INNISFAIL – Town council passed the 2021 Property Tax Bylaw with a zero per cent tax increase but not before an initial motion to increase taxes by one per cent was defeated by the narrowest of margins.
In fact, the motion to raise taxes at council’s regular meeting on April 12 wound up in a 3-3 tie, which by municipal rules is declared as defeated.
Council then went to a second motion to move forward with a zero per cent tax increase. The three council members who supported raising taxes – Mayor Jim Romane, councillors Danny Rieberger and Gavin Bates – all agreed it was simply best to not contest it and move on with a zero per cent tax increase.
“We are in it all together. I am just concerned about it catching up to us in the future but I guess I don’t have to worry about it,” said the soon-to-be retiring Romane, which triggered chuckles in the council chamber.
However, for those elected members, including councillors Jean Barclay, Don Harrison and Donnie Hill, who did not want to hit local taxpayers -- especially those still struggling to make ends meet -- with an extra financial burden, it was declared a victory for hard hit citizens.
“In my opinion a tax increase at this time would not be appropriate considering what everyone has been through this last year and are still experiencing,” said Barclay following the meeting. “We have a healthy surplus and yes, that is mostly due to extra funding we have received. But at budget deliberations in November, we based all of our decisions on a zero per cent increase and I am comfortable staying with that plan.”
The April 12 discussion and subsequent vote on the town’s fiscal direction for the next year, amidst a prolonged COVID-19 pandemic that has generated uncertainty for the municipality and its citizens, began with a presentation from Erica Vickers, the town’s interim director of corporate services.
She told council that since the 2021 budget deliberations last November the town has received notification of a “slight” overall assessment growth of one per cent. Vickers added a one per cent tax increase would generate an additional $78,762 of revenue for the town.
Council was also told the provincial education property tax requisition is frozen to the 2020 amounts, as is the seniors mill rate set by the Parkland Foundation.
Coun. Don Harrison noted council discussed the budget about a month earlier and he was then in favour of a “slight” increase but he added conditions have changed since, notably with the pandemic and ongoing restrictions.
“I would suggest the timing for a one per cent is probably not the time,” he said, noting assessments are generating more tax revenue to be put into reserves. “I am all for reserves. I think there is going to be a day that we are going to have to take a look at our tax structure in Innisfail. But I think at this point in time I would suggest is probably not the best time to impose this on our citizens with so much uncertainty over the next little while.”
However, Bates noted in the seven years on council he has never advocated for a tax increase but said if it hadn’t been for COVID support monies from senior levels of government the town could have experienced “significant” fiscal difficulties. He also noted ongoing capital cost increases, and favoured a one per cent tax increase.
Rieberger also noted the same, adding the town was “aggressively” spending money on many capital projects, and trying to go forward full-steam on “everything.”
“In the big picture, a one per cent increase is very minor. How are we funding all this aggressiveness that we are going for?" he asked, adding he too was in favour of a one per cent hike.
Romane said it was a “difficult” situation for everyone as council recognized the current impact on the community but was concerned about the possible consequences for the town of not having additional revenue to deal with what could be an increasingly challenging future.
“What I am more concerned about is that if you postpone the inevitable too long it catches up to you and I think next year is going to be an even tougher year,” he said, emphasizing the town’s “remarkable” track record over the past five years in limiting tax increases. “I think the longer we keep prolonging the need for an increase it’s just going to catch up, and the next year or two is not going to be easy.”
With the passage of the 2021 Property Tax Bylaw, the 2021 assessment and taxation notices will be sent out by April 22. Residents will then have 67 days to file an appeal on or before June 29. Taxes must be paid without penalty on or before the June 30 deadline.
