A 1.5 per cent increase in property taxes, first projected last December came up for approval yesterday (April 24).
If the proposed hike, brought forward during the town's policies and priorities meeting April 18, is rubber-stamped, the average residential dwelling, assessed at $317,310 this year, could expect a tax increase of $77, while the average business would pay an extra $700.
On Dec. 12, 2016, council approved its 2017 operating and capital budgets, which were just shy of $27.9 million and $10.6 million respectively.
That budget was based on estimated property tax revenue, but assessments aren't completed until the spring, leaving the town guessing. In anticipation of upcoming capital expenditures, last December's budget included the proposed tax hike.
"We're putting a new sports field in the northwest corner and we're talking about maybe needing to do a new operations centre," said the town's chief financial officer Garth Lucas. "So rather than jump the tax rates a bunch when those facilities are built, let's build up a bit of a cushion."
When property value assessments were completed at the end of February, the results were a surprise for Lucas, who said he had anticipated values to decrease more than they did. If the tax rate increase remains as proposed, this would lead to unexpected additional revenue for the 2017 budget, he said.
Lucas is proposing that the town stick with the plan, transferring the bulk of the additional anticipated $227,000 tax revenue to reserves for future capital expenditures.
During the policies and priorities meeting, interim chief administrative officer Pat Vincent said council should be commended, given the challenges it is facing: the growth of the town and the demands being placed on the services within the community.
"Council has a history of being very financially prudent, being very respectful of the taxpayers' dollars," said Vincent. "I think that there is justification and rationale for presenting this budget and a very modest tax increase."
At the time of printing, the tax rate increase was only proposed, as were budget adjustments to account for the actual property assessments and other unanticipated expenses and revenue.
While there was no indication at the April priorities and planning meeting that there were any objections or concerns, either from council or residents, Lucas refused to speculate on what action council might make.
"Council is very in tune with the community needs; they know what the town's needs are," said Lucas, "and they are in the difficult position of having to balance that."
More information on taxes within the Town of Olds can be found online at: http://www.olds.ca/taxes.html
THE NUMBERS
Property assessments
Estimate $1,399,976,480
Actual $1,411,702,800
Difference $11,726,320
Increased tax revenue
$227,042
Average Residential Assessment
2017 317,310
2016 318,509
Difference $1,199
Average Commercial Assessment
2017 938,277
2016 898,335
Difference $39,942
REQUISITIONS
Educational Property Tax
2017 $3,856,489
2016 $3,571,817
Difference $284,672
Mountain View Seniors' Housing
2017 $200,222
2016 $190,687
Difference $9,535
"Council has a history of being very financially prudent, being very respectful of the taxpayers' dollars. I think that there is justification and rationale for presenting this budget and a very modest tax increase."PAT VINCENT INTERIM CHIEF ADMINISTRATIVE OFFICER
