Okotoks homeowners will be paying more on their tax bill in 2011.
Town council approved Okotoks’ 2011 operating budget on Monday afternoon, including a 3.5 per cent increase in the municipal share of its property taxes.
Mayor Bill Robertson said he supported the increase because the alternative would be to cut services which was something he didn’t want to do.
“I really think cutting services is not the answer, people want services,” he said. “They want to enjoy life in Okotoks, so I reluctantly agreed to the 3.5 per cent.”
Robertson said he’s satisfied with the budget because there isn’t much more room to reduce the tax increase without resorting to cuts.
He was pleased the increase was brought down from an earlier proposal to increase taxes by 5.23 per cent.
Residents’ final tax bill won’t be determined until the spring when the provincial government determines the education portion of tax bills.
The increase represents an additional $59 in taxes on a typical Okotoks home per year, bringing the municipal portion of taxes up to $1,758 on average. The typical home in town is identified as a three bedroom, two storey house with an attached garage between 1,500 and 1,800 square feet.
Town council approved a 3.2 per cent increase last year.
The Town will be putting less in the piggy bank this year. Council approved dropping the contribution to the recapitalization reserve by $170,000, and $27,500 less will be put in the recreation facilities capital reserve. (HOW MUCH ARE THEY PUTTING IN RESERVES TOTAL??)
Robertson doesn’t believe saving less this year will impact the Town in the long run. He said it’s still important the Town save for the future, but it wasn’t possible this year.
He said the increase meets the Municipal Price Index (which represents increase in costs to municipalities), which is 3.5 per cent.
The Consumer Price Index, the rate of inflation, was 2.4 per cent nationally and 1.2 per cent in Alberta in October.
Coun. Stephen Clark said the tax increase should have been lower — the increase should’ve been in line with the Alberta inflation rate, not the MPI.
In the end, he said homeowners’ costs are better reflected using inflation.
Clark supported the budget because it’s better than the first 5.23 per cent increase proposed and the budget process is better than last year.
“This was a supportable budget from my point because they’re making strides and there are efforts to right the ship,” he said. “I’m not happy but I’m happier than last year.”
Clark said a 6.9 per cent increase in operating spending is close to the town’s growth rate this year.
