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Turner Valley council still holding the line on municipal taxes

Council unanimously approved a 1.1 per cent increase over 2020 in the residential property tax rate, which councillors say should be offset by declines in assessed property values.
Turner Valley Sign
Turner Valley Town council approved its tax rate for residential and non-residential properties last week. (BRENT CALVER/Western Wheel)

Property owners in Turner Valley can expect to see little to no change in their municipal taxes this year.

During its May 3 meeting, Turner Valley Town council unanimously passed second and third readings for a 1.1 per cent increase in the residential property tax rate, compared to 2020, which councillors say should be offset by declines in the 2019 and 2020 assessed property values, resulting in a $9,784 surplus for the Town.

Council also approved no change to the tax rate for non-residential properties to assist businesses and elevate any substantial tax increases as 2020 assessed values were stable.

“The numbers were juggled to keep everything the same,” Mayor Barry Crane said in an interview after council’s decision. “Assessments went down, which would account for a small increase in the tax rate to balance that out and be exactly the same that residents have been paying for the last four years.”

Crane said it was important to council to continue holding the line on property tax after doing so the past three years.

“Council heard loud and clear that people believe we are paying too much in taxes, so we really wanted to take our term and address that head on,” he said. “That was tasked directly back to administration to find those savings every year to make the difference.”

Last fall, the Town approved a $5,685,221 operating budget for 2021, a $14,919 decline from 2020.

This year’s taxes are budgeted at $2,999,553, compared to $3,046,440 in 2020, representing a 1.6 per cent drop. Taxes represent approximately 53 per cent of the Town’s revenue.

By increasing the residential tax rate and leaving the non-residential rate the same as 2020, the Town will reduce the 2021 tax revenue deficit of $37,166 and recognize a surplus of $9,784.

Administration made cuts to operating expenses including a freeze on new hires, raises and cost of living allowance and cuts to low end services, overtime pay and the public works budget, said Crane.

“The fact that no one has noticed those reductions in service speaks volumes to how our public works and administrators filled the voids for public service delivery,” he said. “Reductions were made and we’re still seeing the services that are great quality from our staff. We’re very proud of a council where we started and where we’ve gotten to for maintaining zero percent increases for four years.”

The COVID-19 pandemic played a minor role in this year’s budget, with a reduction in revenue for facilities like the Dr. Lander Memorial Swimming Pool due to scaling back operating hours, and renting out the Flare ‘n’ Derrick Community Hall, said Crane.

He said the lost revenue has been offset with less staff time spent on organizing community events.

“That saves money on the operations side because we’re not putting the same amount of resources into Discovery Day and triathlons and all of those festivals we love so much as a community but, due to COVID, are taking a back seat,” he said.

Council’s decision to increase the residential tax rate and hold the line on the non-residential rate was the result of recommendations made by the Turner Valley Finance Advisory Committee during a meeting last month when members reviewed the 2020 assessment values and recommendations.

Council gave first reading to the bylaw at its April 19 meeting.

Crane admits it’s been a challenge on council and administration’s part to hold the line on property taxes within the town, but he said it was necessary.

“We hope that moving forward we can continue to be financially responsible for the ratepayers,” he said. “Our finance committee was tasked with doing the deep dive with financial numbers and administration did a great job in clarifying all of the needs and wants of our community and showing that our dollars are well spent for the services that we expect when we live in Turner Valley.”

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