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Lacombe County approves tax hike

Lacombe County councillors approved a 6.7 cent residential tax rate increase on Thursday — but they weren’t happy with it.Council largely blamed the sharp increase on a 10.2 per cent hike in Alberta Education’s requisition, which makes up half of total property tax bills.

Lacombe County councillors approved a 6.7 cent residential tax rate increase on Thursday — but they weren’t happy with it.

Council largely blamed the sharp increase on a 10.2 per cent hike in Alberta Education’s requisition, which makes up half of total property tax bills.

By comparison, the municipal residential tax rate went up three per cent. A small portion of the bill dedicated to supporting the Lacombe Foundation, which provides seniors housing, went up 7.7 per cent.

How the rate increase affects each homeowner’s tax bill depends on how much their property assessment went up or down. In Lacombe County, property values remained relatively flat last year, meaning most residents can expect to see bottom-line tax bill increases roughly in line with the tax rate increases.

A chart provided to council showed an increase as high as 12.1 per cent for a sample Burbank acreage assessed at $570,720 near Blackfalds to a decrease of 1.4 per cent to a home valued at $892,900 in Kuusamo Krest, a neighbourhood of high-end homes on the northwest shore of Sylvan Lake where the economic downturn took a toll on some property values.

The farm tax rate will go up 5.86 per cent, the non-residential rate will go up 1.89 per cent, and the machinery and equipment tax (which applies to infrastructure and equipment used to create or enhance a product) will go up 3.57 per cent. The tax rate bylaw vote was unanimous with Coun. Keith Stephenson absent.

Coun. Brenda Knight said given that the county ran a $2 million surplus last year, perhaps it was time to “consider softening the blow” for residents by tweaking the municipal portion of the tax bill.

Options to ease local tax burdens were also sought by Coun. Cliff Soper. “My question would be is there any way we can protect our ratepayers from these kinds of increases?”

County commissioner Terry Hager said council has two options: reduce its budget to lower taxes, or change tax rates to shift more of the burden to non-residential ratepayers, such as the Joffre petrochemical complex.

In Lacombe County, non-residential tax rates are about double residential rates, which is about middle of the pack among municipalities. But in some counties, including others with significant oil and gas facilities, non-residential rates are many more times higher than residential.

Hager cautioned council that trimming its budget may help this year, but education taxes will likely go up again next year and council will be in the same position.

“Don’t trap yourself into thinking that this is once that this is going to happen to you,” he said.

Coun. Paula Law said she didn’t favour cutting the municipal budget to offset an education tax increase the county has no control over.

“I don’t like an increase, but I think this is just reality, especially this year.”

pcowley@www.reddeeradvocate.com