Monday, April 27, 2015

No increase in 2015 mill rate for Town of Pincher Creek

Toni Lucas

The Town of Pincher Creek 2015 Mill rate unanimously passed third and final reading at the regular meeting of Town Council on Monday, April 27. The Town is required to pass a mill rate bylaw each year which determines the revenue necessary to meet the current municipal budget, school requisitions, and Pincher Creek Foundation requisition. This process is regulated under the Municipal Government Act (MGA). During first reading on Monday, April 13, CFO Wendy Catonio said "There was no increase in the municipal tax rate. Actually, the requisitions for both the school and Crestview decreased, and the overall assessments of the town went up, so the mill rate actually has gone down, slightly."

Mayor Don Anderberg said at that time "This is year one of a two-year operating budget, and year one of a four-year capital budget. The plan next year is to have an approved budget for next year with a 2% tax increase, but as we've discussed, we will take a look at that and see what situation we are in, and may do a budget adjustment next year, depending on the circumstances. But I think it is a good news story that we're at 0%."

Before the third and final reading of the mill rate on Monday, April 27 Councillor Doug Thornton said that he wanted to discuss a recent announcement in the provincial budget "That the government of Alberta is going to stop providing grants in lieu for our Alberta social housing units. It's my understanding that that will be an expense to the town of Pincher Creek directly, approximately $35,000 or one percent of our total tax bill." Although after some discussion council decided that they would not change the mill rate, but this projected shortfall may be addressed with a rise in the mill rate in the future.

The mill rate bylaw provides information to the ratepayers of Pincher Creek regarding the requisitions and municipal requirements of the Town.

The documentation laid out that the estimated municipal expenditures (net of amortization) and transfers set out in the budget for the Town of Pincher Creek for 2014 total $10,047,817 and estimated municipal revenues and transfers from all sources other than taxation is estimated at $5,954,078 leaving a balance of $4,094,318 to be raised by general municipal taxation.

The town has 5 requisitions:

  • Alberta School Foundation-Residential and Farmland $543,144
  • Alberta School Foundation-Non Residential $330,836
  • Holy Spirit RCSRD 4-Residential and Farmland $201,542
  • Holy Spirit RCSRD 4-Non Residential $51,101
  • Crestview Lodge $88,445

The assessed value of all property in the Town of Pincher Creek as shown on the assessment roll is $419,871,540  taken from combined values of Residential and Farmland - $312,099,860 and Non-Residential - $107,771,680.

(Item/Tax Levy/Assessment/Mill Rate)**:

Alberta SFF-Residential & Farmland   $543,144 /  $226,471,253 / 2.3983%
Alberta SFF-Non-Residential $330,836 / $93,180,194 / 3.5505%
Holy Spirit RCSRD 4-Residential & Farmland $201,542 / $84,035,897 / 2.3983%
Holy Spirit RCSRD 4-Non Residential $51,101 / $14,392,596 / 3.5505%
Crestview Lodge $88,445 / $418,278,830 / 0.2114%
Pincher Creek Emergency Services $170,842 / $419,871,540 / 0.4069%
Municipal Residential $2,751,909 / $312,099,860 / 8.8174%
Municipal, Non-Residential $1,171,564 / $107,771,680 / 10.8708%

This bylaw unanimously passed first reading and will come into effect after passing the third and final reading of the bylaw.

**A property tax (or millage tax) is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property. The property tax rate is often given as a percentage. It may also be expressed as a per mil (amount of tax per thousand currency units of property value), which is also known as a millage rate or mill (which is also one-thousandth of a currency unit). To calculate the property tax, the authority will multiply the assessed value of the property by the mill rate and then divide by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year. - sourced from Wikipedia
**Assessment is the value calculated as the basis for determining the amounts to be paid or assessed for tax purposes. - sourced from Wikipedia

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