Rocky View County (RVC) council approved a three per cent tax increase April 22, which is in line with council’s mandate to keep tax rates constant.
Property assessments increased this year, with residential property value coming in at a total assessment of $11,317,104,540, up from the 2013 assessed value of $10,942,002,720.
Farmland assessments increased to $153,237,860 from the 2013 assessed property value of $153,006,600.
Non-residential property assessments increased to $2,959,635,630, up from 2013’s value of $2,702,334,430.
“Not everyone’s taxes will go up or down,” explained Grant Kaiser, manager of communications with RVC. “There are two variables – the tax a property owner pays depends on both the tax rate and the value of the property.”
To break it down, if the property was worth $100,000 in 2013, the resident paid about $237. If the same property were worth $100,000 in 2014, the resident would pay about $245 – three per cent more.
“Sometimes the value of a property drops or rises. Since the taxes are based on value, the taxes drop or rise, too,” Kaiser said. “So, if a property is worth $100,000 in 2013, but only $95,000 in 2014, the taxes will actually drop to $232 – less than last year – even though the tax rate is three per cent higher.”
Property taxes are the difference between the county’s total expenditure and the transfers and user fee collected.
The money raised from property taxes funds the county’s budgeted programs and grant money.
“Many people in the county will see a three per cent raise. Some will see less and some will see more, depending on how the value of their property changed from last year,” said Kaiser.
Residents will receive the assessed tax amount in the mail, and it is a one time yearly payment.
RVC councillor Bruce Kendall submitted a Notice of Motion April 22 for administration to prepare a report on implementing a Local Improvement Tax for Cochrane Lake for a permanent lake level management system and trail amenity.
The notice was submitted as per the Municipal Government Act (MGA), and therefore neither council nor staff could comment on the motion.
Staff will present a report on the possibility of an improvement tax as information to council at a later meeting; the date was not known as of press time.
The motion stated that, “Cochrane Lake levels have risen 1.55 metres above approved operation levels resulting in hardships and negative impacts to the residents in the area.”
Between 2011 and 2012, the county diverted 332,510 cubic metres of water into Cochrane’s Horse Creek because water levels in the lake were exceeding the maximum limit set out in a licensing agreement in 2004. The pumping cost was $250,000.
In 2013, Environment and Sustainable Resources Development began the pumping program again.
As of June 10, 2013, the lake was lowered about seven inches after pumping 481,145 cubic metres into Horse Creek.
RVC council began the public consultation process to see if residents would be in favour of the improvement tax in September 2013.
RVC council unanimously approved to move $240,000 to create a Flood Mitigation Fund.
Council also approved to move $221,400 from the 2014 operating budget to the tax stabilization reserve.
The moves came as council wraps up its budget deliberations.
Due to last June’s flood event, the county found it necessary to activate emergency measures and access emergency funding to mitigate flood damage.
This reserve will act as a placeholder to provide funding for past and future flooding events. “$240,000 isn’t going to go very far,” said Division 8 councillor Al Sacuta. “It sounds like a small amount.”
Byron Riemann, infrastructure and operations director with RVC, explained that the funds would be to concentrate on smaller, easier to fix flooding issues, rather than “big-ticket projects.”
Councillors debated whether or not the amount would be sufficient to cover flood mitigation efforts throughout the county.
“It should be a minimum of $2 million and we need to do this now,” said Division 2 councillor Jerry Arshinoff.
“(This fund) is grossly underfunded.”
Reimann explained the original amount was proposed to be $400,000, but council approved $160,000 April 8 for flood projects, which was reflected in the amount presented to council.
In the absence of a policy – as the fund was just approved – staff explained that identifying an initial figure was difficult, but once the policy is approved, the amount would increase.
The date of when the policy would be presented to council was unknown as of press time.
“If we’re going to fix the flooding issues, and solve the drainage problems let’s get serious, let’s raise taxes,” said councillor Lois Habberfield.
“If that’s our No. 1 priority (as a council to fix flooding issues), let’s get serious.”
Council unanimously approved to transfer $240,000 into the Flood Mitigation Fund.
