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Council approves 2018 tax rate bylaw

Creasey looking to keep tax increases in line with inflation rate
11606422_web1_171024-EXP-M-Mayor-Grant-Creasey-cropped

Lacombe City Council recently approved the 2018 property tax bylaw (Bylaw 451).

As promised in the 2018 budget, this year’s residential tax rate was kept to 1.3 per cent, which is indicative of the Consumer Price Index (CPI) — which roughly equates to the rate of inflation.

“That is what we had proposed in the fall and we wanted to hold fast on keeping it to the consumer price index as a maximum,” Lacombe Mayor Grant Creasey said.

“We were successful in doing that and I am certainly pleased about that.”

The increase equates to roughly a total increase of $24 on a house valued at $287,967.

Fiscal responsibility was one of the key elements of Creasey’s 2017 mayoral campaign and he said ensuring that year over year tax increases above the CPI is not sustainable.

“With that in mind, we have tried to keep our spending under control and have explored some less traditional methods of income for the City,” he said. “They have been positive and hopefully that will increase over time.”

Examples of these new revenue streams include investing City reserve funds into higher-yield accounts and also the City’s successful bid to manage the regional wastewater system.

“There is always risk with a new venture but the team who put forward the bid and was successful in acquiring that contract has assured me they have looked at it multiple ways and it will end up being a positive cash flow for the City. That is a win for us,” Creasey said.

For non-residential properties, owners will see an increase of 8.23 per cent which included a 19.13 per cent school tax increase. A non-residential property assessed at $815,003 will see a total tax increase of $757 with $470 of that being required for the school requisition.

“We have very little input on the school requisition,” Creasey said. “I would suggest it is very unfortunate it has got to that high of a number.

“That is what was put forward and that is what we have to live with. It does have a significant impact on our business community.”

Creasey said the City is continually working on making the business environment more attractive in Lacombe, despite the school requisition tax rate increase.

“I don’t think it is any secret we have some larger projects that are in progress and there are hurdles with those like there are with any larger developments,” he said. “We are working with them, just like to we do with smaller businesses, to try to minimize red tape at City Hall — which we heard a lot about during the previous election.”

Creasey added that the goal of Council is to keep the residential tax rate increases around the CPI index in years going forward.

“We are always doing our best to be as efficient and cost-effective as we can. That is an ongoing procedure and we continue to work towards that goal.”

todd.vaughan@lacombeexpress.com