Bowden town council has set this year's tax rates.
As a result, Bowden taxpayers will be faced with a two per cent increase in taxes this year.
Half of that increase is due to a need for the town to make up for decreased revenue and half is due to increased education taxes, which the town does not determine, but must collect on behalf of the school division.
Tax notices were sent out last week. Town chief administrative officer (CAO) James Miller says taxpayers have until June 30 to pay their taxes before a 15 per cent penalty for overdue current taxes kicks in.
As reported by the Albertan earlier, the town's revenues and expenditures are expected to balance out at $2,442,026.60 each.
Last year, the town's operating revenues totalled $2,467,221.51. The town spent a total of $2,232,482.70, resulting in a surplus of $234,738.81.
“The amount that we're budgeting to take in is actually less than last year but that's because of those grants in place of taxes that we're losing,” Miller said as council debated the matter during a special council meeting May 16.
Councillors said disappointing as the one per cent hike in school taxes is, they had feared worse.
“That's better than what we thought,” Coun. Sandy Gamble said.
Mayor Robb Stuart agreed.
“Other municipalities were talking four (per cent),” he said.
Stuart noted the town's portion of the tax hike is one per cent, and said this year's tax increase is the lowest he can recall in the approximately 12 years he's served on council either as a councillor or as mayor.
“Even when I was mayor it was four and five per cent. So it's definitely not because of a leadership change,” he told the Albertan with a laugh.
“A one per cent (tax increase) is significantly lower than we've ever had since I've been on council, so I want to thank council for their efforts in trimming our budget and trying to do what we can (to keep taxes as low as possible),” Stuart said during council debate. “I think we're moving in the right direction.”
Stuart thanked town staff for their efforts on the budget as well.
During an interview with the Albertan, Stuart noted that last fall, he had anticipated the town might have to hike taxes by six or seven per cent. However, he said several factors combined to cut that increase.
“I think we ended up with a little bit of a surplus from last year's budget, which we rolled in and I hadn't planned on that,” he said. And we had a pretty mild winter, so our snow removal budget was down.”
The town has also contracted out some services. For example, as of January, its subdivision planning services are now done by Red Deer County staff.
“We don't have any income from that but we don't have any costs, either,” Stuart said. “Their costs will be higher, but then we have no liability at all. They just act on our behalf and keep us informed.”
He also said town staff are down a couple of people in the public works department.
"A one per cent (tax increase) is significantly lower than we've ever had since I've been on council."ROBB STUART MAYOR OF BOWDEN
