BARRHEAD - Town of Barrhead property owners will likely see a bump in their 2024 taxes.
This is because, as part of approving the final 2024 operating and capital budgets, during their Jan. 9 meeting, town councillors also approved the mill rate with a two per cent increase to municipal properties, including residential, non-residential, farmland and machinery and equipment.
However, corporate service director Jennifer Mantay said the property tax increase for both residential and non-residential properties (i.e. commercial and industrial) wouldn't be final until council approves its Property Tax Bylaw in the spring after the municipality receives the final information on assessment value and requisitions from the province.
Administration staff prepared the budget based on a 2024 residential assessment of $384 million and a no-residential assessment of $134 million. Based on these assessments, the two per cent tax increase is expected to net the municipality an extra $105,000.
Under the province's Municipal Government Act, the mill rate is approved separately as part of the Property Tax Bylaw despite being an integral part of the budget process.
In 2023, property tax rates increased by 1.8 per cent, the first increase since 2019.
Operating budget
The 2024 operating budget is pegged at $16.3 million, with revenue of $16.29 million and an amortization expense of $2.1 million. The result is a small surplus of nearly $15,000.
Mantay noted that most of the town's operational budget comes from municipal property taxes at $5.3 million or roughly 33 per cent. In comparison, 29 per cent or $4.7 million comes from sales and user charges, while 12 per cent just under $2 million comes from franchise fees, licences, rentals and permits. Other sources of revenue include school and social housing requisitions (collected on behalf of the province and Barrhead and District Social Housing Association), provincial and federal government grants, the Barrhead Regional Aquatics Centre levy and money drawn from reserves at $.5 million, nearly $800,000 and nearly $300,000, respectively.
On the expense side, maintaining the municipality's utilities (water, sewer, garbage and recycling) accounts for the largest expenditure in 2024 at $3.8 million followed by recreation (which also includes cemeteries) at $3.3 million protective services (police, fire and bylaw) at $2 million and public services (roads, storm and sewer) just under $2 million Requisitions for the province (school, social housing, linear), administration and IT, contributions to capital projects, development along with communications, tourism and twinning, Barrhead and District Family Support Services, and the airport and library round off the town's operating expenditures at $1.5 million $1 million, $1.1 million, $500,000, $483,000, and $127,000.
Capital Budget
The town's capital budget for 2024 is $5.9 million.
Some of the larger capital projects identified in this year's capital budget for public works include a complete road rehabilitation for 49A Street, including new water and sewer lines and storm gutters, a future street program design, continuation of the town's sidewalk revitalization program and the purchase of a new half-ton pickup.
Notable parks and recreation capital projects expected to begin or be completed in 2024 include the purchase of a new Zamboni, the creation of a mini stick area at the Agrena, a new basketball court for Lion's Park, upgrading the tennis courts, construction of a boardwalk observation deck, bowling alley building upgrades, additional security cameras for the aquatics centre, installation of a chlorine puck system at the swimming pool, overhauling of the curling rink ice plant compressor, permanent pit toilets for the all-wheel park.
Coun. Ty Assaf commended council and administration for the work done to keep the tax increase minimal.
"We are looking at a tentative two per cent increase when I've seen other communities are looking at anything from five to 10 per cent increases, which is crazy," he said, adding when councillors began the budget deliberation process, they initially projected a five to six per cent property tax increase.
