INNISFAIL - Town council has stayed firm for the 2017 budget.
There will be no town-imposed tax increases for next year. In fact, there could be property tax decreases for many, depending on assessment values.
Council members, who completed budget deliberations more than three weeks ago, continued to believe at their regular meeting on Dec. 12 the zero per cent tax increase option is still the best way to move forward.
“Our economy is getting worse and looking around in our community people are getting laid off, getting laid off before Christmas,” said Coun. Doug Bos last week when the budget was formally tabled. “I think we did our best job in trying to help the citizens.”
Heather Whymark, the director of corporate services, presented the highlights of the town's 2017 operating and capital budgets. Next year's operating budget has been set at $20,729,185 while the capital budget has been fixed at $6,722,000.
Despite the town anticipating a $95,000 loss in revenues from lower property assessment values, as well as a hit of up to $45,000 from the new provincial carbon tax that takes effect on Jan. 1, Whymark told council it was her belief the zero tax increase option for 2017 was the best way to proceed.
“Because it wasn't such a drastic loss on the taxes it was recommended that we brought it in as zero,” she said, adding that once assessment values are known early in 2017, a tax increase may be needed because the revenue for the town has to match with what has been projected in the budget. “Once all the numbers come in, I still might be bringing to you in March that we need to bring in a tax increase to accommodate the revenue that we've established, but that will be because of total assessments, not because of what council has initiated.”
While the town is expecting total budget revenue decreases of $140,936 when compared to 2016, it is also anticipating a $203,313 increase in other areas, including a $94,307 increase from the Fortis franchise fees.
As for major capital expenses, the town will continue with new phases of current million-dollar modernization projects for the administration building and sewage lagoon lands. Both of those projects are significantly funded through provincial and federal grants. However, the town is forced to go into reserves to spend $300,000 for a new plant chiller to replace one that broke down this fall at the Innisfail Arena.
In the meantime, council members were pleased that despite the necessity of doing some targeted belt tightening the town remains in excellent financial shape, with no debt and a healthy reserve that sits at more than $12 million, which is at least $4 million more than it was five years ago.
“To see our reserves not decimated and actually staying above what it was last year and still manage to do projects, I feel quite comfortable with the budget,” said Coun. Patt Churchill.
Tax bills will be sent out to citizens and businesses in the spring of 2017 after the town receives notice from the province on the school tax requisition.
Coun. Doug Bos
"Our economy is getting worse and looking around in our community people are getting laid off, getting laid off before Christmas. I think we did our best job in trying to help the citizens."
