Cochrane’s 2013 residential and commercial property values may have experienced an overall increase from last year, but not to the extent the mayor and council were hoping.
During a presentation on Feb. 11, Mayor Truper McBride said he and council had expected property assessment values to experience a greater increase than the 3.92 per cent it had, indicating that the slower than anticipated growth could have an effect on tax rates, which will be established by council this spring.
Paige Milner, senior manager of corporate services for the town, indicated that they had expected growth to hit 4.5 per cent based on residential building activity. Milner said this shortfall would lead to the town’s tax levy to come up $260,000 light, but that the assessments would not be final until April 2 and, therefore, could be subject to change.
Assessment values are conducted based on economic conditions from July 1, 2012 combined with physical conditions of the property as of Dec. 31, 2012. They are based on how much a particular property would sell for if it were put on the market in July and in the same physical condition as it was in December.
Residential shifts during the past year show that single-family homes increased in value by .65 per cent, while duplex/fourplex and condominium units fell by 3.31 per cent and 9.65 per cent respectively.
The 2013 Average Residential Assessment Shift Report highlighted which Cochrane communities experienced the greatest upward and downward shifts in value.
Single-family homes in Fireside saw the largest increase at 26.9 per cent. Municipal assessor Suzette DeMott said the reason for Fireside’s increase was because it is one of the newest developments in Cochrane.
The largest decrease for single-family homes was found in Heartland, located off Highway 1A in west Cochrane, which fell by 13.02 per cent. DeMott said the fall was due to recent construction of starter-home units instead of high-end dwellings, which were being built on the site at the same time last year.
Duplex and fourplex units saw the biggest increase in the Riversong community, with downtown suffering a decrease of 11.46 per cent.
Condo units rose in value by 15.53 per cent at River Heights, and fell 9.67 per cent in Sunterra Ridge.
The average cost of single-family homes in Cochrane currently sits at $431,000 (highest in GlenEagles, lowest downtown); a duplex/fourplex has a median cost of $292,000 (highest GlenEagles, lowest in Glenbow); and a condo unit is $248,100 (highest in River Heights, lowest at Sunterra Ridge).
Commercial properties saw a rise in value of 10.19 per cent, with industrial increasing by 2.81 per cent and vacant non-residential having virtually no change, decreasing by .04 per cent for an overall 7.44 per cent increase for non-residential.
The assessment value was also established for what is known as the Central Revitalization Levy (CRL) area, which encompasses the Quarry site and some parcels of land to the northwest.
The total non-residential assessment base is $12,848,900, in addition to an approximate $6 million baseline value for a total of just under $19 million.
Council will set the tax rate for the CRL area this spring, and all revenue will be used for improvement capital projects within the designated area.
With an assessment open house scheduled for March 7, Cochrane property owners are encouraged to review their 2013 assessments and speak to an assessor if they have any concerns about shifts in value.
Taxation notices will be mailed on May 27 and payment will be due by June 28.
