The town is giving Innisfail residents and businesses an early Christmas present: there will not be any municipal tax increases for 2014.
However, while town council passed its 2014 operating and capital budgets on Dec. 9 that underscore a zero per cent tax increase – as opposed to last year's one per cent tax hike -- most residents will still see an increase of about one per cent to their tax bills due to assessment growth, while many commercial property owners can expect a hike of about 1.5 per cent.
“I think citizens should be very pleased that we can hold the line at zero per cent,” said Mayor Brian Spiller. “Of course if your assessment goes up you might see a small tax increase but overall we've kept the mill rate the same, and it's not just for the residents. It is for the industrial people too. They should be happy that we are not increasing their taxes, industrial and commercial.”
On Dec. 9, Heather Whymark, the town's director of corporate services, formally presented the budget to council after lengthy and meticulous studies and meetings by administration that was followed by intensive council deliberations.
“This is the first time in a long time with a zero increase. We budget our finances well,” said Whymark, adding increased assessments for residential and commercial property owners should bring in an additional $109,000 in revenues for the town. “The level of services we ran for 2013 will be maintained for 2014. We will continue as was and we got the same big projects in there.”
The town's operating budget for 2014 comes in at $18,296,020 while the capital budget is $8,412,556.
Whymark said extra revenues in the operating budget include Fortis's $54,000 franchise fee, ATCO Gas's $29,000 franchise fee, $177,000 in utilities savings from a new gas and electric contract, increased sewer rates as part of the town's financial obligation to the regional system, a hike in the recycling rate from $3 to $5, and increases to development and building permit rates, as well as a hike to subdivision fees.
As for expenses in the operating budget, it will include a 1.3 per cent cost of living increase for full-time employees -- $39,173 based on Alberta Consumer Index, as well as $85,478 in merit increases based on successful performance reviews. The operating budget also includes an $180,000 expense to reserve for the continued partnership with Chinook's Edge School Division and the construction of a three-station gym.
The town is also making a $107,000 contribution to the library board to operate the local facility and another $20,000 to the historical village, which is funded by a provincial grant.
New expenses to the town's operating budget also include $38,000 for a full-time administration position in the FCSS office, $49,000 for a new full-time position in the planning and operations department and an additional $20,000 to hire the town's first full-time fire chief, as well as the reallocation of $20,000 in wages within the department.
In the capital budget, the big expenses include $2,685,000 for the third and final phase of the Downtown Revitalization Project and $3,748,556 for Phase I of the Napoleon Meadows subdivision, a cost that will be recouped through the sale of lots. Other capital expenses include $400,000 for the continued sewer lining project, and $490,000 to upgrade the 45 Street lane and another $460,000 for road improvements on 42 Street (Auction Mart Road). The latter issue did not please Coun. Patt Churchill as she wanted upgrades to the 46 Street lane done before the improvements on 42 Street.
“She (Churchill) wanted 42 taken back out because our 10-year projection was to do 42, the Auction Mart Road in 2015, so she was going based on what was presented and wanted it put back the way it was and the rest of council of course wanted it in,” said Whymark, noting the proposed improvements to the 45 and 46 street lanes had an original price tag of $950,000. “That $950,000 got divided between 42 Street and doing only one lane, 45 Street, instead of both. It is still $950,000 but they are only doing the 45th lane and 42 Street. They have another lane to do which will be brought back in the 2015 budget.”
With the town holding the line against any municipal tax increases for 2014, residents will still have to wait until March to see if the province will do the same with its annual requisition for education.
“Whatever we get charged we put on to the taxpayer. We don't have any control over it,” said Whymark, adding the province's requisition of $2 million from the town in 2013 was not an increase over the year before. “It could absolutely increase. It just does not have anything to do with us.”
