Innisfail town council carried first reading of the 2013 property tax rate bylaw which calls for a 1.5 per cent increase rather than a 2 per cent increase that was approved during the budget process.
It means the average homeowner in Innisfail will see an increase of $22 on their tax notices when they are delivered this spring. The average commercial property will see an increase of $115.
Director of corporate services, Heather Whymark, explained to council on March 11 that an increase of assessment allowed administration to reduce the originally proposed rate by half per cent.
The school tax requisition had increased by about $6,000 but the school tax is decreasing by about 1 per cent, mainly because of an increase in assessment, she explained.
“When we got the assessment in it was a little higher, in some aspects, than what I had used to calculate (originally),” she said.
The new tax rate bylaw is based on a total property assessment of $971,856,580 and requisitions from the Alberta School Foundation Fund ($2,614,109), the opted-out school board ($95,177) and the seniors foundation ($17,880).
The town estimates municipal expenditures and transfers to total $18,090,996 in 2013. It estimates revenues and transfers from sources other than taxation to total $8,748,913. The balance of $9,342,083 will be raised by municipal taxation.
Mayor Jim Romane was glad that administration was able to reduce the rate from what was originally proposed.
“One point five (per cent) is not going to compromise our plans…. It was good news that we don't have to start scratching things,” he said.
Coun. Jason Heistad expressed similar feelings.
“Of course, nobody likes to pay taxes, but we all like the things that we enjoy in our community. With our utilities and things going up I think this – 1.5 – would be reasonable, rather than going with 2 per cent.”
The mill rate on residential properties outlined in the new tax rate bylaw is 6.4467. The mill rates for non-residential property and machinery and equipment are both 7.9940.
The tax rate bylaw will be brought back before town council on March 25 for second and third readings.
