The Town of Olds passed a three per cent tax increase to cover its 2014 snow removal budget shortfall and to replenish reserves.
The Town of Olds passed a three per cent tax increase to cover its 2014 snow removal budget shortfall and to replenish reserves.
Council gave three readings to the tax rate bylaw during its April 28 meeting.
The motions were each passed unanimously.
"I think the citizens of Olds probably this winter didn’t care what the costs were. They just wanted to be able to get around town," said Coun. Mary Jane Harper.
"I really was reluctant to put this money, all this money back into the 2014 budget knowing that we were looking at tax increase but when you look at the overruns of cost due to the volume of snow that we had, we have no choice."
This winter saw significantly higher than average snowfall, resulting in the town going over budget on snow removal costs.
According to town figures, excluding this season, the average cost of snow removal from October to March since 2007 was $56,135.87.
The town spent $393,606.55 this winter.
As a result, the town’s snow removal reserves have been depleted, said Olds’ chief administrative officer, Norm McInnis.
He added the town has some "general surpluses" that could have been used for replenishing reserves.
However, he said the tax hike does not represent the new normal.
"When we go to look at the numbers next year, we’ll use our baseline, the zero per cent tax increase, not the three per cent tax increase because it was just a one-time thing."
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