The Canadian Federation of Independent Business says Lloydminster is overspending by 6 per cent the sustainable rate which is better than most other Albertan cities.
The CFIB’s latest Alberta Municipal Spending Watch Report analyses the spending habits of the province’s 17 largest cities and counties from 2007 to 2017. Lloydminster ranked third in keeping spending in line with population growth.
Aaron Aerts, CFIB’s Western Economist, says Lloydminster’s inflation-adjusted spending grew by 98 per cent but the population also grew by 87 per cent.
“With a rapidly growing population, it makes sense, in Lloydminster’s case, that spending has grown rapidly because you need to provide more services to more people. It’s per capita spending also clocked in pretty well at about $1,800 per resident which compares favourably to the average which was nearly $2,600.”
The report shows municipal spending in the province increased by 67 per cent while population growth was 27 per cent. Aerts says municipality should limit spending to inflation plus population growth in order to stay within their means.
“We think in the long term overspending inevitably results in higher property taxes and higher user fees for both residents and business owners. We think almost every municipality we examined has some work to do but Lloydminster did better than most.”
Aerts says during budget time municipalities should look at the services and make sure they’re as efficient as possible and reduce redundancies.