PENHOLD – Most residents will not see much change to their taxes this year.
Thanks to a slight decrease in municipal taxes for the third consecutive year, and despite an increase in school costs, Penhold residents will see minimal changes to their tax rates in 2018.
“Most houses may see a one dollar a month increase roughly, or $12 a year roughly,” said Mike Yargeau, Penhold mayor. “Older houses might see a slight decrease depending on the age of the home.
“That’s very good news for Penhold,” he added.
“We were able to hold the line on our spending, while at the same time still putting some money aside for future projects,” explained Yargeau. “I think we did a great job.”
Penhold residents are expected to receive their tax notices in mid-May.
The delay in receiving tax notices this year came as a result of the annexation from Red Deer County, which was finalized on April 1.
The annexation, however, did not affect tax rates this year for existing or new Penhold residents.
“It doesn’t really affect much,” said Yargeau. “At this point, we’re not getting any additional revenue. We taxed the Red Deer County rates for 15 years (for new Penhold residents).”
The town had to wait until Red Deer County finalized its tax bylaw before moving forward.
Council passed first reading of the tax bylaw April 16 and is expected to pass second and third readings by early May.
“We’re going to have a special meeting to do second and third reading and finalize the tax bill,” said Rick Binnendyk, Penhold chief administrative officer. “We’re running out of time to get it out in the proper time.”
The bylaw now covers two different tax rates with the newly annexed lands.
One rate is for existing Penhold ratepayers at the current municipal rates, and the other at Red Deer County rates for new Penhold residents who joined the town as a result of the annexation.
In the meantime, council also expressed concerns with the increasing school costs over the past three years. Two of the last four years have seen double-digit increases in the school requisition.
“Twenty-five per cent of our total tax that we bring in from residents goes directly to the province as part of the education requisition,” said Yargeau. “It’s up 13 per cent from last year.”
He said the town sent a letter to the province expressing concerns over the increase in school costs.
