Lacombe city council plans to tie future tax increases to the Consumer Price Index.
“The updated policy includes Council’s commitment to align future tax rate increases with the Alberta Consumer Price Index, which allows the City to keep pace with the rising cost of service delivery to residents, without placing undue burden on taxpayers,” said Mayor Grant Creasey, of the updates to the annual budget and taxation preparation policy.
“The updates were driven by the current Strategic Plan and the recent changes to the Municipal Government Act, which require municipalities to develop three-year operating budgets.”
The Consumer Price Index (CPI) measures the year-over-year price increase that Albertans pay for a range of products and services. The city will use the June 30th Alberta Consumer Price index as the targeted annual property tax increase.
Council also took steps to maintain optimal reserve balances by managing year-end surpluses. Surplus wages and benefits will accrue to the General Operating Reserve.