A major tax hike was the last thing Okotoks homeowners needed as the provincial economy sputters.
Fortunately, town council did the right thing with its 2016 operating budget, approving a 1.6 per cent increase in the municipal share of property taxes on the typical home in town. This works out to about an extra $35 per year for the typical home, or close to $2.90 per month.
No one likes to see their property taxes go up and it’s never the right time to bring in major tax hikes when the economy is struggling, the price of oil is low and some families are facing layoffs.
However, council deserves credit for coming up with a prudent budget that keeps the tax increase down as low as it did for 2016, while maintaining existing municipal services and addressing important necessities in the community. The budget includes depositing $5.35 million in the Town’s reserves, paying $3 million in debt and not adding any new red ink.
Council also made a last minute decision to boost the ranks of Okotoks RCMP. Initially, the budget included funding for two new officers, to start in July, but council agreed to add a third.
The budget doesn’t include funding at this point to twin the Pason Centennial Arena. It may not be welcome news to sports groups vying for time on tight rink space in the community, but it’s the right decision to hold off on until the economy improves.
While running a tight ship may be prudent for now, councillors need to ensure they’re not delaying the inevitable.
There may be a cost to low taxes. It could put pressure on the Town in the coming years to bring in higher tax increases to keep up with everything on its wish list.
Key among these will be a water pipeline from Calgary.
The Town has asked the Province to cover as much as 90 per cent of the project’s nearly $30 million price tag, buy there haven’t been commitments to date.
Council has done a good job with a prudent budget for 2016.
It needs to continue to maintain this balance in the coming years.
