OLDS— Town council approved a 2020 operating budget with a zero per cent tax increase during the Dec. 9 council meeting. In fact, it will have an approximately $38,150 surplus.
The operating budget has beet set at $30,674,164.
Finance director Sheena Linderman said thanks to a 4.3 per cent decline in residential assessment, a zero per cent tax hike for an average home, worth about $307,144, would cut municipal taxes by $83.61.
However, thanks to the provincial government budget, the school tax, which the town has no control over, is rising.
As a result, Linderman said the average home in Olds will see its taxes rise by $39.35.
She said non-residential properties did not see the same 4.3 per cent assessment decrease. They’ve actually risen. So municipal taxes will rise slightly for the average commercial property.
On the other hand, school taxes for commercial properties will fall.
“Because we have so much more non-residential assessment, the school tax will actually go down for non-residential customers,” Linderman said.
“So a $930,000 average commercial property will see a decrease in school tax of $411,000.”
Plans call for $20,000 of the surplus to go into the town’s snow removal reserve. The remaining money would go into the town’s tax stabilization budget to keep taxes down.
The budget was expected to be ratified during the Dec. 9 council meeting.
Initially, council was looking at a deficit of $476,152, thus necessitating taxation. Scenarios ranged to a one per cent hike.
But council made some big cuts — including dropping a plan to hire a cost efficiency staff person for at least this year. Smaller cuts included some to the budget for trees and flowers.
Council did agree to provide town staff with a cost of living (COLA) hike of one per cent instead of 1.78 per cent, as originally contemplated.
Linderman told council the 1.78 per cent COLA increase would have cost the town approximately $135,000.
The budget does include $121,250 to cover salary and benefits for a deputy fire chief, due to concerns that the workload for fire Chief Justin Andrew is too much.
The Jan. 20 byelection to replace former councillor Wade Bearchell is expected to cost about $15,000.
The proposed 2020 operating budget presented to council anticipated revenues of $30,656,077 and expenses of $31,132,229 resulting in a $476,152 operating deficit.
“It’s great because I think going for a zero per cent tax increase would be welcome news for our community and our taxpayers,” Coun. Heather Ryan said.
Like many councillors, Mayor Mike Muzychka noted that compared to 17 other similar communities, Olds has the smallest number of employees per capita (per person) and in about the middle of the pack in terms of cost per employee.
Yet, he said, this community provides greater services to its residents.
As a result, councillors believe the one per cent COLA increase is justified.
“I think the Town of Olds, for what we have – all the services, the infrastructure that we try to keep up on – I think our tax rate is a pretty good rate for in this area,” Coun. Mary Anne Overwater said.
Deputy Mayor Wanda Blatz said due to the tough economy, many businesses are not giving their employees any COLA increase this year.
Coun. Heather Ryan agreed with that point.
“I just think that we do have a lot of people who do not get raises, automatic raises every year and I don’t think anybody should automatically count on getting those,” Ryan said.
“I do value our staff and all the hard work they do, but these are really tough times and there are a lot of people who are unemployed and we have to decide what’s best.
“I think going for one per cent would be acceptable, not just to our staff, but to our taxpayers,” she added.
Muzychka said although the cost efficiency staff person position was dropped for next year, it can’t be put off for long.
“We’ll look at it next year. We’ll have them bring that back next year,” he told reporters.
“All municipalities are probably going to be mandated in the near future to have one of these people and know exactly where our assets are as far as aging and when they’ll need to be replaced. It’s something we’re trying to keep ahead of,” he said.
