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Taxation conundrum

Sundre’s council again found itself in the unenviable position of setting the tax rate for another year.

Sundre’s council again found itself in the unenviable position of setting the tax rate for another year.

The juggling act of attempting to balance increased costs and maintaining a base level of services while setting aside funds for future capital projects without placing too great a burden on the shoulders of residents and business owners is a largely thankless task.

No matter what elected officials decide, chances are they will not appease everyone.

Naturally, no one really wants to see his or her tax bill increase.

But at the same time, few people would likely want to see any kind of reduction in the levels of service.

The situation is largely darned if you do, darned if you don’t.

Council met twice over the past couple of weeks to discuss at length this year’s tax increase.

A special meeting was held on April 23 after a final decision during the regular April 15 meeting stalled when council was unable to reach a consensus.

Administration had recommended a tax increase of 2.25 per cent, which Chris Albert, director of corporate services, said would represent on a $350,000 residential assessment an annual increase of almost $65 more than the tax amount for that same assessment value from the year before.

The difference of opinion among council stemmed largely from a desire Mayor Terry Leslie and Coun. Paul Isaac had to reduce the proposed increase.

The mayor argued that over the past number of years, the municipality had substantially padded surplus accounts — to more than $6 million from about $2 million — in preparation for future capital expenses, and expressed confidence in administration’s ability to find efficiencies and complete projects under budget.

Coun. Cheri Funke, however, expressed concerns that reducing the tax rate this year will result in nothing more than potentially compounding next year’s tax increase, while in the meantime forcing staff to find room in the already approved budget to make cuts on levels of service.

Both raised valid points.

But the reality is that costs increase every year.

And administration had already succeeded in presenting a tax increase that was below the Bank of Canada’s inflation rate of 2.8 per cent, which in and of itself is commendable.

So while celebrating any increase is not something anyone is likely to do, criticizing council for carrying a tax rate hike at less than the rate of inflation would not seem fair.

— Ducatel is the Round Up’s editor


Simon Ducatel

About the Author: Simon Ducatel

Simon Ducatel joined Mountain View Publishing in 2015 after working for the Vulcan Advocate since 2007, and graduated among the top of his class from the Southern Alberta Institute of Technology's journalism program in 2006.
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