If property owners in the Town of Barrhead see an increase in their tax notice it won’t be because of a millrate increase.
On April 25, councillors approved 6-1 both the 2017 operating and capital budgets, which call for a zero per cent increase to the millrate. Coun. Ryan Warehime was opposed.
Council adopted the 2017 operating budget with revenues of $13,476,285 and expenses of $13,465,776, for a surplus of $10,509. At the same time they approved the capital revenues and expenses budget of $9,650,333.
“Bottom line there is no tax rate increase,” said mayor Gerry St. Pierre.
Coun. Leslie Penny said they worked hard towards ensuring any tax rate increase was kept to a minimum or zero.
“This budget balances the things we need as a community while keeping it affordable for our residents,” she said.
Coun. Ryan Warehime said there are many things in the budget to be positive about.
“For the most part I agree with almost every line item of this budget, except for one and that is why I will not be supporting it,” he said.
The line item Warehime referred to was a trade waste capital expense item for a new automated garbage truck at a cost of $400,000 and another $175,000 for associated equipment.
“I spoke before (in December when councillors passed the interim budget) in opposition of changing our garbage service pickup,” he said, noting since he has been on council he hasn’t received one complaint about the service. “I think it’s something we can be proud of. Sure it is an old-fashioned way of doing things, but it works. I believe we are spending money to fix a problem that isn’t there.”
Penny concluded discussion by saying the town’s financial position could improve even more depending on what the arbitrator decides regarding the ongoing recreational agreement dispute with the County of Barrhead.
In late March, the town and county received a letter from Municipal Affairs minister Shaye Anderson stating he would appoint an arbitrator who will “issue a binding order that both municipalities will adopt to resolve this matter.”
St. Pierre agreed, adding the budget presented was based on the status quo.
“We have faith that there will truly be significant improvements, but we can’t take that into consideration until it happens,” he said.
The mill rate is 7.9775 per cent, while non-residential has been set at 13.5905 per cent.
The school portion for residential tax rates for residential properties has increased slightly to 2.5761 mills, from 2.46868, which equates to $8.93 per $100,000 of assessed value.
For non-residential properties the school portion of the tax rate will increase from 3.5607 mills to 3.6055 mills, which will equate to an extra $4.48 per $100,000 of assessed value.
CAO Martin Taylor noted the Barrhead District Social Housing Association requisition remains virtually unchanged and as a result, will have a minimal affect on the overall tax notice.
The budget also notes that residential property values have dropped slightly over the last year with the majority of residential single-family assessments decreasing an average of 0.6 per cent. However, the majority of non-residential assessments increased by an average of three per cent.
The aquatic centre debenture payment for the second straight year is noted as a separate line item and is at 0.5824 mills, meaning the effect on each $100,000 of residential assessment will be $58.24.
As for the Agrena, administration expects it to have an operational deficit of $457,081, with the town paying the lions’ share. The town expects to contribute $394,543 (86 per cent) while the county announced its portion at $62,538 (14 per cent) on April 18.
In the first partial year of the aquatic centre operation administration estimates it will have an operating deficit of about $451,937 — once again with the town responsible for the bulk at $397,649. When the budget document was created the county had not informed the town of what it will contribute, but they estimate it will be about $54,000.
The town will be mailing out property tax notices starting this week.
