Debate over the 2019 budget got heated in council chambers on Monday as the tax increase rose by 1.3 per cent over the projected amount. After budget deliberations in November, the finance and audit committee recommended a 0.7 per cent tax increase in 2019, which would have amount to $1.31 per month for the average home. On Dec. 10, council voted to raise the municipal portion of property taxes by two per cent in 2019, for an average of $3.75 per month. It amounts to an additional $45 per year for the typical home worth approximately $450,000. Coun. Matt Rockley was disappointed by the result of the budget meeting. He and Coun. Florence Christophers voted against the change to a two per cent hike. “Extremely disappointed that we arbitrarily raised the tax bill,” said Rockley. “We don’t even have a place for the money to be spent, and we arbitrarily, in this economic climate, went to two per cent when we had figured out 0.7, which was unanimously agreed to from the public members of the committee. “I’ve never had any resident ever come to me and say, ‘Please raise my taxes, you’ll find a place to spend it and if you don’t, put it into savings.’” The 0.7 per cent increase would have lessened the blow to taxpayers, who will also be feeling the impact of the Town’s increased franchise fees on utility bills starting in the new year, he said. It fell below the rate of inflation, but would have made more sense for ratepayers in 2019, he said. Coun. Tanya Thorn disagreed. She said reducing tax increases is great in theory, but only delays the inevitable. It was her amendment to see the municipal taxes increase by two per cent, which she said is still below the 2.5 per cent rate of inflation according to the Canadian Consumer Price Index. It’s also lower than council had originally proposed back in the spring, when it laid out its budget guidelines with an increase of no more than three per cent, she said. “A 0.7 per cent increase this year, great for every resident that lives here,” said Thorn. “Six per cent increase or 5.8 per cent increase next year, not so great for the people who live here. The eight or nine per cent potentially in 10 years…and I know we don’t have those projected out, but if you follow those numbers through the reality is that’s what we’re looking at.” She said a two per cent increase actually fits in with trends in the Calgary region, where municipalities are debating raising taxes by anywhere from 2.5 to 8.5 per cent. The two per cent increase will amount to approximately $340,000 for the Town. Thorn requested $200,000 be invested into economic development and the balance be placed into a tax stabilization reserve fund. “We have no investment in economic development,” said Thorn. “It’s our number two priority. Number two priority, and we’re not going to get there without investing in either resources, initiatives, whatever our manager comes up with. “Without having funds dedicated to it, we’re going to spend three-quarters of the year not being able to make any movement or we’re going to be faced with budget request to pull money out of reserves to do economic development, which further impacts us.” The approved budget includes $58.9 million for operations and $28.6 million for capital expenditures, consisting of $20.8 million for 2019 projects and $7.8 for multi-year capital projects. Items in the capital budget include $1.4 million to implement the Town’s incoming curb-to-curb transit system. In addition, $700,000 is allotted for Town signage, and a $7.15 million allotment for water and wastewater treatment plant upgrades. There is also $1.2 million in the 2019 capital budget for a snow dump land purchase. Residents will see some fees rise in 2019. There will be a 3.88 per cent increase on utility bills for water, sewer, storm and waste management and a 25-cent increase for daily recreation admission fees. Mayor Bill Robertson said raising the tax increase for 2019 will put less stress on future years and makes sense for funding services and projects in the long term. “We need to be as prudent as possible, as responsible as possible, with the public dollars, knowing we’ve got some unknown costs coming forward later on,” said Robertson. [yop_poll id="28"]
