The City of Lacombe’s proposed 2013 budget is calling for a three per cent municipal tax rate increase.
The $27-million operating budget is up from $25.4 million last year.
The tax increase would see the owner of a typical single-family home assessed at $274,000 paying another $64 a year in taxes, which means the municipal portion of their bill would go to $1,980.
An average commercial building assessed at $464,000 would see an increase of $123 per year to $4,217.
This does not include school or seniors lodge requisitions. School taxes aren’t known until the spring.
The market value of assessments in Lacombe are expected to remain the same or decline slightly in 2013, said Michael Minchin, the city’s corporate services director.
For the first time, the city held a budget open house on Wednesday at the Lacombe Memorial Centre to get local feedback. The event drew about 125 people.
Minchin was pleasantly surprised at the turnout, which drew a cross-section of residents and business people.
Council has done a lot of community consultation on various projects and taking the same approach with the budget was a “natural evolution,” he said. Feedback gathered at the session will be taken to council for budget deliberations on Nov. 26.
Residents will also see a 1.65 per cent increase in the amount they pay for utilities, including water, waste water and garbage collection. A typical household will pay $56.40 for water consumption based on using 20 cubic metres of water monthly, up from $55.28; and $56.85 for the monthly flat charge, up from $56.13.
Jack Friesen, of the Lacombe Taxpayers Association, was skeptical that the three per cent increase tells the whole story for ratepayers.
The association is concerned about the city’s borrowing plans, which simply delays tax increases to future years, said Friesen.
“It’s still going to cost us an arm and a leg down the road,” he added. “There’s still quite a few capital projects in the wings.”
Minchin said the city has not done any major borrowing since the Lacombe Memorial Centre was built in 2007.
“We’ve been looking at deferring as much borrowing as we can, using grants and reserves in advance instead of that.”
Last year, $1.6 million was borrowed and this year just under $2.5 million will be borrowed from a reserve fund to develop the Len Thompson industrial park. Much of that will be repaid to the city as lots are sold.
A $13.2-million capital budget is proposed this year. Among the major projects planned are:
• $4 million for Hwy 2A-CPR crossings and other work
• $2.4 million for Len Thompson Phase 2 servicing and lot development
• $1.6 million for water and sewer main work
• $834,295 for arena parking lot upgrades
• $467,000 for new traffic lights at C&E Trail and Woodland Drive, and Hwy 12 and Wolf Creek Drive
• $350,000 for a new fire pumper truck
pcowley@www.reddeeradvocate.com