There will not be a residential tax rate increase in 2016.
At its regular meeting on Dec. 14, Innisfail town council was presented with the 2016 town budget, an administration report that outlined a $21,346,796 operating budget ñ more than $2 million more than what was called for in 2015 and a $5,960,642 capital budget, more than $200,000 over last year.
With these figures, administration was calling for a residential tax increase of one per cent, which would bring in revenues of $75,511 for the town.
But following a passionate discussion, town council narrowly passed a motion by a vote of 4 to 3 to move forward with a zero residential tax increase. The zero per cent tax increase for 2016 follows the two per cent increase that was approved a year ago for 2015.
Those who voted in favour of a zero tax increase for 2016 were councillors Doug Bos, Patt Churchill, Mark Kemball and Gavin Bates.
Those who voted against, preferring a one per cent increase, were mayor Brian Spiller and councillors Heather Taylor and Danny Rieberger.
"These are tough economic times. I really do feel people are starting to feel the pinch,î said Kemball. "I also feel that we have put together a good budget that covers our needs. I would be in support of a zero per cent increase.î
Although there won't be a hike in the town's residential mill rate, some taxpayers will see an increase in their tax bill through property assessment, which is expected to rise about three per cent and generate revenues of $251,543 for the town. As well, council in their discussions noted residents could expect a seven per cent increase on the provincial education portion of their tax bills.
"We haven't seen the tough times hit yet. I think there is more to come,î said Bos. "I really, really don't think we have seen the worst of the worst yet when it comes to our economy.î
But Spiller countered that with the increased cost of living at 1.3 per cent and salaries up 3.8 per cent, implementing a zero per cent increase for 2016 would put the Town of Innisfail "behind.
"I know we do have a balanced budget with a contingency but at the same time we have to keep our taxes up with the cost of living increase,î said Spiller during the council budget discussion, adding the cost for staff and supplies are also increasing.
He also noted it wasn't fair to expect the town to hold the line on tax increases while hikes were being made every where else, including for power, natural gas, schools and water and wastewater services. "All those guys take increases but we will cushion and take the blow to hold the taxes at zero by absorbing all the rest of it; that is not fair to the town to let everybody else take theirs and for us to cushion it by taking nothing,î said the mayor.
Taylor added she was in favour of a one per cent tax hike because she feared the possibility of a tax hike next year of up to "four per centî if assessment tumbles.
"We know that is going to happen because the economy is speaking that,î she told council. "I guess that is my fear ñ if the assessment goes down we then have less taxes and now we got to raise them four per cent because we are behind. I support the one per cent.î
The town's budget going forward in 2016 calls for a reserve of $8.7 million.
The biggest capital expense is the first phase of the revamped town hall forecast to cost of $1,275,142, which will be paid from a provincial grant.
The sewage lagoon reclamation project will cost $1.6 million, with almost $1 million of the total amount being paid by federal and provincial grants and the rest coming from reserves. As well, the town is going ahead with the northeast sanitary trunk replacement project at a total cost of $2 million, with $759,965 of the amount coming from reserves with the rest from grant money.
Meanwhile, water rates are increasing from $2.10 per cubic metre to $2.15 per cubic metre, which is based on an increase from the Mountain View Regional Water Commission. Wastewater will increase from $2.45 per cubic metre to $2.85 per cubic metre. This is based on a 20-cent increase from the South Red Deer Regional Wastewater Commission and a 20-cent increase as per the town's 2020 Plan.
Last September, the town began transporting its wastewater to the City of Red Deer's Wastewater Treatment Plant. The projected 2016 fee to the town is $3.1 million. To offset that cost and to ease the financial burden on local taxpayers, council approved 2016 subsidization funding in the amount of $784,804, funds that come from a stabilization fund that was created to gradually introduce rate increases.
Coun. Mark Kemball
"These are tough economic times. I really do feel people are starting to feel the pinch. I would be in support of a zero per cent increase."
