This week, Lacombe City Council approved aamendments to the 2017 Operating Budget, and gave first and second readings to Bylaw 440, the City’s annual property tax bylaw, which includes a 3.26 percent municipal property tax increase, initially approved by Council last December.
“Council is pleased to be able to maintain and deliver essential services and programs that protect and enhance the quality of life for our residents at a reasonable cost,” said Mayor Steve Christie.
Overall residential growth was significantly lower than forecasted, and was not enough to offset other reductions in the 2016 residential assessment values. When compared with the 2017 budget, the City’s actual assessment growth generated $195,000 less in municipal tax revenue than budgeted.
“This reduction in forecasted revenue has been offset through updates to other revenue forecasts, as well as reductions in program spending,” said Chief Administrative Officer Dion Pollard.
“However, services levels for 2017 will not be affected as a result of these changes.”
“Bylaw 440 establishes property tax rates based on the actual assessment values contained in the 2017 assessment roll, which is based on property market values established on July 1, 2016, and physical condition of property as of December 31, 2016,” said Corporate Services Director Michael Minchin.
“New tax revenue is achieved through approved tax rate increases and changes in the physical condition of assessed properties, not changes in market values.”
In addition to municipal property taxes, the City of Lacombe collects school property taxes. The Provincial school requisition for residential and non-residential properties has an overall increase of $343,790.
In 2017, the City will collect $18.37 million in tax revenue, which will be disbursed as follows:
• Municipal Revenue: $13,573,531
• Lacombe Foundation Requisition: $113,952
• St Thomas Aquinas RCSD: $151,398
• Alberta School Foundation Fund: $4,531,207
A typical house assessed at $281,000 will see a total annual increase of $134 or 4.92 percent, of which $59 is the school tax requisition.
The typical commercial property will see an overall increase of 3.49 percent. A non-residential property assessed at $783,000 will see an increase of $310, of which $70 is the school tax portion.
Tax notices will be mailed by the end of the month, with the deadline to pay without penalty being June 30, 2017.