The mill rate for Penhold municipal taxes was set during the May 14 town council meeting and taxes are heading up for the first time in two years.
Town manager Rick Binnendyk said the overall average change is 4.75 per cent. He confirmed later that was the residential portion. During the meeting he said of that 4.75 per cent, 2.5 per cent is due to the school requisition going up while 2.25 per cent of it is for town purposes. The province determines the amount of the school requisition and the town has no control over that decision.
“We've had no tax increases for the last two years,” Binnendyk said at the meeting. He pointed out the 2.25 per cent raise for municipal purposes “is less than CPI,” which refers to the consumer price index and the annual adjustments made to it that anticipate increases to the cost of living.
Binnendyk did not indicate what the non-residential percentage change was for the year before press time.
Second and third readings of the tax bylaw were passed during the May 14 meeting. First reading had been passed during a special council meeting on April 30 that was called by council after a committee of the whole meeting.
Mayor Dennis Cooper said on May 11 that council is able to hold a special council meeting if all members of council consent.
During the meeting, Coun. Chad Hoffman asked if any cost savings had been considered before the decision to raise taxes. Town manager Rick Binnendyk said that was dealt with during the budget process.
Hoffman opposed second and third reading of the tax bylaw. The rest of council were in favour of passing the bylaw.
According to the numbers in the bylaw, the town will be collecting $2,778.421 for the year via municipal taxes. Revenues and transfers from sources other than taxation were estimated at $3,380,781.
The total Alberta School Foundation Fund requisition was $526,127. For opted-out school boards the requisition was $34,679. Requisition for the seniors foundation is $4,100.
