Increased cost of living expenses has forced town council to accept a recommendation from administration to hike Innisfail property taxes next year by two per cent.
That will mean property owners with a house assessed at $320,000 will see their 2015 tax bill increase by about $60, based on property values and the approved two per cent tax increase.
As well, homeowners will also see utility costs go up at least $8.50 a month starting in April; about the same time taxpayers will receive their tax notices, combined with the provincial education requisition amount for 2015.
On Dec. 8, town council approved a total 2015 budget of almost $25.8 million - just over $20 million for operating and more than $5.7 million for capital, the latter significantly reduced for 2015 with the completion this year of the multi-million dollar three-year Downtown Revitalization Project.
Unlike last year when council passed an overall budget with a zero per cent tax increase, 2015 sees a two per cent hike due to the rising cost of living. The tax hike brings in an extra $143,130 in revenues for the town while increased assessment on properties adds another $386,357.
“Cost of living not only affects our wages it affects all of our utilities, our projects, supplies, software. We have to keep up, unfortunately,” said mayor Brian Spiller, noting the tax hike is only half of what the town is facing in cost of living increases - 1.4 per cent last year and 2.6 per cent this year. “It is nice to sit at zero per cent forever but sometimes our services and our equipment in the town start to suffer.
“I was looking at 2.6 per cent (but) council argued it down to two per cent - that is on the table right now and I can live with that,” he said. “I know no one likes tax increases but it is a fact of life.”
Coun. Danny Rieberger called the tax hike “reasonable”, adding the town would go “backwards” if there was not some increase.
“Maybe it should have been a little bit higher but I think it is a good compromise,” he said. “Compared to some of the other communities around us I think we are right where we want to be, right in the middle of the pack. I think we are doing the right thing here.”
The tax increase for 2015 compares to a 1.5 per cent increase in 2013 and a three per cent increase in 2012.
Property owners will also see an increase to the cost of water and wastewater. Based on an average monthly consumption of 10 cubic metres, water is going up 10 cents per cubic metre while wastewater rises 25 cents per cubic metre, an amount based on the town's 20/20 plan to ease residents of the cost of the new regional system. The combined amount for water and wastewater will mean an extra $3.50 monthly cost to property owners on top of an increased $5 monthly flat fee, bringing a total extra $8.50 cost to monthly utility bills for homeowners. Rates for garbage and recycling will remain the same.
Innisfail is faced this coming year with a $1.8 million payment to the South Red Deer Regional Waste Commission (SRDRWC) to transfer all wastewater to the City of Red Deer as the new regional wastewater system becomes fully operational. It is the first large payment to the SRDRWC, and monthly payments on the nearly $2 million are expected to begin June 1 when the town's contribution to the new system increases from 500 cubic metres per day to 4,500.
Meanwhile, the 2015 budget also includes costs to construct the new site for the waste transfer station. Access to the new site is estimated to cost about $352,00 while the bill for the actual site work is expected to come in at about $137,000.
The budget also includes a $100,000 expenditure for the preliminary design for the expansion of town hall, and a $148,000 cost for one new RCMP police officer. The town also wants to increase the reserve for the fire department by $60,000.
The town is also proposing to borrow $1.3 million to construct a new lift station that is required for the development of the Woodlands subdivision.
As well, the town is looking at putting in more money for its trails, parks and playgrounds. The budget proposes spending a $250,000 expenditure for a trail on the east side of Highway 54, another $20,000 for a Napoleon Lake trail and additional $60,000 for other trail work and landscaping, and $70,000 for improved lighting in the area of the sports fields and tennis court near the Innisfail Schools Campus.
”Over the last three years or four years sitting around this table we have spent a lot of money under the ground, $8.5 million on Main Street over three years, and I think this budget to me looks more recreational,” said Coun. Mark Kemball, who noted the $250,000 trail expenditure during the Dec. 8 regular council meeting. “That seems like a lot of money but it costs a lot of money to build trails. One of the things that attract people to a community is amenities. The trail system will add to the community and connect to other areas of town. I think it is money well spent.”
Mayor Brian Spiller
"Cost of living not only affects our wages it affects all of our utilities, our projects, supplies, software. It is nice to sit at zero per cent forever but sometimes our services and our equipment in the town start to suffer."
