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MD approves 0.5 per cent tax increase

MD of Foothills residents will see an increase on their property tax bills this year. MD councillors approved the increase despite being presented with a budget that would not have required increasing the mill rate.
MD Reeve Larry Spilak said a 0.5 per cent mill rate increase in 2018 will allow the municipality to cover its initial costs in beginning to fight against rural crime.
MD Reeve Larry Spilak said a 0.5 per cent mill rate increase in 2018 will allow the municipality to cover its initial costs in beginning to fight against rural crime.

MD of Foothills residents will see an increase on their property tax bills this year.

MD councillors approved the increase despite being presented with a budget that would not have required increasing the mill rate.

However, councillors ended up unanimously voting in favour of a 0.5 per cent rise in taxes on April 11. The increase amounts to about $23 for the average household, said MD Reeve Larry Spilak.

"As much as I like that zero figure, I think 0.5 is better," he said. "We've always wanted to have exactly a zero per cent increase, but the reality is that we are going to be faced with some elements of fighting crime in 2018. That was not put into the budget."

After hearing from residents about rural crime concerns in recent months, particularly after a crime watch meeting that saw more than 350 people attend, Spilak said it's clear they want to see something done to tackle crime.

He said there could be RCMP assigned to the rural areas, and it would fall to the MD to cover the costs. It was the right move to pad the budget to make it possible now rather than having to raise taxes more in future years, said Spilak.

"Everything I'm hearing from people is that they'd be more than happy to pay a couple of dollars just to see less crime in our area," said Spilak. "The 0.5 per cent, the budget increase, will cover off the crime prevention we're hoping to achieve, or at least the beginning of it."

Bill Robinson, MD budget and finance officer, told council the total increase in taxes amounted to $877,000 in revenues. That included an additional two per cent, or $420,000, in provincial school requisition amounts, which were $20,341,000 in 2016. The Foothills Foundation requisition increase was just under $1,000, and there was $456,000 more in municipal services, he said.

"Our capital budget is $4.2 million higher than 2017," said Robinson.

The MD's administration cost is six per cent lower this year, while corporate services are up three per cent, he said. There was also increases to the community services budget to accommodate salary increases, fire hall equipment and vehicle repairs, he said.

There will be more funds for Foothills Family and Community Support Services in 2018, as well as increased funding for cemeteries, parks and recreation facilities, said Robinson.

He said there are also some unexpected projects on the horizon.

"We've included a provision in the budget for roof repairs to this building (High River Municipal Building), as we've experienced leaks with the amount of snow and the freeze-thaw cycles we've had over the last winter," he said.

The MD also anticipates $8.6 million in grants and $6.3 million in MSI funds for 2018 for projects and capital purchases, he said.

Those projects include a chipping program, gravel-crushing, the purchase of a grader, the new Alberta First Responders Radio Communications Systems (AFRRCS), the paving program - which includes bridge repairs, a fire engine for Cayley Fire Hall, gravel and heavy truck equipment, and remote-reading water metres that cost about $372,000.

Spilak said overall he's pleased with the outlook for 2018 and the work the finance team and council put into producing what was initially a zero-increase budget.

"Our councillors have been very careful with expenditures and getting them down to an appropriate level, and we do this every year, but this year was one of those years where it seemed like everything came into place," said Spilak. "Coming in at a zero or a 0.5 per cent increase is something to be very proud of, especially when the residents of municipalities we're aware of are running three to six per cent."

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