After two days of budget deliberations town council has set the stage for a zero per cent tax increase for local residents and businesses in 2017.
In fact, most overall property tax bills in town could actually decrease next year due to lower assessment values.
The surprising development, which won't be finalized until the budget is brought to council for a vote on Dec. 12, follows repeated warnings this year from Mayor Brian Spiller the mill rate could rise as high as two or three percentage points due to the deepening recession in Alberta and the Jan. 1 implementation of the provincial carbon tax.
“We are cognizant of the fact that it is a tough time in Alberta. We have a lot of unemployed people. A lot of people have had wage rollbacks and lost jobs and everything else, so we want to do our part to help out citizens too,” said Spiller on Nov. 17, following council's two days of budget deliberations last week. “We are not changing the mill rate, so it will actually be a tax decrease for almost every resident and business in the town this year.”
However, Spiller cautioned the 2017 budget has not yet been formally approved and that there is always the possibility the economic landscape could change between now and Dec. 12, and that a majority of councillors could have a change of heart.
“Between then and now things might change in the economy, things might have changed in the town, or with the councillors' thoughts and they might put up their hand and go, ‘I know we agreed three weeks ago, but today when we are going to pass it I would like to change this,'” said Spiller. “If they can find a consensus majority they can change it that day again. We can change anything we want, including up to the last minute.”
However, the mood on council was decidedly giddy last week about the prospect of ultimately approving a zero per cent tax increase budget on Dec. 12. Coun. Mark Kemball said council's once onerous task was made easier by administration's “excellent” budget preparation.
“I think administration has done an excellent job of tightening things and only putting in things in the budget this year that we really need. I am not exactly sure how we found the money but we have, and we haven't dipped into reserves really,” said Kemball, noting the town remains in “excellent” financial shape. “You can't go to many other communities where they have this kind of money in reserves with no debt, and we have virtually no debt.”
Spiller noted that at the end of 2017 town coffers should have about a $12 million cash reserve in the various municipal reserve accounts, as well as up to $6 million worth of land, including a quarter section north of the Innisfail Golf Club. “If we sold those we would have $18 million in reserves,” said Spiller.
If the budget is approved on Dec. 12, the town will use $45,000 that has been set aside to deal with the provincial carbon tax. The first $30,000 is for the extra cost for diesel, gasoline and propane, but there will also be a new tax expense on electricity and natural gas, but the town does not yet know what those amounts will be, and the remaining $15,000 has been earmarked to cover that unknown cost.
“And we use a lot of electricity and natural gas. We are trying to be prepared for it,” said Spiller, adding the extra cost could be even higher. “That is an approximation. It could be 55 (thousand) or 40, but it is probably going to be 45 to 48. We are guessing.
“We are paying it (carbon tax) but are not collecting it from our citizens,” said Spiller. “By astute financial planning and proper money management we are going to try to bring in this tax season with a zero per cent tax increase or less.”
Mayor Brian Spiller
"We are cognizant of the fact that it is a tough time in Alberta. We have a lot of unemployed people. A lot of people have had wage rollbacks and lost jobs and everything else, so we want to do our part to help out citizens too."
