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Council faces tough decisions as it prepares to debate leaner Budget 2021

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With a proposed 2021 budget of approximately $568 million, councillors say the municipality will be making tough decisions in upcoming years. Applications for grant programs will be particularly tough this year as the municipality looks for ways to cut spending. To compare, Budget 2020 was amended in May to total $581 million.

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Many community organizations and non-profits had to cancel fundraisers this year because of COVID-19, while the pandemic and economic crisis forced businesses to cut donations and sponsorships.

Council documents show dozens of community groups have filed 101 applications for grants, totalling $49.3 million. Administration is recommending roughly $41.3 million be approved. With funding increasingly limited, Councillor Mike Allen said many groups will have to “face the reality that the rest of us are having to face” in the new year.

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The largest grant application administration wants rejected is a $7.85 million ask from the Fort McMurray Golf Club. The golf club is requesting help covering a $7.1 million loan balance from capital projects, as well as shortfalls from April’s flood and insurance from the May 2016 wildfire. 

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“I think there’s a need out there that’s never been experienced before in almost the 40 years I’ve lived here, so I have every expectation that people are going to need more just to survive,” said Councillor Keith McGrath. “We have to be mindful I guess as we go through the budget of nice-to-haves and must-haves.”

The municipality also continues cutting the tax paid by oil companies, which was 18 times higher than what urban businesses paid in 2016. That year, the province demanded the difference start shrinking to a 5:1 ratio. The tax bracket is currently 7.78 times higher and forms most of the municipality’s revenue.

With tax revenue from oil companies shrinking, McGrath believes council’s budgetary decisions will become bigger challenges for the municipality.

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“If you’ve got less money to spend you have to look within your own organization,” he said. “How can you do things more efficiently? What is the purpose of the services that we provide?”

Budget 2021 proposes $423 million for operating expenses and $142 million for capital projects.

The most expensive capital project proposed is the municipality’s flood mitigation plan. With a $44 million price tag going towards designs and construction, the project takes up 31 per cent of the proposed capital budget. A total of $65 million is needed between 2022 and 2026 to complete and maintain the project.

Another $4 million is being requested for construction of a Waterfront Park, with an extra $21 million planned between 2022 and 2026. There has been $5 million already spent on the project.

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Administration is proposing $19 million for a snow disposal site on Tower Road. The municipality has already spent $8 million on this project.

Outside Fort McMurray, $15.1 million, or 15 per cent of the proposed capital budget, is being requested to bring running water and sewage services to Anzac, Conklin, Draper, Gregoire Lake Estates, Janvier and Saprae Creek. To date, $152 million has been spent on the project, with another $36.9 million needed for its completion.

Council will begin Budget 2021 talks with the Community Investment Program on Dec. 1 and the operating budget on Dec. 2. The capital budget and any continuing discussions on the operating budget will be discussed Dec. 3. If needed, there will be an extra day for meetings on Dec. 4.

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All meetings will be held virtually and will begin at 9 a.m. The meetings will be streamed online and broadcasted on Shaw TV.

lbeamish@postmedia.com

2021 Community Programs and ProjectsRequestedRecommendation
Anzac Family Community Support Society92,50092,500
Anzac Recreation and Social Society100,00035,100
Association Canadienne Francaise de l’Alberta, Regionale de Wood Buffalo12,00012,000
Autism Society of the Regional Municipality of Wood Buffalo80,03967,700
Big Brothers Big Sisters Association of Wood Buffalo95,00085,000
BrainSTEM Alliance Ltd.4,5004,500
Camp Yogi Society1,9321,035
Canadian Mental Health Association, Alberta North East Region, 199499,23399,233
Centre of Hope Non-Profit Society of Fort McMurray99,96599,965
Community Futures Wood Buffalo100,00060,950
Conklin Community Association89,64166,470
Fort McKay Métis Community Association30,30030,300
Fort McKay Recreation and Cultural Society65,50065,500
Fort McMurray Chess Club29,9457,775
Friends of Suncor Energy Centre for the Performing Arts96,91996,919
Gethsemane International Assembly Wood Buffalo o/a Rehoboth Alliance50,00037,375
Girls Incorporated of Northern Alberta Society89,63389,633
King’s Kids Promotions Outreach Ministries Incorporated99,96699,966
NorthLife Fellowship Baptist Church of Fort McMurray74,07056,670
Pet and Wellness Society21,55020,050
Saprae Creek Residents Society31,00030,130
Some Other Solutions Society for Crisis Prevention225,000182,250
St. Aidan’s House Society100,000100,000
Support Through Housing Team Society (STHT)100,000100,000
The Children’s Centre Non-Profit Society of Fort McMurray65,28265,282
The Fort McMurray Boys and Girls Club100,000100,000
The Fort McMurray School Division30,14517,845
The Governing Council of the Salvation Army95,19233,000
The Hub Family Resource Centre99,59399,593
Willow Lake Community Association6,6615,961
Wood Buffalo Food Bank Association134,205100,000
Wood Buffalo Safe Healthy Community Network121,000121,000
Wood Buffalo Senior Support Society21,00021,000
Youth With A Mission Society40,70018,655
9th Fort McMurray Scouts100,0000
Choices Association Fort McMurray100,0000
CISM for Communities45,2800
Fort McMurray Minor Hockey (1981) Association82,2000
Nistawoyou Association Friendship Centre95,3120
Wood Buffalo Table Tennis Club1,0400
Total2,926,3022,123,357
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Community Impact Grant – Community EventsRequestedRecommended
Alberta Drama Festival Association2,9042,904
Anzac Family Community Support Society16,20011,200
Anzac Recreation & Social Society20,00020,000
Autism Society of the Regional Municipality of Wood Buffalo3,9003,900
BrainSTEM Alliance Ltd.9,0009,000
Fort Mac Hockey Brothers Foundation20,00020,000
Fort McKay Metis Community Association13,00013,000
Gethsemane International Assembly o/a Rehoboth Alliance20,00020,000
Huskies Booster Club17,90015,900
King’s Kids Promotions Outreach Ministries Incorporated20,00020,000
Nigerian Canadian Association of Fort McMurray20,0004,250
Northeastern Alberta Aboriginal Business Association20,00020,000
Ptarmigan Nordic Ski Club20,00020,000
Willow Lake Community Association14,09711,827
Willow Lake Tiny Tots20,00020,000
The Redeemed Christian Church of God, Daystar Chapel, Fort McMurray16,0000
Total253,001211,981
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Community Impact Grant – New EventsRequestedRecommended
BrainSTEM Alliance Ltd.3,5003,500
Camp Yogi Society48,92218,545
Fort McKay Métis Community Association20,40020,400
Gethsemane International Assembly Wood Buffalo o/a Rehoboth Alliance40,00040,000
Girls Incorporated of Northern Alberta Society17,69217,692
Anzac Family Community Support Society10,3000
Willow Lake Community Association17,3960
Total158,221100,137
Games Legacy GrantRequestedRecommended
Aidan Pilgrim1,4981,498
Andon Walker981981
Ethan Pittman1,5001,500
Ethian Mayuk1,5001,500
Fort McMurray Minor Baseball Association3,0003,000
Fort McMurray Music Teachers Association2,8802,880
Generation Competitive Dance Society3,0003,000
Huskies Booster Club3,0003,000
Jordan Breen1,5001,500
Kathie Zhou597597
Lucas Mayuk1,5001,500
Riley Burns1,5001,500
Shawn Jiang1,1171,117
Sydney Barry1,5001,500
Total25,07325,073
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Sustaining GrantRequestedRecommended
Arts Council Wood Buffalo653,000653,000
Family Christian Centre o/a Legacy Counselling Centre320,000320,000
Fort Chipewyan Historical Society148,960148,960
Fort McMurray Heritage Society499,000380,000
Fort McMurray Minor Baseball Association130,000130,000
Fort McMurray Minor Hockey Association611,000611,000
Fort McMurray Society for the Prevention of Cruelty to Animals704,000704,000
FuseSocial Wood Buffalo Society304,361304,361
Justin Slade Youth Foundation310,000310,000
Keyano College1,135,0000
Local Helicopter Emergency Response Organization Foundation1,000,0001,000,000
McMurray Sno-Drifters Snowmobile Association99,50099,500
Multicultural Association of Wood Buffalo561,028539,910
Northern Alberta Athletic Association1,334,5001,334,500
Ptarmigan Nordic Ski Club200,000200,000
Regional Municipality of Wood Buffalo Library Board3,782,4803,782,480
Regional Recreation Corporation of Wood Buffalo – Anzac1,088,3441,088,344
Regional Recreation Corporation of Wood Buffalo – Conklin1,316,5651,316,565
Regional Recreation Corporation of Wood Buffalo – Fort Chipewyan341,782341,782
Regional Recreation Corporation of Wood Buffalo – MacDonald Island Park17,522,74617,522,746
Vista Ridge Recreational Association484,000484,000
Waypoints Community Services Association485,000485,000
Wood Buffalo Economic Development Corporation4,200,0004,200,000
Young Men’s Christian Association of Edmonton (YMCA of Northern Alberta)458,655458,655
Total37,689,92136,414,803

Community Capital GrantRequestedRecommended
Camp Yogi Society292,000                                0
Fort McMurray Golf Club7,850,000275,000
Fort McMurray Oil Sands Curling Club129,96064,980
Total8,271,960339,980
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