There were no surprises when City of Lacombe councillors approved the 2015 property tax bylaw on Monday night.
As previously decided at an April council meeting, the 2015 municipal property tax increase was set at 4.5%.
CAO Norma MacQuarrie stated council had essentially set the tax rate when they adopted the adjustments made to the 2015 Operating Budget.
“This is more a formality,” said MacQuarrie adding the tax rate was decided back in April.
“Revenue from new construction exceeded budget expectations but was offset by an unanticipated loss in grant in lieu revenue from provincially owned subsidized housing,” said City of Lacombe Director of Corporate Services Michael Minchin in his report to council.
“Based on budget updates approved at the April meeting of council and higher than forecasted 2014 supplementary tax revenue, the required tax increase to meet the municipal revenue was reduced from the previously approved 4.89 per cent to 4.5 per cent.”
Residential property owners in general will pay 0.85% more in education taxes this year. Commercial property tax owners within the City will pay 4.6% more.
“Lacombe property owners will pay $105,058 in 2015, which is an increase of 2.37 per cent over 2014 and is used to fund the operations and capital requirements of the Lacombe Foundation seniors’ housing facilities,” said Minchin.
2015 assessment growth from the new construction of residential and commercial properties was 0.97% and 3.33%.
The market value of existing properties in assessment also increased by 3.09% for residential and 1.17% for commercial this year.
“The City will generate an additional $50,206 from 2014 supplementary assessment while new growth tax revenue remains at budget levels,” said Minchin. “The higher supplementary assessment revenue has allowed council to reduce the average municipal tax increase for 2015 from 4.89 per cent to 4.5 per cent.”
“A typical single-family home assessed at $269,037 will see an overall property tax increase of $83,” said Minchin. “A typical business property assessed at $609,471 will see an overall property tax increase of $304.”
The average Lacombe resident will see also see a decrease of 1.63% in the education portion of their property tax.
After little discussion, council approved the tax rate bylaw. Council gave first and second reading to the bylaw on May 11th.
Tax notices will be mailed out by the end of May with the tax payment deadline set for June 30th.