Stettler town councillors unanimously approved a 2018 operating budget that calls for a two per cent increase to property taxes.
Council met on May 8 to review the $17.6 million dollar budget and voted with administration’s recommendation of a two per cent hike to both residential and non-residential tax classes.
Eleven options were presented to council by administration, offering calculations on expected revenue ranging from a one per cent increase to four per cent.
Council didn’t consider a zero per cent increase, or a decrease, to property taxes this year, but Coun. Malcolm Fischer said to pass a zero per cent increase wouldn’t be responsible due to increased contributions from the town for services such as the library, museum and the handi-bus.
Maintaining public infrastructure such as the water and sewer systems, and the garbage and recycling programs, were also highlighted as items that council should keep an eye on throughout their term.
Last December, council passed an interim operating budget calling for a two per cent increase to both classes. The increase would have given the municipality $1,026,905 in available operating capital, but this has since decreased to $1,024,825. This is due to actual assessment values coming in since the interim budget was passed.
Of the $17.6 million dollar operating budget, $8.4 million is raised through the tax levy. The remaining $9.1 million is brought in through other means such as grants, utility payments and recreation business fees.
School and seniors taxes
The municipal portion makes up about 69 per cent of the overall property tax bill. Another 27 per cent of the bill helps pay for education through the Alberta School Foundation Fund, while the remaining four per cent is used for seniors housing.
These payments to schools and seniors bring the tax rate increases to 2.7 per cent for residential homes, and 2.86 per cent for non-residential properties.
Utility rates
The town’s utility rates also factor into the overall capital available in the 2018 operating budget.
As of Jan. 1, the water rate increased by a cent from $2.78 to $2.79 per cubic metre. The flat water fee remained at $10 a month, while the flat sewer fee increased to $22.25 from $22.00. Residential garbage pick-up also increased by $0.25 to $23.25.
Assessments
Overall assessment values in Stettler have increased over 2017 by $9.4 million over 2017 or 1.24 per cent. Depending on a home’s individual assessment value, this will determine what a property owner’s taxes will be.
At the time that the interim operating budget is passed in mid-December, the town uses estimated assessment values. The 2018 tax notices will be based off of actual assessment values, which have appreciated 0.89 per cent on the residential side, and 0.39 per cent in the non-residential class over 2017.
Financial impact
To provide a clearer picture of the impact to individual property owners, a home assessed at $274,230 dollars could expect to see a municipal tax levy of $1,824 or a $33 dollar increase.
Utilities on this property would cost around $1,310 dollars a year, or a $49 increase. When school and senior taxes are factored in, this would total an additional $74 over last year.
Tax rate bylaw
Town council will bring the operating budget back for approval on May 15 to set the tax rate bylaw. Tax rate notices will then be sent out at the end of the month.
Specific tax bills will be based on the home’s assessed value as of Dec. 31, and its classification.
landin.chambers@stettlerindependent.com
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