Olds town council gave first, second and final reading to this year's tax rate bylaw last week, approving the proposed 1.5 per cent increase to accommodate future budget expenditures.
The increase was approved without any changes after discussion at last week's policies and priorities meeting.
Expressed as a mill rate, or millage rate, this year's figure for residential taxes is $5.71 for general municipal taxes, up from $5.62 in 2016; $2.53 for the school requisition (up from $2.35); and $0.15 for the seniors' foundation (up two cents), to total $8.40 per $1,000 of assessed property value for town residents.
The 2017 total for residents ñ that is commercial enterprises ñ is $11.51; $10.50 for vacant residential lots; and $8.40 for county farmland.
As previously reported, the increase will mean that for the average residential dwelling, assessed at $317,310 this year, the tax bill would add up to $2,662, about $77 more than last year. The average business will see an increase of $700.
In addition, property values came back higher than expected when assessments were finished on Feb. 28, which will generate an additional $227,042 in tax revenue. As previously proposed, $75,000 of this will be used to fund some of the spring budget adjustments, while the remainder ($152,042) will be transferred to a capital reserve for future infrastructure projects.
The town's share of the Educational Property Tax requisition this year is just over $3.8 million, an increase of $300,000 from the previous year, while the Mountain View Seniors' Housing requisition has jumped five per cent, totalling just over $200,000 for 2017.
BUDGET ADJUSTMENTS
At the same time as the tax rates are approved, adjustments are made to account for some of the estimates built in to the annual budget, which is approved each December, before property assessments are done and provincial budgets are set.
The town's operating budget is being increased $803,167 to a total just over $28.6 million, which accounts for the actual assessment values and requisitions, capital project funds being carried forward and the addition of the Destination Olds Collective fund.
The town's capital budget will increase by just under $1.5 million to total $12.1 million. This accounts for the anticipated purchase of a new fire truck; upgrades to the Sportsplex, cemetery and trails; and $266,500 for the northwest sports field.
Council approved the budget adjustments as proposed.
FINANCIAL UPDATE
Each quarter, the town provides a financial report to council to show how spending and revenue compares to the budget. Administration submitted a report at the regular council meeting last Monday (April 23).
As of March 31, 25 per cent into the 2017 fiscal year, 15 per cent of the operating budget had been spent (or about $4.2 million of $27.8 million), while only two per cent of the capital budget had been spent ($216,348 of $10.6 million). These budgets and percentages are before last week's tax rate and adjustments were approved.
Council accepted the report for information.
