Taxes - How do we compare?
In the lead up to
the last election, and in many conversations I have heard around town, the
subject of taxes is a hot topic. As
Council was preparing to set the tax rate for this year we were presented with
the following community comparisons from 2013:
Town
|
Population
|
Assessed
Value (residential)
|
Taxes
|
|
Sundre
|
2,695
|
$250,000
|
$2,498.25
|
|
Athabasca
|
2,990
|
$250,000
|
$2,590.08
|
|
Carstairs
|
3,442
|
$250,000
|
$2,438.95
|
|
Didsbury
|
4,957
|
$250,000
|
$2,787.00
|
|
Hanna
|
2,673
|
$250,000
|
$3,367.83
|
|
Redwater
|
2,116
|
$250,000
|
$2,482.68
|
|
Rimbey
|
2,378
|
$250,000
|
$2,404.40
|
|
Three Hills
|
3,230
|
$250,000
|
$3,006.63
|
|
Average Tax
(Sundre Excluded) $2,735.36 .
|
||||
Average Tax
(Sundre included) $2,696.98 .
|
||||
As you can see, we
aren't the highest or the lowest in these comparisons. If we took other comparisons we would find
differences. Each community has
different circumstances, facilities, expectations of residents, growth rates,
economic climate, support industries, and other factors that have to be considered
when setting the tax rate.
We have so much to
be grateful for in our community. We
have an outstanding volunteer fire department that can quickly respond to
emergencies. We have an RCMP Detachment
and our own Bylaw Enforcement Officer to help keep us safe. We have a hospital and medical clinics to
attend to our health needs and we have great schools. These are the building blocks of every
community - emergency services, safety, health care and education - most of
which are paid for by income tax, not property tax (except fire protection).
We love our parks,
playgrounds, trail system, recreation facilities and library. We expect grass to be cut, garbage to be
removed, compost and recycling, and snow to be cleared. We expect water to be clean, toilets to work,
pavement to be maintained, sidewalks to be free from breaks and heaves, and we
expect that laws and regulations for our safety will be followed in our
municipality. We don't really know about
the underground pipes and pumps and all the details that have to be attended to
so that everything works but we trust that things are being looked after. We are OK with growth & development and a
local Council making decisions, as long as we have a say and are kept informed.
We expect plans for the future and don't
want big unanticipated jumps in our taxes because of poor planning or not
attending to detail. All those things
have a price tag and those are some of the things your taxes pay for.
For those of you
that like numbers, Council passed a budget calling for a 2.94% increase to
residential property, a 1.59% increase to commercial property and a 3.23 %
decrease to vacant commercial property. The
goal is always to keep taxes as low as possible and still provide for services
expected. The operating budget for the
year is $2,816,901. A 1% increase in
taxes generates about $26,000. Residential
taxes account for about 70% of revenue with commercial paying about 30%. A year ago that split was 80%/20%. We need more commercial development to help
keep residential tax rates down. Council
wants to be sure we have attractive tax rates for both residential and
businesses so we can have a more balanced residential/commercial split to pay
for services.
Taxation is a
little complicated. To simplify, we want
to be sure we offer the best services for the taxes you pay. We also have to continually look for more
efficient ways to provide those services - just like any business. Please give me a call at home (403-638-3535)
if you would like to talk more about taxes and services.
Mayor
Terry Leslie