INNISFAIL – There will be higher property taxes in Innisfail in 2024 but it could have been worse.
On Dec. 11, town council at its regular meeting formally approved the $27.78 million operating budget and $9.7 million capital budget for next year.
With that completed, property owners are left with a 2.8 per cent tax increase in 2024.
A property with a tax assessment around $320,000 will see a tax increase of about $7.51 per month.
The 2.8 per cent tax increase is expected to generate about $265,184 for the municipality but the town will move about two-thirds of that total - an estimated $189,416 - into the Facilities Reserve for the planned $28.2 million aquatic centre.
The approved 2.8 per cent increase is lower than the four per cent increase council approved a year ago for 2023. It is also one of the lowest or projected lowest tax increases of any municipality in Central Alberta.
And how it could have been worse for property owners was that town staff and council were originally looking at a 4.1 per cent increase during last month’s budget deliberations.
But both dug in and found about $121,000 worth of cuts that could be made to get the tax increase down to 2.8 per cent.
Those cuts included:
• Community Safety & Wellbeing Plan Implementation - $30,000
• EDO partial funding - $30,000
• library grass out front - $8,500
• crosswalks - $20,000
• downtown tactics – cut by $5,000
• grants to others, Economic Development – cut by $5,000
• Arena Sprinkler Operating Project, Carried over from this year - $18,000
• Emergency Coordination Centre exercise – cut by $5,000
Council also agreed to increase utility costs for water and wastewater in 2024.
The cost of water will go up 15 cents per cubic metre, from $2.76 to $3.01.
Wastewater is increasing to $4 per cubic metre from $3.80 to help offset expenses for water department renovations, repairs and mechanical replacements.
As well, the town is increasing the flat rate for wastewater to $12 from $10.
In the meantime, the town is moving ahead with a long list of capital projects for 2024.
With the capital budget set at $9.7 million the town is relying on $2,560,095 from reserves to cover project costs with the remainder being paid from either provincial or federal grants, or from a debenture (municipal solar farm) and the town’s operating budget.
The town’s reserve balance for 2024 is projected to be $12,093,353, the lowest since 2014.
The full list of capital projects include:
• Town Office Windows - $50,000
• Town Office Committee Renovation - $30,000
• Alarm Upgrades - $38,000
• Fire Hall Sanitary Venting - $10,000
• CPO Radios - $15,000
• Combi Tool - $22,000
• Operations Yard Electrical Upgrades - $35,000
• Sanitary Foremain 42 Avenue and 51 Street - $1 million
• 2024 Surface Improvements - $1.5 million
• Hwy 54 Pedestrian Crossing - $175,000
• Solar Farm - $4 million (debenture)
• Res 3 Radiant Heater Replacement - $30,000
• Parks Shop Water Heater Replacement - $30,000
• Parks Shop Radiant Heater Replacement - $70,000
• Make Up Air Unit Replacement $ 45,000 Reserves
• Skid-steer - $100,000
• New Pickup Trucks - $445,000
• Water Truck - $100,000
• Side By Side - $18,000
• Snow Blade Attachment - $15,000
• New Floor Cleaning Machines - $25,000
• Construction of Four Units Napoleon Meadows - $1.5 million
• SW Residential Development Design - $150,000
• LLC Hot Water Tank - $10,000
• Curling Rink Mechanical Slab Repair - $10,000
• Arena Sound System - $125,000
• Arena Lobby Flooring and Partition - $170,000
As the town moves forward in 2024, Town of Innisfail Mayor Jean Barclay noted that while the municipality experiences one of the highest inflationary periods in decades it is now seeing assessment growth, increased economic activity that includes business expansion and new builds, and interest from residential developers.
“Administration and council are always looking for innovative ways to seek return on invested capital through projects such as the new industrial park and solar project that increase our revenues, thereby lessening the tax burden on residents and businesses,” said Barclay in a prepared statement.
“We are committed to a continued focus on housing, economic development, maintaining necessary infrastructure upgrades, management of reserves aligned with our asset management plan, recreation, and community funding to support the great quality of life we enjoy in Innisfail.”
