MOUNTAIN VIEW COUNTY – Overall taxable assessment decreased by 1.32 per cent or $60,352,520 in the municipality in 2019, according to the 2020 market summary report presented during the recent regularly scheduled council meeting.
Reeve Bruce Beattie says he expects that assessments in 2020 may decline further.
“I think the important thing to remember is this (2020 report) is reflective of 2019,” said Beattie. “I expect that the report next year, which will reflect what happened this year might indicate a bigger drop. When we are looking forward we are thinking there is going to be a continual drop in our assessments, at least in the short term.
“These are trends and you need to look at the longer term trends. We have always seen an increase in revenues because we’ve had an increase in assessment but that might not be the future.”
The report presented to council looked at five property classes for the 2019 assessment year: residential and residential designated industrial properties (DIP); non-residential and non-residential DIP; machinery and equipment and machinery and equipment DIP; farmland and farmland DIP; and linear, cogeneration and railway.
DIPs include facilities regulated by the Alberta Energy Regulator, Canadian Energy Regulator, and Alberta Utilities Commission, as well as linear properties such as pipelines and power stations.
“This document is one of the most important documents the county has to determine future trends of property tax revenue,” administration said in a briefing note to council.
“The vast majority of our revenue comes from property owners in the county. Understanding trends will give insight to the financial strength of the county.”
Residential and residential DIP assessment totalled $2,295,427,800, a 1.06 per cent or $24,475,260 decline over 2018.
Non-residential and non-residential DIP totalled $332,797,720, an increase of $19,284,200 or 6.15 per cent over 2018.
The residential building and structure market analysis conducted by the assessment department supported an average overall increase of 1.3 per cent, due to new building construction and market growth, the report states.
The report also included an average value of a residence in various communities, as well as the percentage of increase or decrease from 2019.
Water Valley's average residence value is $465,840 for a 4.35 decrease; north of Olds is $441,590 for a decrease of 4.19 per cent; south of Carstairs is $474,270 for an increase of 3.27 per cent; east of Didsbury is $433,780 for a decrease of 2.2 per cent; east of Sundre is $353,450 for a decrease of 4.60 per cent; east of Elkton is $406,450 for a decrease of 4.86 per cent; and east of Highway 2 is $377,950 for a decrease of 5.99 per cent.
Machinery and machinery DIP totalled $490,656,540, an increase of $848,210 or 0.17 per cent over 2018.
Farmland and farmland DIP totalled $158,566,290, a decrease of $45,680 or 0.03 per cent over 2018.
Linear assessment totalled $1,246,769,340, a decrease of $55,963,990 or 4.30 per cent over 2018.
The assessment of wells saw an overall change of 7.65 per cent, with 28 new wells drilled in 2019, compared with 105 drilled five years ago in 2014.
Overall assessment totalled $4,524,217,690, a decrease of $60,352,520 or 1.32 per cent over the previous year.
“In the past we’ve been able to rely on that if we only did a one per cent in taxes we’d still generate more revenue because of the increase in assessment,” said Beattie. “That’s why we need to diversify our tax base because we are still so heavily reliant on oil and gas.”
The 2020 market summary report was accepted as information.
