,
then we've got some flexibility when we
go to pass that that bylaw
if we're going to what are we going to
do? Are we going to do two applications?
We're going to do one application. Is it
going to be subsidized? Is it not going
to be subsidized? I I'm my concern is
that if we pass the budget as it sits
without putting an increase in it, we
just fund it from reserves as as sort of
a a uh stop gap. Um is that maybe the
right approach or should we It's a 3%
increase roughly. It would be another
3%.
Yeah. Well, that answers a lot of
questions, doesn't it? Yeah.
Yeah. So that you know that would bring
the increase up to 6% which um I
>> our recommendation
» our recommendation
>> my pallet is not there
» my pallet is not there
>> we would need to lower contributions to
» we would need to lower contributions to
reserve or something there to solve that
that's just
>> that's a very large job
» Tony thoughts
thank you Mr. Sure. Close your remarks.
Uh subsidize services. We subsidize a
variety of things we don't use already.
Just going to put that out there. That's
not everything that we're funding uh
benefits everybody. So to say, well, you
know, nobody can we can't possibly
consider a subsidized second application
because not everybody gets it. Happens
on everything. Uh so anyway, we'll let
it lie and I do agree that's get some
numbers and and we can work on it from
that side. Thanks.
» What are the numbers that we're asking
for? Is it just the cost of the second
application? Because I think right now
what I would really like to understand
is what that strategy is because it will
affect the budget next week. Are we is
there any appetite to subsidize this in
any way or not? Like I
>> I I need to know the answer to that
» I I need to know the answer to that
definitively. The question is there an
is there an appetite
believe Eric has an appetite to
subsidize a second application. I would
ask that the rest of the council. Is
there an appetite to subsidize a second
application?
We take a short 10 minutes.
at 2:05 this afternoon. Uh, cool. Yours?
>> Yeah, I think we'll just do maybe uh
» Yeah, I think we'll just do maybe uh
after the break uh one more call for
[clears throat] discussion on the
operating budget before we move on to
capital.
>> I had one uh question, Cole. I know
» I had one uh question, Cole. I know
we've talked uh over the years uh about
our our operations
uh
and I guess looking forward to where
we're going, where we are, where we're
headed as far as uh yeah, the county's
operations. Is there,
how do I put this?
Where are we at, I guess, in those
conversations? And is there a next step
forward in those conversations?
Yeah. Uh, thank [clears throat] you, Mr.
Chairman. Really the next step for us,
well, we've identified sites. We do know
we have aging infrastructure in some of
our facilities. Um, not understanding
what that plan is, the scope, scale,
cost of that makes it hard for us to
make some of the midterm decisions, I
would say, around our current assets.
And so the next step that we had
discussed, it's not included in this
budget, but it would be a one-off um
almost an operating project, would be to
do a functional study or functional
programming, which would provide an
assessment of all of our current
operations. It would help us assess what
our current growth rates are, what we
need, what we don't need, and then it
would plan it. It almost provides you a
bit of a a bible so to speak on on what
your build would look like or how you
could estimate your costs because you
would have that vetted and refined. And
so it's a highle study um looking at all
of those things. And some of those are a
little bit more complicated when we get
into how are we servicing fleet, how are
we doing some of those items that that
drive a lot of those costs. So that
would be probably our recommendation uh
should count council want to proceed to
the next step is to complete a
functional um program or a functional
study and because it would be a one-off
I think we would recommend we pull that
from like the tax equalization reserve
and we earmark some funds there and we
would then go to an RFP and secure the
necessary consultant to complete that
for us.
It's hard to say depending on how we
package that. I think that if we're
going to provide a recommendation, I
mean, we could say I I could see it
being in the 60 70 to $100,000 depending
on how detailed and how much information
we're going to get out of that report.
Uh if we were going to set a rate as
part of budget, even as an in and out uh
out of one of those reserves, our
recommendation would probably be to set
that at $100,000 for to complete that
study. Now, having done a lot of these
in the past, that is a a large dollar
amount, but it is a large dollar amount
that saves you millions on the back end
by having it properly vetted now. So, if
we're moving forward with that, I I
think it's an important document and an
important review to complete before we
look to proceed with anything else.
Well, I think it's something that we
need to move forward to do, but I don't
know that it's anything that we need to
sort of worry about in this particular
budget [clears throat] because it is
we're just in the infasy of this, but as
you'd said, you know, when we look at
moving forward, you're thinking we
should fund that out of reserves
initially then, right?
>> Yeah. And it's hard it's hard to know
» Yeah. And it's hard it's hard to know
what moving forward is without that
done. So, if we're going to do it in 26,
my recommendation would be let's let the
council direct us to make that change
now. It won't affect the tax rate or
anything as proposed, but we would make
the budgetary changes in the in the
budget uh that comes forward on the 4th.
We could that would basically give us
the approval to start with that RFP in
2026.
If it's high, low, or whatever, we could
adjust it at that time. We just wouldn't
complete that transfer or we would bring
that back to council if it was over that
amount. But that gives us the
authorization to proceed should council
want us to proceed with that in 2026.
And then once you have that report, that
probably would take us 12 or 24 months
to complete that review. Then we could
take that, we would have some of those
more concrete estimates and that would
guide our next steps on facility sale
consolidation, what that could look
like.
» I have a second thought on that regard.
Then, you know, this is something that
has been on the table for a long time
and we kind of keep kicking it down the
road and kicking it down the road and I
I think we're we're probably very fast
getting to the point where we're not
going to be able to kick it down the
road anymore. And if we don't start the
process,
you we we potentially could be sitting
here three years from now with a a plan
where we have to hurry up the situation.
And um and to administration's point,
usually when you have to do things in a
hurry, it costs a lot more. You end up
making mistakes or having unintended
consequences because you haven't done
the work in the background. So, I I
would think that it it's probably
prudent for us to start that process
now.
» Any other thoughts from council?
» I think I would agree with John. I think
it's one of those things where it's been
in the background and I think that
before we even suggest to make a plan, I
think if we don't have the the
information to move forward with that, I
think we're doing ourselves a
disservice. So I would I would support
doing it sooner rather than later and if
that's 2026 I would support that
» thank you Mr. Chair this study lays out
start to finish potential revenues of
sales options all that or how
comprehensive is it?
>> No [clears throat] the study would be on
» No [clears throat] the study would be on
our operations. So, typically what you
would see is you would hire a um there's
firms that specialize in this. So, they
would come in, they would do an
assessment. Well, I'll use a really easy
one like they would look at planning and
development. They're going to actually
earmark here's how much office space
they need. Here's the services provided.
Here's what the county has to do. Here's
the infrastructure requirement for you
to provide that service. The harder ones
are fleet as an example. What are we
doing for servicing? What does that look
like? So this study is more on what are
your operations and what are the
infrastructure requirements and then
subsequently you have a very very high
level build cost estimate they would and
and again high level because it's really
based off of square footage and and the
categor categorization of the space
types like office space is obviously
different than shop space in there from
there that would then inform we also
have um assess property values we also
have and then it would be our team that
would be responsible to consolidate that
and say here's what this could look like
if we wanted to move forward. So this is
more on the infrastructure cost estimate
side of a build for current state and
growth. There's some assumptions there.
The one nice thing about these studies,
you can shelf them and you have to brush
them off because things do change, but
you were just brushing them off to say
what's different, not reproducing the
whole thing again. So if we do this and
let's say that it's it sits on a shelf
for 5 years because that's the strategic
position we're in. we're we're really
pulling it out and say, okay, what's
different now than was different then
for services, not a wholesale, we're in
a totally different business. And I
think, you know, that's not the nature
of what we do. So, um, but that's that's
just that piece. And then that's a piece
of the puzzle that goes into what you're
talking about of the other information
that we've already been gathering, the
team's working on.
>> And to your point that, you know, you
» And to your point that, you know, you
dust it off and you go it again, um, we
are not unique as much as we think we're
special. Uh, is this not just a a
requirement for a municipality of this
size or um this like is there not just
shelves of this is how much space you
need um that we have to do this
comprehensive study on it?
Some of it I mean that's reflected the
the stuff that's really straightforward
is reflected in the cost of that study.
And I'm I'm just going to speak from
coming from healthcare where that there
is we did that but it was a lot there's
a lot more nuance where it was the same
thing. It's like this is how big you
build an operating room for these
services. This is how big you build X
for this. But a lot of that is
consolidating all of that. So we
actually know what it is we're looking
for and it's defensible to say you do
this because I think the we're under the
and and we should be you go and build
something and you make those key
decisions in design and construction,
they need to be predicated on something.
So as much as we can say, hey, there
should be there should be just this
blanket standard. Um then you get into
design and everybody has these opinions
and and what is your guiding or
northstar document or principle? This
kind of gives us that to say no we built
the suit for now and the future based on
these key decisions versus we just
thought it would be a good idea to have
X in that. And so that's what this kind
of gives you. But yeah, some of it is
easily like office space is easy. Like
that's not even just that's not unique
to municipal but some of the other
things for
council lounge like how many spectators
there are how many those are
municipality specific some of those
things are good to account for in in
documents like this so that we can
actually plan for that and what the
costs are
anything else
do we support this
Okay. To a dollar amount to the 100.
» Okay.
[clears throat]
» All right. Good afternoon again,
council. Here to present the 2026
through 2030 infrastructure services
capital budget.
Uh this slide I don't think I need to go
over as Haley um described the purpose
analysis and planning for capital budget
in her initial presentation.
So just going through all the
departments 26 through 2030
capital summary uh you'll see that
agricultural services is looking at
$160,000
fleet services almost 3.1 million
infrastructure services uh 7.35 million
market access network program 2.15
million and IT at 300,000 almost for a
total capital uh 2026 capital value of
$13 million 30,000 Getting
into the sources of funding that we have
for our capital projects. Uh this graph
shows the green circles show our revenue
sources that are our primary and
consistent revenue sources such as our
bridges and paved roads reserve. Our
Canada community building fund grant and
local government fiscal framework. Those
are our primary funding sources as I
mentioned. uh they are fairly consistent
and are a reliable source of revenue to
offset capital expenditures. Competitive
funding sources such as the Alberta
municipal water and wastewater program
which we got funding for Shaughnessy and
their strategic transportation
infrastructure program in which we got
funding for our bridge files and our
cement stabilized roads. Those are
competitive grant sources and should not
be relied upon as a consistent source.
Um it's great when we get those we get
to maintain some of our reserves and
some of our other consistent or our
primary funding sources but um not to be
relied on as a consistent um revenue
generator.
This slide shows our projected
carryovers for those grant funds. So
this is showing what we're carrying
forward year-over-year. The green line
shows our bridges and paved roads
reserve. So that shows an opening
balance of 6 million going through the
years. You can see that being drawn down
in 2030 to about $3.6 million. The blue
line is our local government fiscal
framework. Can see just over $2 million
in 26, up a little bit in 27, and then a
downward trend into 2030. And then uh
our Canada Community Building Fund as
well. Um trending that down into 2030.
Um, the reason why I'm sharing with this
this with you is I know in the past
there was some concern with our grant
funding carryovers and the risk that
potentially the provincial government
will claw that money back. Um, so we're
aiming to keep that carryover uh as
little as possible year-over-year just
to ensure we actually utilize those
funds that that were allocated
going into the 2026 proposed
infrastructure capital projects. uh
pretty much the same as what I presented
last year with a couple uh additions in
here. The first one at the top is Range
Road 21-1,
otherwise known as the McNal Road. This
includes the rehabilitation of McNal
Road from Township Road 82. So that's
where the uh McNut Center is uh south to
Highway 508 through cement stabilization
and double chip seal. Uh if you've
driven that road, you know it is in
fairly poor condition and requires
continual maintenance. Um we I know Ryan
earlier this year did uh uh some
maintenance on that road and it is
showing its age and and uh and those
failures are occurring. So by
rehabilitating this road, we will
greatly extend the life and and reduced
operations maintenance requirements on
that stretch. And we are also planning
to do some drainage enhancements to
align with the Tiffen storm water
management plan because that road is
within that Tiffen basin and we want to
make sure whatever we're doing on this
project we're aligning with uh those
drainage requirements.
Second one is Range Road 23-4, otherwise
known as Old Highway 23.
And again, we're proposing to cement
stabilize this road from Township
Township Road 102 to Township Road 104.
104 was the end limits of our previous
project. Um, so this is just extending
that 2 miles further south. Uh, again,
this road is in poor condition and does
require continual maintenance. And uh
this is the ultimate intent is to uh
have that entire stretch of Westview
Road/Old Highway 23 fully cement event
stabilized. You'll see another project
further in the budget that completes the
remaining gap and at that point um we'll
have a a only seasonally banned road
structure all the way from Highway 3 up
to Highway 519. Um that will obviously
allow for greater movement of uh
agricultural commodities and heavy
equipment along that corridor.
Uh couple bridge files that we have on
the docket for replacement. 77523
is located about 9 km northwest of
picture but 79595
uh is on 211 between 100 and 102. These
are part of our regular bridge
replacement program. Uh they're reaching
the end of their life cycle and require
replacement. And as always with our
bridge file projects, we do apply for
STP funding. And that's that competitive
funding I spoke to earlier. If we get
it, great. Maintains our reserve. Um if
not, then we just draw from our reserve
to fund those projects.
And the last one on here. So this one
did get bumped up a year just due to
some um deterioration that we
experienced on the picture golf course
road. I see a spelling error there I
need to fix. Um Range Road 215 that goes
from Highway 25 south to the Picture
Golf Course Road. Uh, as I just
mentioned, there was some uh significant
deterioration on that road this past
year due to some hauls that occurred and
uh just to fix that section. There was
probably at least a $200,000 touch out
of operations. So, uh we wanted to bump
that up from 27 to 26 to take care of of
that road and not put $200,000 into a
road that we're planning to replace a
year. Uh anyway, so
uh so at the bottom we've got our total
funding. Oh,
>> yes. Riveridge Road.
» yes. Riveridge Road.
>> Oh, sorry. Thank you. River Ridge Road
» Oh, sorry. Thank you. River Ridge Road
Rehabilitation. Of course, that's uh in
your neck of the woods. Thank you for
pointing that out. [laughter]
>> Yes.
» Yes.
Um so, River Ridge Road, uh again, we're
proposing to do the cement stabilization
and that's going to be from the Highway
3 intersection. So, as you come off
Highway 3, there's a little short gravel
section, then it turns to Ashvalt. We're
going to do that whole section from the
intersection all the way down to the end
of the ashvault. uh at Township Road 92.
And uh what that'll provide is a uh hard
surface road all the way from Highway 3
onto Riveridge Road accessing. There's a
diesel repair shop there. There's
headwater equipment and there's Elorado
RV. That road as well is currently
permanently banned right now. And with
this, we'll be able to take off that
permanent ban and only have a seasonal
ban applied to it.
» Is there any questions on 26?
>> Thank you. So that does that mean it
» Thank you. So that does that mean it
goes all the way to the research station
road or
>> um close to it? Yes. So that the
» um close to it? Yes. So that the
ashvault ends
>> so there's that little subdivision just
» so there's that little subdivision just
south of Headwater Equipment kind of on
the side of the hill that residential
subdivision
>> about to that intersection is where
» about to that intersection is where
we're going. We're going to pull it just
past that intersection.
>> Okay.
» Okay.
>> Yeah.
» Yeah.
>> Yeah. the the hard surface ends
» Yeah. the the hard surface ends
basically right at the at the south end
of headwater almost exactly right there
and then it goes back to gravel at that
point.
So I drive it weekly.
So then just a couple other questions on
the McN road. When you say rehabil
rehabilitation, does that mean you're
going to rebuild some of the road
because uh um that quarter that's on the
south uh east side there? Uh I don't
know why it never had so much water in
it before in its life, but it is just
softening that road up something
terrible. Mhm.
>> And without correcting that problem, I
» And without correcting that problem, I
don't know there's a lot of point in in
doing that road until that's kind of
fixed.
>> Yes. And I do plan specifically with
» Yes. And I do plan specifically with
that road to to do some of those deep
strength repairs. So instead of going a
foot down with that cement
stabilization, they can peel away a foot
and do two feet of cement stabilization
to bridge that underlying saturated
layer. So if I know the location you're
talking about and uh we will definitely
address that.
>> It's the same where they turn into the
» It's the same where they turn into the
feed lot there. Yep.
>> Okay.
» Okay.
>> Absolutely.
» Absolutely.
>> And then on the picture golf course
» And then on the picture golf course
road, uh, does that include going to the
campground or is the campground approach
before the end of the road there? I
can't remember.
>> Yeah. So, it does include the approach
» Yeah. So, it does include the approach
to the campground. The end of the
ashvault goes just past the campground
and the entrance to the golf course. So,
that that uh cement stabilization will
uh go past both of those entrances.
>> So, is that the end of the road there or
» So, is that the end of the road there or
does it go further south? Uh there's a
gravel portion that goes further south.
>> Is it quite a ways?
» Is it quite a ways?
>> I I can bring it up on the map if
» I I can bring it up on the map if
>> Well, I just wondered if it if there was
» Well, I just wondered if it if there was
just a short little piece
>> half mile if it was point Maybe we
» half mile if it was point Maybe we
should do the whole darn thing, but I
don't know what's at the end of the
road. So
>> I think there is a single feed lot at
» I think there is a single feed lot at
the end of that road, I believe.
>> Not a feed lot.
» Not a feed lot.
>> No, it's abandoned.
» No, it's abandoned.
Okay.
>> Okay.
Okay. And then just uh a bit of a
funding summary. So at the bottom you'll
see our funding sources for the 2026
program. Got about 8 uh 1.8 8 million
out of CCBF, just about 2.3 out of LGF,
and almost 3.3 out of the Bridges and
Paved Roads Reserve for a total program
value of 7,350,000
for 2026.
Moving on to 27.
So, the first project on the list here
is Township Road 92 overlay, otherwise
known as the Walmart Express. So this is
the road that uh connects Cole down the
city of Lethbridge. Um so this project
would entail doing an overlay from 43rd
Street to Range Road 21-2.
So this is a mile of that 3M segment and
it is projected uh through our asset
management program to require that
overlay to preserve the existing
subgrade of the road uh prevent water
infiltration and extend the life of that
uh particular segment of roadway.
The next one is Range Road 20-5.
So, this is the portion of road just
south of Highway 512 that goes to the
Vista Meadows subdivision. Uh, again,
this the existing road is in fairly poor
condition, requires continual
maintenance, and uh felt that cement
stabilization was the best method of
rehabilitation for this segment of road.
And it'll be about 1 kilometer long.
It'll go past the entrance to Vista
Meadows uh a little ways a couple
hundred meters. I believe the Ashefalt
ends on that segment of road. Uh that
one as well uh to Lauren's uh point does
have some soft spots in it that we will
address through design and construction.
Ensure that uh that subgrade is
appropriate for the traffic loading that
it'll experience.
>> Is that banned, Deon?
» Is that banned, Deon?
>> I believe it's currently banned. Yeah,
» I believe it's currently banned. Yeah,
I'm pretty sure it's permanently banned.
Yeah. And moving forward with that uh
after that uh application, would it
continue to be then probably or
>> just seasonally banned like the rest of
» just seasonally banned like the rest of
our roads? Yeah. All and I'll just thank
you for bringing that up. Whenever we're
doing these cement stabilized roads,
they will be a seasonally banned only
just like our paved roads. They do not
need to be permanently banned anymore.
>> Okay, cool. Thank you.
» Okay, cool. Thank you.
>> The next is uh Range Road 20-5. This is
» The next is uh Range Road 20-5. This is
just a double chip seal project. So
otherwise known as the Ffield
subdivision road um between highway 5 or
sorry highway 4 and 508. Um again
through our asset management program and
subsequent uh conditional assessments a
double chip seal is required to uh seal
the existing surface and preserve the
roadway and extend the useful life of
that of that portion of roadway.
One one nice thing with these uh chip
seals that we're doing is we actually
have our own pile of chip seal aggregate
in our rackus pit that we have the
contractors use. So we're able to save
some some money on aggregate crushing
and hauling because we have that source
in our rackus pit. However, I do give
the contractor the option if they want
to whatever's cheapest. If they want to
haul it because they've got a lot closer
and they give me a better price, I'll
take it. If it's cheaper to take our
aggregate, then we'll go that route.
Thanks, Mr. Chair. Sort of off topic,
but is that like a a special crush or is
that something that's a byproduct of
crushing?
>> No, it is a special product. Yeah.
» Um the next project is Shaughnessy
Sanitary Sewer Pipeline Lining.
Um so we've done we've done some sewer
pipelining this year with with fantastic
success. Uh if you're not aware of what
uh lining a pipe is, they basically send
uh a sock through our existing pipe with
resin. They bake it in place, cut out
all the services, and you get basically
another 75-year pipe out of this. It's a
brand new pipe inside of your existing
pipe. Shaughnessy is full of clay pipe.
That was just the type of material they
used at the time. So, by doing this, we
basically do not have to tear up and dig
up the road to replace a pipe. We line
it and uh and we're saving a lot of
expense with not having to to do any
other repairs on the roadway itself.
» Thank you, Mr. Chair.
>> Have you guys used that before?
» Have you guys used that before?
>> Yes, we have.
» Yes, we have.
>> And have you had good experiences with
» And have you had good experiences with
it?
>> Very good. Yeah, it is it is something
» Very good. Yeah, it is it is something
that uh we've used for a few years now.
I know other municipalities use it as
well with with uh great success. So um
yeah, it is a it is a very a very
cost-effective product and very
unintrusive uh way of rehabilitating our
sewer infrastructure.
>> It's spectacular technology.
» It's spectacular technology.
>> It is. Yeah.
» So the next one, a couple bridge
replacements, uh 79597 and 79618.
597 is located uh on 20-5 just north of
102 and 618 is located on 211 just south
of Highway 512. And like our other
bridges, they're projected to reach the
end of our use their useful life and
will require replacement in 2027. And as
always, we will apply for stip funding
to uh to try and get some of that
competitive grant funding.
The next is Township Road 90 or Mountain
Meadows Road, Walsh Drive, whatever you
want to call it. Uh isolated repair and
double chip seal. So last year um
operations conducted some soft spot
repair out there as there was some uh
issues with some heaving ashalt. Uh this
project proposes to do a little bit more
soft uh isolated spot repair primarily
at the west limits of that road. As the
ashalt transitions to gravel, it is
getting chewed up and it's kind of
eating back towards the east. So
reestablishing that and uh doing a chip
a double chip seal layer on that
ashvault preserve the surface and the
subgrade and uh and extend the life of
that roadway.
» Um just a uh I got a significant number
of thank yous from the Mountain Meadow
people about the soft spot repair that
was done because that's something that
they've uh had a major concern about for
years. So yeah, but yeah, I got got some
good positive feedback from that. So
>> good, good to hear. Thank you.
» good, good to hear. Thank you.
>> And then the last one is some upgrades
» And then the last one is some upgrades
to the Tiffen Basin. Um so as I kind of
mentioned before with the McNal Road, we
do have a Tiffen Basin storm water
drainage plan. Uh if you're familiar
with that area, when we do get severe
rain events and melt events, there is
significant flooding in that area. So,
this project will help alleviate some of
that flooding and it includes the
installation of 300 m of 1500 mil
pipeline. Uh, if you're familiar with
the tiff and dairy, there is an existing
1500 mil concrete pipe that does take
some storm water drainage, but it is
undized and the report that we had
completed uh suggested another 1500 mil
pipe is required to accommodate the
storm water flows in that area. So this
project is to essentially install that
that 1500 millimeter pipe to reduce the
impacts of overland flooding in that
Tiffen basin. Uh that is the downstream
reach of this basin. So as we progress
uh through some of our other drainage
projects throughout the years, we'll
work further upstream to to help
alleviate some of those pressures. Our
funding summary for 27, uh, just over
500,000 from CCBF, almost 3 million from
LGF, and almost 1.7 million from the
Bridges and Paved Roads Reserve for a
total program value of 5.17 million.
Any questions before I go to 28?
So 2028 Range Road 21-1, otherwise known
as the How Road overlay. Um, this is
again a uh part of our asset management
program. We need to do an overlay on
this road from Highway 4 to 512 to
preserve the existing ashalt and base
structure and um extend the life of this
road and that is uh 4.4 km in length.
a couple bridge files 79599 and 600.
They are located on 20-3 and Township
Road 102. They're kind of right beside
each other. So, we're going to engineer,
design, and tender these out at once
because they are literally right beside
each other. And we should see some
savings in bundling those projects
together.
Um, and yeah, that is just part of again
our regular uh bridge replacement
program and we'll apply for step funding
for those bridges as well.
And then the next one, as I alluded to
before, is kind of the final phase of
that Westview Road/Old Highway 23 cement
stabilization and double chip seal. So
this includes the portion of Township
Road 100 A or 10-0 from 234 to the
Palister School entrance and then west
and north towards 102 uh through cement
stabilization and double chip seal. And
this will then close that gap between
the north and the south sections, making
that whole corridor cement stabilized
and a uh only seasonally banned road.
» Oh, thank you
there.
And for 28, our funding is 350,000 from
CCBF, 3.19 million from local government
fiscal framework, and 1.89 989 through
the bridges and paved roads reserve for
a total program value of 5,430,000.
» Thank you. Um so just on our road going
north of 512 what's the condition of
that road that that pavement is it
pretty good yet or not or
>> so north of 512.
» so north of 512.
>> Yeah,
» Yeah,
>> that is the Corteva road I believe
» that is the Corteva road I believe
>> it is.
» it is.
>> Yes. Yeah, we did an overlay on that 34.
» Yes. Yeah, we did an overlay on that 34.
Yeah, somewhere in there. So that the
we've got at least another 15 years on
that road. Yeah.
Going into 29.
So again, we've got Township Road 92 on
here, which is the known as the Walmart
Express. So again, another overlay, and
this is from the end limits from the
previous project to the Broxburn Road,
completing two miles of an overlay. Uh
again this is scheduled as part of our
asset management program uh to preserve
the existing pavement and road structure
thereby extending the life of the road.
Uh Shaughnessy infrastructure
improvements which is water storm water
and road improvements. Pretty large
project for Shaughnessy. Uh this one
includes the reconstruction of first
street and a portion of third street and
Shaughnessy. Water manes and service
connections will be upgraded along first
street and third street and storm water
retention ponds will be constructed. So
this is another phase of the of the work
that we're doing in Shaughnessy. I
talked about the sewer lining before. If
you recall this project was further in
um it was further up in the budget
because of the information we had
indicated there was some PVC pipe out
there. Uh further investigation
concluded that we had those clay tile
pipes. So instead of ripping up the
streets as I alluded to before, we lined
those. We'll get all the sanitary sewer
lining complete and then we'll come in
after address the water manes where we
need to because there are some water
manes in Shaughnessy that are 4 in and
not 6 in which means you can't have a
fire hydrant. So for fire protection
purposes uh we need that 6-in water
line. There's not a lot of 4in in
Shaughnessy, but by upgrading to 6 in,
we'll be able to meet those standards.
And uh then also the storm water
retention ponds as Shaughnessy does not
have uh any current storm water
management just and you'll notice some a
lot of our hamlets don't have that. They
are grandfathered. Um basically
nowadays, if you were to construct those
subdivisions, you need storm water
management because our hamlets are so
old. It isn't a requirement. Uh, but it
is a best practice wherever possible to
try and mitigate the the storm water
flows and problem areas that we have in
some of our amlets.
>> Deon, just a question.
» Deon, just a question.
>> Thanks, Deon.
» Thanks, Deon.
>> I've been called worse.
» Now, I'm really off my game. Um,
[laughter] when we're doing the the
doing the water revitalization in
Shaughnessy, are I'm assuming the water
lines are below the sewer lines in terms
of depth. Is there when we're doing
that, is there going to be any
disruption to the sewer lines that we've
lined two years earlier?
>> Sorry, the water line is above the sewer
» Sorry, the water line is above the sewer
line.
>> It is above the sewer line. Okay. Yeah.
» It is above the sewer line. Okay. Yeah.
Well, then never mind. [snorts]
Okay. And then the final one for 2029 is
bridge file 79865. Again, part of our
regular bridge replacement program. Uh
it's just a few miles northwest or
northeast of picture but uh again we
will apply for step funding for that
project. Our funding summary CCBF is uh
1.18 million LGF 3.4 million bridges and
paved roads reserve 1.4 4 million and
the utility reserve for that Shaughnessy
project at 1.3 million for a total
program value of 7.28 million.
Finally, as we get into 2030,
we've got another bridge replacement
79769
uh just a few miles southeast of
Coldale.
Again, as part of our regular bridge
replacement program, Township Road 104
rehabilitation.
So, this is up by our Nolan Hill Greater
Camp. There's a section of paved road
that goes to the east that is
permanently banned and in very poor
condition. And what this project would
do would uh basically cement stabilize
and double chip seal that road as a lot
of it is uh you have to take quite a
detour to get around that segment of
road if you're hauling full weights. So,
by completing this project again, we'll
have just that seasonal ban. And I'm
also going to pull the hard surface to
the road that heads down to the river
bottom, which is ashalt to those
acreages down below. So, it'll be a hard
surface all the way down to the bottom
there and lifting that permanent
roadband to allow for um heavy truck
traffic.
>> Yeah. Thank you, Mr. Chair. Uh why is
» Yeah. Thank you, Mr. Chair. Uh why is
that a hard surface road? Why is it p I
I honestly don't know councelor Vanesson
why it was paved to begin with. Um but I
just know it's it is fairly poor
condition and it is permanently banned
which as I alluded to before does cause
quite a detour for that heavy truck
traffic trying to access Highway 45.
Sorry, I don't know why it was paved to
begin with.
>> Well, it seems to reflect the special
» Well, it seems to reflect the special
interest or so versus general good. So
thanks.
Well, the old part going to the river
that was part of the old highway, was it
not?
>> Correct.
» Correct.
>> Yeah.
» I don't know. Yeah.
» And then the last project for 2030 is
Township Road 84 and that's a double
chip seal. So that's the road from
basically where the YMCA is out to
Sunset Acres. Um basically just sealing
up the surface of that road, preventing
any water infiltration and uh extending
the life of that road. So you'll notice
in 2030 that the budget is a little bit
light. Usually in the last 1 to two
years, I try and keep I try and keep
some leeway for some projects that may
come up that may be un unexpected. Um
which is why you're seeing a total
program value of 1.51 million for 2030.
And that concludes the infrastructure
capital budget. Is there any questions
from council?
>> Thank you. I do have one. In 1984
» Thank you. I do have one. In 1984
when the SMRD rehabed the main canal
there and put all those new bridges in.
Uh about four years later than that,
they came along and they uh sandlasted
all the uh support columns and repainted
them. But the paint is really coming off
those now and they're starting to rust.
Is that is our responsibility to look
after that portion of it? Or
>> if if the bridge is owned by the county,
» if if the bridge is owned by the county,
then yes, it would be. I'd have to look
at those bridges in particular to see if
they're SMRDs or Lethbridge counties.
But yes, if they're the counties, that
would be part of Ryan's operational
budget for bridge maintenance, things
like that. Yeah,
>> because before they get too much further
» because before they get too much further
deteriorated, it would be a good thing
to
>> Yeah. Maybe I'll uh I'll maybe catch you
» Yeah. Maybe I'll uh I'll maybe catch you
after and we'll take a look at those
bridges. Yeah, if that's okay.
» Oh, I guess I didn't go through the
summary.
Um I realized after I did the uh
operating forecast it probably would
have been helpful to have this next
slide um just in terms of a visual. So,
I'll have to add that uh to the
presentation for the next update just
given uh the complexity of the market
access network and I've had some trouble
trying to wrap my head around what how
this program works. So, um bear with me
as I try and walk through this and
explain because it's a bit complex. But
when we looked at that operating
forecast previously and we talked about
that 500 hall route, it's essentially
one component of the market access
network because there's essentially
three different revenue streams that
contribute to this program which then
flows as a funding source to some of the
proposed programs that you saw that
Devon just talked about in terms of
infrastructure capital projects. So this
is the business tax that we talked about
is asking where that was shown. And so
when I was demonstrating the property
tax um revenue versus the requisitions
and the assessments um this business tax
is about approximately $ 1.5 million.
It's on a per unit headcount
um and is separate from property taxes.
And so that's one funding source to this
market access network program. We've got
the cap levy which approximately
contributes
150,000 which is um gravel hall and
andor sand. And then we have the
um how route farmland levy of
approximately 500,000 of property taxes
that contribute to this um network as
well. And so all of those roughly make
up the 2.1 million um per year which is
uh broken down further between the loan
payments that are connected to the hall
routes um which is approximately $75,000
per year. And then the remainder of that
is transferred to the paved roads and
bridges reserve to be used for future
capital projects. um some of which Devon
talked about previously over 2026 to
2028.
And so that just gives kind of a visual
of all of the components that contribute
into this uh program. Um and then it
just is again there included in the
slides is just a summary of kind of the
overall program and the breakdown
between the debt and then the remainder
that's transferred to the reserve. So
anything over and above the 2.15
would be and net of the loan payments
would be transferred to the reserve. So
if more dollars are collected than the
2.15, it would just be transferred to
the reserve. So that is the components
that make up the market access network.
I just wanted to note that because
there's some obviously these are
included in the budget, but it's kind of
its separate own little um
funding source for capital projects
related to the hall routes.
» Thanks, Mr. Chair. And that then
explains why we had that $500,000
breakout at the beginning because that's
the farmland levy that actually gets
transferred into that fund. Yeah.
Devin, can I ask you one question? Sure.
And it's yours. Sorry, Ryan. with the um
sorry the one you spoke of last or
second last sorry I guess the township
road the 104 rehabilitation just how you
have that structured or you have how you
have that set out in 30 is there
is there a way that that could move come
forward sooner and the only reason I say
that is because I it's just a massive
bottleneck in that corner of the county
where you have any producer who's coming
out of the north east part of the
county. That is the last road before the
river, the last road to get to 512. And
I think the unintended consequences of
banning that have just really
exacerbated things on that 2 miles south
there and then down further south yet.
>> Is there I guess is the
» Is there I guess is the
um is there any data to or any would
suggest it should be brought forward or
is there an opportunity to maybe
entertain moving that forward in the
budget?
>> So I think there is an opportunity. I'm
» So I think there is an opportunity. I'm
just going back to the carryover
projections and when I look if we were
to fund that from the um bridges and
paved roads reserve uh we could we can
certainly do that. I've got a estimated
value on that one of just over 700,000.
So we could do that potentially if
council wanted to next year and just
that uh bridges and paved roads reserve
that graph line would just go down by
720,000 but we do have funds in the
reserve to complete that. Um I know I
had a lot in 26 for cement stabilization
about 10 and a half kilometers but uh we
can certainly add that 1.3 km to that
list and get it done next year if it is
causing uh you know significant
operational challenges like you describe
>> and I I I don't I just know that one a
» and I I I don't I just know that one a
little more intimately because people
have been impacted by it and been very
vocal about it. I I don't have a good
sense of how it uh ranks priority-wise
amongst these other priorities, but I
would suggest that three more summers, I
think the the degradation of those other
roads and the the damage that we're
going to see on some of those other
roads will probably far exceed that
$700,000 in that investment if there is
a way to move it forward. I again
without having the the data before me I
I don't want to you [clears throat] know
uh get ahead of myself but I think it's
a worthy discussion at least. Sorry
Cole.
>> Um so one thing that will be coming
» Um so one thing that will be coming
forward for discussion just because of
how that reserve was originally set up
was we cash flow. So we have a cap on
that reserve that sometimes gets
exceeded based on the timing of these.
So, we're spending to bring it in to to
line, but depending on when we collect
and when we expend is created. So,
that's a conversation we need to have
with council at one of the next couple
council meetings. Um, but based on that,
it doesn't hurt from a cash flow
expenditure standpoint, like just purely
on the finance side, and I don't want to
speak to Devon's operational capacity.
On the finance side, to move one of
those projects up is probably a good
idea for us anyways to to bring that in.
whether we can handle that and do that
and if that's the right one I I can't
answer that question but
>> sorry
» sorry
>> I was just gonna agree with you because
» I was just gonna agree with you because
when anybody's hauling lentils over to
Vera there they never go down that road
they go the other ones it's pretty hard
on them
» thank you Mr. Sure. I was I I basically
I was going to concur on that. I like if
there's something especially on that
particular road because of its location
because it is a bottleneck on that.
Not getting to that might end up causing
significantly more damage because
everybody just they move to the one
south and pound the crap out of that one
then move to the one south and and and
there's a cascading effect. My question
to you, Devin, was when you say next
year, do you mean 2026 or 2027?
>> 2026.
» 2026.
>> Okay.
» Okay.
>> Yes.
» Yes.
>> And to answer Cole's question, we have
» And to answer Cole's question, we have
capacity to to add that to our list.
Absolutely.
>> I I would definitely support it if there
» I I would definitely support it if there
was an appetite and and a willing or an
ability to do that. I would definitely
support it.
>> I can make that change if that's
» I can make that change if that's
council's wish. Absolutely. I would
support that.
Thank you.
>> Okay,
» Okay,
I know Kevin's
just so we're clear. I
county [laughter] just so we are crystal
clear.
» Thank you, Deon.
>> Thank you.
» Back for more.
All right, let's get into everyone's
favorite. So, uh, fleet capital
projects. Probably just want to give a
bit of overview. Actually, I'm going to
I'm going to flip to this slide um to
give a bit of a highlight. So, our 2026
was approved uh earlier this year in
October October [clears throat] 1st,
which allowed us to order some of the
items that had long lead times to ensure
that they would be available for our
2026 season. So, thank you council for
for that. But it also allows us to
dispose of some of those items uh at the
high demand which is typically in the
spring. So we get highest value for uh
salvage. But what I did want to
highlight on this particular slide is
and we didn't discuss it in in any
detail in October when we met to uh
approve the 2026 was uh the 16% decrease
in actual capital spend from 2025 to
2026. So, that was uh very purposeful um
as we've um looked at realigning and
resetting um where we're at with our
capital equipment expenditures. If we
would have stayed on the path that we
were at historically, uh we would have
spent every dime and then some of our
capital equipment reserve by 2030. So,
it was unsustainable. And so what you're
seeing uh for 2026 which was already
approved and then the proceeding or the
the the following four years is quite a
flatline as we are working through
extending the life of our capital
equipment. And I'll explain of some of
the strategies that the team has taken
not just going forward but this last
year uh under Shaun Gerschnik as our
fleet manager when he first arrived with
the county has has started some of this
change.
um
we've been able to do this. So I I asked
the team to look at this. Um
and the reason we're able to do this is
just a different approach. Um so really
we've we've shifted we've shifted to a
needs-based approach, collaborative
discussions with our operators based on
operational needs in the field. Um to
identify our highest priority equipment
versus past practice had been was just
no matter what seven years or so many
hours just flip it no matter what and
those days are over. It is part of the
conversation but it's more meaningful
conversation in terms of really
prioritizing what do we need that has
the biggest value for our operational to
provide services to residents also
managing mis uh risk mitigation and our
operational needs. This provides us more
flexibility with decisions focused not
only on on the value of what we're
purchasing, but the value added to our
operations and to residents. The data is
still an integral part of our
decision-making matrix and includes the
following factors. Factors such as age
of the unit um or the years uh so usage
of the unit which could be hours
depending on the the type of equipment
and how it's monitored or the
kilometers. Um, also looking at our
overall maintenance costs for the
lifetime of that equipment. Um, the unit
cost versus the market value of a new
unit is something we're always looking
at. If we invest X, do we get another uh
another year out of that piece of
equipment and what's that balance or
risk of investing that money so that we
can ensure that that that equipment is
actually still available.
Uh the other
the other the other one to keep in mind
in terms of that cost maintenance and
I'll use the example of a a grater uh
typically our graders uh have been
purchased and had been flipped on a very
consistent basis at seven years
regardless of hours of use just
regardless if they were good or bad to
us. Um we had a a grater that had a
complete engine repair uh done uh during
that warranty. And so we had the
conversation to say, "Okay, that was
done in 2022.
Uh, it's a very new grader still. Don't
just flip it because it's almost a brand
new grader. We can almost reset our
amateurization period and extend that
out. So taking a different approach
instead of just arbitrarily just always
flipping it has allowed us to flatten
our spend so that we can catch up so
that we can try to close the gap of our
equipment rental rates with what we're
actually spending.
Um, another piece we look at uh in
determining uh capital equipment
investment and uh how long we're keeping
these or using these pieces of equipment
is the overall performance and
reliability while they're in our
ownership. Uh because we're always
looking at our availability,
the impact of downtime, frequency of
breakdowns, and the overall uh cost to
run these. So, it also provides the the
flexibility for us. if if it's a lemon,
we will we will walk away from that
asset as soon as it's financially
meaningful to so that we don't bear that
additional risk once something were to
come off of warranty. But um I'll use an
example of a a greater earlier this year
which was under warranty. the the vendor
themselves was over $30,000 in on trying
to solve an issue that they could not
solve and the downtime for that piece of
equipment was almost 3 weeks. Um
fortunately we have some contingency
with spare graders so that we don't shut
down our operations, but this was a
warrantied item. Um
which is super scary because they didn't
even know how to fix it. So there's this
balance of of availability is is a key
point because our season's also very
small in the in the summer season that
we need to be able to run or we have
that opportunity cost where we're not
delivering services. So so holistically
we really have changed the approach
where it's really decision based on
value for dollar but operational impact
but overlaying the data and looking at
it from every way and that's how we've
been able to flatten this out. Um I'll
use one more example and and then we can
um kind of go over year by year was be
when we met in 2025 after we had the
approval for the 2025 capital spend we
looked at what was on there and for the
first time engaged um our foremen those
actually doing the work saying from
their perspective and the work that was
planned for the 2025 season where we get
more bang for our buck and at that point
uh based on that conversation
Um, we determined that replacing a low
hour D7 dozer offered much less value
operationally in terms of bang for your
buck than addressing more pressing
operational needs. And so we then
refocused or redirected those funds to
purchase a new GPS equipped excavator
which uh dramatically improved our
Culver installation efficiency and a
dedicated water truck to eliminate the
disruption caused by older tankers
downtime. So allowing that flexibility
and actually looking at what are we
trying to accomplish and what's the most
cost-effective way to do that is really
how we're approaching this plus the
data. But these changes uh that we made
with 2025 alone uh improved our culvert
work for drainage gravel division's
capacity to improve flexibility across
operational crews and enhance service
delivery to county residents. Capital
investments directly impact service
delivery and crew productivity. So
that's the lens we're coming at. Just so
just kind of provide an overview of of
how we're doing this. The other major
shift in our fleet management is how we
manage our graders. So over the 2026
season, we'll have 14 graders. And when
someone asks you how many graders does
your county own, that's like someone
asking you how big is your ranch? Um
that's a lot of graders. That's a lot of
capital investment. But it also has the
biggest impact to residents in terms of
quality life and our transportation
network. So when we looked at how can we
maximize the life of these u to get
dollars out of them
the historical was seven years flip them
regardless of ours usage. We've extended
that where our target is 10 years and by
pulling and stretching that out um
that's a substantial uh cost savings in
terms of our capital investment. We're
confident in man uh mitigating risk as
those fall off of um warranty after the
seven years that we're very mindful of
the ones we're keeping. But we're on
track now where it's every year for the
next 10 years, we have a greater that
slowly falls off one at a time instead
of multiples. And so keeping in that
sequence, we're confident that we
continue to maximize our capital
equipment investment specifically in
greater because they do represent such a
large part of our fleet and capital
investment.
Um,
let's go back to this, I think. Any
questions I guess to this point? We
talked a lot.
» Not a question, but a comment. Um, I'm
sure you've heard this from myself and I
know that you've heard this from um, one
of our new old counselors in the past,
but uh, I I just want to extend my
appreciation for the thought process
that goes into this as opposed to, you
know, just look at the piece of
equipment and look at the flat line on
it and go, well, doesn't really matter
what it's been great to us or it's been
bad to us. Just move it along. So um I I
appreciate the effort that
administration has put into this because
it is a huge huge expenditure and and
I've said all the way along that I I
thought we needed to find ways to drive
better value out of it. So u yeah I
would just like I said like to extend my
appreciation to administration for for
going down that path. Appreciate that,
John. And again, my shout out to Shauna
O Gchnik who really kicked this off when
he was hired uh almost two years ago
with his background in fleet management
and then Sean McCrae who is our current
fleet coordinator that do carry on this
work. Uh we have an amazing software
system called RTA where we track all of
the work and we link the work
maintenance and repair activities to
every piece of equipment and that helps
us tell that fleshed out story. That's
the data element which we then overlay
with hours or kilometers or fuel usage
that helps us make these you know guided
decisions of how best to uh maximize our
capital equipment investment. So um
maybe just one more plug and then then
we can go through this is you know why
why did we have to slow the spending
because until 2025 we just
systematically had not um addressed the
dramatic increase of capital equipment.
So postcoid the lead time on some heavy
equipment was year if not years
and so a grader for example our standard
divisional grader less than five years
ago was about $350 $400,000 and now that
same greater same functionality
is closer to 7 or $800,000. So when such
a major piece of equipment that's
fundamental to our service delivery
essentially doubles, this is why we
required a reset because we have to live
within our means and and it just we had
there have been no reset until 2026. So
that's why you're seeing what you're
seeing with the trending over the next
four years.
>> Question.
» Question.
>> Sure.
» Sure.
>> Yeah. Thank you, Mr. Chair. Do you mind
» Yeah. Thank you, Mr. Chair. Do you mind
commenting on your enterprise program
and the the 12 trucks and it shows up
year after year um working happy with it
and just comment on it a little?
>> Sure. Absolutely. I have a whole section
» Sure. Absolutely. I have a whole section
on that so we can 100% move into that.
So enterprise uh the enterprise fleet
program that the county started in 2022.
um how it got to that point. There's
other jur other jurisdictions nil county
and the MD of Taber uh did RFPs at that
time
for fleet management and both those
entities actually decided best value to
to go to an enterprise. Enterprise is
part of the canoe procurement under RMA
program. Essentially, the easiest way to
look at Enterprise, it's like a futures
market for trucks where we purchase the
vehicle uh direct from manufacturer
through Enterprise, maximizing our
municipal uh discounts and then we sell
them back um at a very coste effective
price point. Um I can provide you an
example. our 2022 fleet when we we
purchased those vehicles, the average
vehicle for the trucks was $48,000.
And after that 12 month term, we the
resale average on each of those was
$41,000.
So that average around there was just
over $500 uh a month to run those
vehicles, which are fully warrantied.
Typically in this transition, the only
thing you pay for is fuel. Oil is
actually oil changes are actually
covered uh under warranty. So you're
paying for fuel and windshields. We
avoid any other additional maintenance
elements such as tire repairs typically
depending on the mileage on those
vehicles. So it is a very coste
effective um method uh of running a
fleet. have heard very positive feedback
from other people that use the vehicles
in terms of the safety and reliability
as well.
Um
what else?
So we have one of the thing one of the
advantages with enterprise um there is a
a monthly uh admin fee. It's about 2% no
that's yeah 1.9%
um on a vehicle that we pay to
enterprise and essentially that's for
them to manage our fleet. So in 2026
that dollar will be about 14 or $15,000
and that provides us with all the market
access of what supply and demand is what
are the right trucks to buy so that we
can sell them at the highest value um
when we roll them at either a 12 month
24 months or if we choose to extend that
or even purchase the vehicle outright in
the end. So full flexibility on what's
coming and going um with this program as
well which is very valuable for us as a
county uh that has good value added
» follow up with that then
that's good information I'm not
understanding your chart then
>> the proceeds of the sale of equipment
» the proceeds of the sale of equipment
think I have it that not all of them are
deducting this proceeds of
Which
>> am I missing something?
» am I missing something?
>> Which specifically are you looking at?
» Which specifically are you looking at?
>> So, well, I guess that the fleet is
» So, well, I guess that the fleet is
where I started and that one makes
or is that the Oh, I guess the
replacement reserve
>> that would be
» that would be
us total.
>> Correct. So this would be this would be
» Correct. So this would be this would be
the potential value market upon selling
of those vehicles would be the 540.
And then when we go to replace those
because we buy them outright initially,
then this would be that $120,000 that
we're pulling out of a replacement
reserve.
» Thank you, Tori. Uh just a question on
when you talked about you sell them at
the end of 12 months or 24 months
whatever they agreed but then you said
if you decide to extend its life you
would have to purchase that. I I don't
know what you meant by that.
>> So I may I may have misspoke Lauren. Um
» So I may I may have misspoke Lauren. Um
we have the opportunity if if if the
market if we felt the market wasn't
strong that we could p we could outright
purchase like we could buy out the end
of that contract.
So, we already owe it.
>> Yeah. Yeah, we already own it, but
» Yeah. Yeah, we already own it, but
there's just like a
>> Yeah.
» Yeah.
>> a a top up fee on that to to actually
» a a top up fee on that to to actually
just keep it and walk away altogether
and not return it back in.
>> Okay.
» Okay.
>> It' be sort of like paying enterprises
» It' be sort of like paying enterprises
commission if they sold it.
>> That's probably the equivalent. I'd have
» That's probably the equivalent. I'd have
to confirm exactly what that number is,
>> but it it it really is worth
» but it it it really is worth
contracting. Like I said, it's about
145,000 a year to have market access in
a market of trucks of of basically it's
a futures market for trucks. And as long
as the supply or the demand is high,
then there's still value. If where there
is risk to the county is if the demand
for trucks were to drop and then the
resale value would drop accordingly as
well. Um and then at that point in time,
then we look to keep the truck Yeah.
Any other questions on that?
>> Thank you.
» Thank you.
>> Okay.
» Okay.
So, 27.
Um, we could go through all of these if
council wants or not. Um, this is based
on on what I already presented earlier
with the principles of how we're
applying and making decisions for
replacement. And we review these
annually um in terms of operationally
where do we get our biggest bang for the
buck also looking at the data and our
total maintenance and repair costs for
um all these pieces of equipment.
There's one I would like to highlight
and it's actually in 2029
and it's the it's the top one here. It's
it's labeled meal razor.
We don't want to highlight this because
this is a core piece of equipment for
our treatment of our hall routes.
Um that particular attachment which is
on a a motor graater um has no
replacement. Um that company who built
those is out of business and I think
there's only one other in the entire
province.
as we
review our hall route and our
processing. This was very purposeful
that we pushed this to 2029. Um, this
was originally slotted for uh purchase
in 2027,
but if I don't know what our direction
is going to go, I'm certainly not going
to invest an additional one and 1.2 1.5
million in a piece of equipment that a
doesn't exist, but b might not meet our
operational needs.
>> What's the mill raiser? So this is what
» What's the mill raiser? So this is what
uh what's the best way to describe it?
It chews up bit roat tills the the rod
and then injects the MG30.
>> Yeah.
» Yeah. This this because a mill razor
doesn't exist. This would be for a
reclaimer which is a mill a standalone
piece of equipment that would go much
deeper than our current 3 to 4 in. uh
and it would go up to 12 in typically
most reclaimers of that. And we would
also be able to do uh the deepbased
stabilized roads which we talked about
earlier today as well as cement base
stabilized roads with a 2029 investment
in in a in a reclaimer. And so that's
why this hinges with the 2029 that as we
look at that trial for deepbased
stabilization and continue with the
cement base stabilization roads if that
is a direction that we believe is worth
the investment. This is where that would
sit in 2029.
And then to balance out in 2030
um again total spend of of three and a
half million which is still lower than
our 2025 capital investment um for
equipment. So we definitely have
flatlined that and as I stated earlier
how we were able to achieve that was
just we're looking at things differently
and being more flexible.
There's the summary.
No other questions. I'll move on to the
municipal reserve and the parks capital
plan.
>> Ryan,
» Ryan,
>> yes.
» yes.
>> Is it still uh anticipated that we would
» Is it still uh anticipated that we would
have these discussions in September
October uh preceding budget? Is that
still the plan moving forward just to
satisfy those delivery timelines?
>> Thank you uh Reef Campbell for that
» Thank you uh Reef Campbell for that
question. Yes, we're still seeing uh
significant lead times on some pieces of
equipment up to 6 months. And so if
there's a way that council would like to
provide direction or authorization
multi-year in advance, that would
certainly be appreciated from an
operation standpoint, but
can also present again in in the fall of
2026 for the 2027
um planned expenditures for capital
equipment.
Did you have something?
>> Yeah, I was just wondering how that
» Yeah, I was just wondering how that
would fit in with the MGA whether we
would be able to do that.
» As long as there's a resolution, which
there would be in terms of the approval
and and it specifies the the date, then
we would just roll that in as a
previously approved decision into the
into the operating budget for that year.
So I think it's it's a fine approach in
terms of helping to plan for operations
and also then having that transparency
and disclosure of of the approval
in December.
>> Pardon me. [snorts]
» Thanks.
» So municipal re reserve. So this is for
uh parks capital plan. So I'd asked the
team uh historically municipal reserve
funds had had built up and not been
systematically invested back into
uh the county for the purpose that they
were
acred. So I'm going to read a little
statement here. I'm added this. Did you
have this? So nice. Thanks Haley. So
[snorts] funds are accumulated through
cash inl contributions made by
developers when subdiv sub subdividing
land. Money provided in place of
municipal reserves and the interest
earned on reserve monies must be
accounted for separately and may be used
only for any of the following purposes.
A publicly owned park, a publicly owned
or operated recreation area, schoolboard
purposes, or to separate areas of land
that are used for different purposes.
Municipal reserve funds must only be
used for municipal projects on public
lands or publicowned or operated
facilities or for the purchases purchase
of public lands. They may not be used
for projects with public characteristics
on private land or which are privately
owned or operated. So with those
parameters in mind, uh this current
municipal reserve is at
1 point well 1.2 2 million is the
projected and the eb and flow of those
monies into
uh the county is based on when a
subdivision is finalized and we get
those monies. So there's not a how much
per year people ask I've asked that
question and people ask me uh I I don't
know but what we do know is right now
we're sitting on there's over a million
dollars there that we would we need to
reinvest uh with those parameters. So,
what's presented here is a five-year
plan. Um, each year what we target is
one fairly major project. For 2026, that
major project is in Mount Meadows to
replace uh refresh that trail system.
In 2027,
the major project
or the court replacement uh in Diamond
City. So you can see that we're hitting
uh primarily our hamlets and larger
subdivisions for these reinvestments as
it has the biggest uh value added for
the most residents. In 28 the biggest
project there is a court replacement in
Monarch. In 29 uh the big project
is the play structure in Fair View and
then in 2030 Ball Diamond uh replacement
in Monarch. And then we also sprinkle in
some other uh work in the other hamlets
uh as outlined there from either
replacing or planting new trees or
amenities. Amenities meaning uh things
like as park benches, picnic tables,
garbage cans and things like that that
really uh make those spaces uh useful
and provide a high level uh experience
for individuals.
So, total projected spend um over this
uh period is $95,000.
[clears throat]
Any questions?
» All right. Thank you.
Let's do that now.
>> I'm going to entertain a motion to go
» I'm going to entertain a motion to go
into a close section uh close session
section 19 ATIa
uh harmful to third party business
interests. We just have something that's
rather emergent that uh to speak to. I
think it'd be good to have that
conversation especially while still
here. So, someone make that motion.
Thank you, Kevin. Uh Kevin moved to
enter close se session at 3:17. Is there
any discussion?
Thank you. Um so just in terms of
continuation with the capital plan we
just want to look at the information
technology capital items. Uh so in in
this instance the biggest uh impact in
terms of capital projects is what we
talked about previously a little bit
with the financial system in terms of
replacing our ERP. We're proposing that
comes from uh the administration reserve
although that will significantly draw
that reserve down and it will it is also
the reserve that we use for any kind of
facility
um maintenance requirements should
something be unexpected or um
significant in terms of of uh rehab or
maintenance of the buildings. So just
wanted to highlight that it it is a an
expensive um project but um it is where
we are in terms of proposing it in the
capital project. Um and then the rest of
them are smaller
um
various kind of server replacements and
different capital projects related to it
um and the needs to ensure we sustain
our stable systems and uh support going
forward. So this just highlights a
summary of all of the proposed capital
projects related to information
technology within the next five years.
And that brings us to the end of our
presentation. Unless Cole has something
he wants to add.
Thought you were gonna give me a fist
bump or something. [laughter]
I guess a question for council is uh so
with with what has been uh proposed uh
the requirements and then those
contributions to reserves um leads us to
that 3%
uh or the projected 3% after growth. Um
I guess I would be frank and just ask
how how we are with that and and if we
think that that's adequate. uh moving
forward when we talk about how we're
contributing to our reserves in the
future. Um
is that I know the term modest I I I do
agree with the term modest given some of
the pressures that we're facing, but
maybe just your overall any comments or
thoughts on that and any any concerns,
questions, anything that you'd like to
see brought back, any further
discussion? I would open the floor. You
want to go ahead and Yeah.
Yeah, when I saw the 3% I thought, well,
this is that was very positive. I just
uh sort of I guess my concern again
would be around the reserves we've
talked about. We've been using them
quite a bit over the last few years. So,
it's just making sure that we have we
have an adequate amount in there. So,
and I understand we're not fully
refunding things, but it's just it's
it's trying to find that balance and
it's fair to fair to us and fair to our
rate payers, but looking big picture
down the road to make sure that we've
we're in a good place. So, if it's, you
know, one year where we're not
contributing enough, but I know over the
last couple years, we've continually
talked about we need to refresh our
reserves or replenish them. So, that
that's my only concern. So,
[clears throat]
>> uh thank you, Mr. Chairman. Uh just in
» uh thank you, Mr. Chairman. Uh just in
response to councelor Ser's comment
there, I I think it's there's always a
bit of a a tugof-war there and planning
for the future and sustainability and
managing sustainable growth and we've
tried to strike that with this. One
thing I will note um and I I think it
was on slide 21 um but you know we have
the starting balance and while that
technically we have um about $2.5
million more going out than going in I
think it is also important to note that
3 I think it's 3.4 million of that is
the two is between the gravel crushing
and the capital expenditures for fleet
that are not annualized. So if I look at
the amount of money going into reserve
versus out over a period of time, I
would say that our contributions are
actually higher with that removed than
the outgoing knowing that some of those
are one-time or costs that we then go
and and make those contributions in year
two, three, four in the future. So yes,
we would also I mean it it improves our
flexibility and everything else love to
have more in there. I think this was us
trying to strike that balance to to
maintain those levels.
Yeah, I'm not not wasn't criticizing it.
I just it was just a commentary, but I
think I appreciate all the work you've
done because I knew we knew coming in
that there was going to be some tough
decisions and uh to Tori's point earlier
on like I really appreciate all the work
the staff's done. I said we came here
and we see all this documentation, but
the process and the time it's taken just
to get this to us is amazing. So, I
really appreciate it. And then like it's
the fifth year I've done this. So, this
there's been a lot of heavy lifting here
in tough times and I again the staff,
your staff and the whole team has done a
great job. So it wasn't don't take it as
a criticism. It's just a commentary.
Yeah. And I just want to add, I mean,
Haley and Patrick and the team did a ton
of work, but I also want to give a
special thank you to Justin who I mean,
did did a heavy lift on this um really
dug through a lot of the historical
records, helped us um make a lot of
these changes and transition. So, just
on on that note for what Lauren said, I
mean, I I you're looking at me when you
said thank you and and I feel very much
like you should be looking at everybody
else in this room and not over here.
They they they did I appreciate that,
Mark. No, they did they did a phenomenal
job and I just I they they should get
the credit that they deserve for for all
the work that went into this. So, thank
you to them.
>> Don't worry, the rest of us won't thank
» Don't worry, the rest of us won't thank
you, Cole. Promise.
>> We're all looking.
Go ahead, Kevin.
» So, I just want to thank you all for
everything you've done.
[laughter]
>> No, but in in all honesty, you guys uh
» No, but in in all honesty, you guys uh
you guys did awesome. Um I look at these
numbers and yeah, they there's
definitely a lot to go through. So,
thank you for everything you've done.
Um, mine is same as uh Mark here with
with the reserves. You know, it'd be
nice to have money going in there a
little bit more, but you know what? I'm
uh I'm happy with this. And the 3% like
Lauren said, too. You know, it's it's
hard to always keep asking for more, but
it also uh helps cash flow things, too.
So, I'm good with it. Thank you all.
>> Thank you, Mr. Chair. I would reiterate
» Thank you, Mr. Chair. I would reiterate
what what uh Mark and Kevin had both
said. Um I appreciate the effort that
administration has put into this. Um you
know, especially the directors and and
all the people under Cole. Um and um
yeah, in terms of terms of u reserves, I
I understand and appreciate that, you
know, we've been saving for the last
three years to spend it this year on
things like the gravel crush. Um, I
would like to get to a point where we
are putting more into the reserves on an
annual basis because, uh, frankly,
that's what we're we need to be looking
for for future generations. Um, you
know, it's nice that we're putting money
away for three-year projects, but we
also have to have to start looking at
and focusing on what we're going to be
able to need to put away for 10 year
projects, 20-y year projects, and
30-year projects. But I also understand
we need to have a balance on that. You
know, I mean, we can't uh can't expect
our uh our tax increase to be
significantly higher than it is. So, you
know, finding that balance is is
important. So, um I think, you know, we
did a good job on this uh you know, from
administration standpoint to try to find
that balance. So, it's appreciated from
my end.
» Thank you, Mr. Mr. Chair, um, good job.
» Uh, thank you, Mr. Chair. No. Um, for
myself being that this is like the my
first uh budget experience there, um, I
just want to say you guys did a
phenomenal job, you know, presenting the
information and, you know, clear and
precise and, uh, yeah, I mean, kept
everything very
wellrounded there. And, yeah, just want
to thank you guys a lot.
» Thank you. Thanks, Tony. Uh, thank you,
council, for for everything today.
Appreciate it. Uh again, just reiterate
what's been said. Thank you, uh staff.
Thank you for everything that goes into
this, especially Justin. I know, um I
think that um I've I've known Justin, we
were at university at the same time, so
I've known Justin for 20 years and uh on
and off and and I think the type of
person that has such a deep respect for
for governance and and in that deep
respect is just trying to provide
information. he would provide rather
provide you mountains and mountains of
information and have you parse through
it and feel that you're informed as
opposed to missing anything. So I always
appreciate his approach in that sense
where you know we joke about how many
slides there are but it comes from a a
really you know well-intended good place
of just wanting us as the decision
makers to have that information. So just
a a huge thank you to him and to to
everyone else Haley everyone in your
department um we really appreciate it.
Candace, I know um 11:34 getting the
ding at night that the
>> Well, it's all appreciated. Um thank you
» Well, it's all appreciated. Um thank you
very much. Um having said all that, I I
do think that as we can tell from the
tone of some of these discussions, we
have a lot of, you know, heavier
philosophical questions moving forward.
But as well as far as level of service
goes, where where we want to be and and
I think Ryan, when you and I talked
briefly, it was, you know, what what do
we want to be and where do we want to be
in three, five, seven years because I
think there's a lot of uh tough
decisions that are not only budgetary
but level of service discussions that we
have to have. So look forward to that
and just thank you to everyone for your
contributions and appreciate it.
>> Anything else? Cool. Oh, sorry. Quarter.
» Anything else? Cool. Oh, sorry. Quarter.
>> Perfect. You're good. Okay. John.
» Perfect. You're good. Okay. John.
>> Motion to adjurnn. John has moved to
» Motion to adjurnn. John has moved to
adjourn at 3:37.
Any discussion? Call the question. in
favor.