The cost of buying a newly developed home in Innisfail will become more expensive if town council adopts a new report that recommends increasing the cost of off-site levies by more than 35 per cent.
At council's regular meeting on Sept. 23, Craig Teal, the town's director of planning and development, introduced a report for an updated Off-site Levy Bylaw that states the town's current bylaw, passed in 2005, needs to be updated to support new growth in the next 35 years.
ìWe probably have gone a little bit too long. We should be updating it a little bit more frequently than that,î said Teal. ìThis proposal is an update, a continuation of a financial tool we have been using for several years.î
The report, prepared by Tagish Engineering, is forecasting a need to raise $20.5 million to fund municipal infrastructure to support growth for residential, commercial and industrial areas.
If the current off-site levy formula remains in place at its current levels the town will be left with a $7.2-million shortfall to fund necessary future infrastructure for new water and transportation systems. Innisfail taxpayers would then have to foot the shortfall, said the report.
ìFrankly even the adjusted amount still results in a shortfall of $3 million which most people would probably see as very serious too,î said Teal, quickly adding that the large amount of money is for a period of more than three decades. ìThe other way to look at it is that ultimately we need a little more than $20 million. With this adjustment $17 million would come from new growth, $3 million is still coming from the tax base so existing ratepayers are still making an investment along with the newcomers and land developers in the future growth of the community.î
The proposed off-site levy rates, which will be similar for residential, commercial and industrial areas, will see the town collect $21,000 per hectare from land developers and builders. That is a 35.5 per cent jump from the existing amount of $15,500. For residential development, the land developer currently pays $8,000 per hectare while builders pay $750 per house (unit) they construct. That cost is then downloaded to new homebuyers.
ìIf you were buying a new lot or a new house in Innisfail after the bylaw was adopted as presented you will pay more money for that house as a result of the levies because the developers do roll the costs through,î said Teal in explaining how the increased levy cost will impact new homeowners. ìConsequently if you are an existing ratepayer and you are not buying a new house, because the new people that are causing the growth are shouldering some of their share, the burden on you will be reduced.î
He said if council ultimately accepts the report and approves a new off-site bylaw the rates will still be at the ìlower endî when compared to other municipalities.
For example, noted Teal, in Rocky Mountain House the residential off-site levy is $35,000 per hectare, $198,000 per hectare in the City of Red Deer, and $68,000 per hectare in Blackfalds.
ìEven with the $21,000 we are still going to be at the lower end of that pack,î said Teal.
Council agreed last week to accept the report and to give it further review. The process for an updated Off-site Levy Bylaw will include advertising the draft bylaw in the local newspaper, hosting an open house for the public to discuss the proposal, and inviting input from land developers and builders.
The proposed bylaw will then be up to the future town council to discuss and debate after the Oct. 21 municipal election.
ìWe just kind of ran out of time for this term,î said Teal. ìWe are kind of leaving this one for the new group, giving them a good starting point.î
