BARRHEAD - Woodlands County property owners will see a three per cent increase to the mill rate in 2023.
Councillors approved the increase during their Dec. 21 meeting when they approved the municipality's 2023 operating and capital budgets.
The budget approvals come after roughly three months of discussions.
The increase is part of the county's five-year economic recovery plan, approved by the previous council in 2019.
Council approved the plan after the county failed to collect $9.5 million in unpaid property taxes, the bulk of which were from two large energy companies.
The crux of the plan was a 15 per cent service decrease along with a 15 per cent property tax increase phased in incrementally at three per cent a year. This year is the fourth year of the plan.
On the revenue side, the county projects it they will collect $27,611,217 in property taxes, with $4,344,234 coming from residential properties, while $11,775,698 and $11,491,288 coming from non-residential properties and electric power and pipeline linear assessment. The county also projects that it will collect $260,000 in general operating revenue and another $220,000 for the sale of goods and services. They also expect to collect $1,981,795 in other OWN, non-tax revenue sources, such as gravel levies, interest from various investments, and rental revenue. The municipality has also projected another $1,595,171 in grant revenue, mainly from the province and $230,315 from operating and capital reserves. The estimated total from all revenue sources is pegged at $31,899,499.
On the expense side, salaries and wages account for $6,975,160, with another $5,187,676 going out for contracted services along with $3,318,318 going to pay for contracts and agreements with other local governments and $2,903,809 projected for materials and supplies.
On the capital side, the budget is pegged at $11,043,066, with three million worth of projects funded through property taxes, another $850,316 through reallocation of existing funds and $6 million coming from debentures.
Of the 2023 expenditures funded from property tax revenue, the more notable includes $525,000 (with $132,000 carried forward from the 2022 budget) for a new fire truck; $450,000 for the six pickups (five, three-quarter and one, one-tonne); $540,000 for a tandem plow and sander; $600,000 (along with $720,000 from the 2022 budget) for 650 metres of improvements on the Old Blue Ridge Highway; $25,000 for improvements at the Anselmo water station and $25,000 for roof repairs at the Blue Ridge Fire Hall.
Reeve John Burrows noted that one of the reasons the municipality has chosen in recent years to approve the final operating and capital budgets prior to the new year and adjust it later, instead of passing an interim budget is that it gives administration more authority to work on the projects included in the budget.
Chief administrative officer Gordon Frank agreed, saying you have to prepare your budget so staff knows exactly what they have to work with for the upcoming year.
"And when we get our final numbers, such as the assessment from the province in late February to early March, we can make an adjustment to the revenue," he said. "Or if there are larger needs by May or June we can have those discussions with council, but in the meanwhile, it gives administration the ability to proceed with their operational requirements such as tendering out any capital expenditures needed as of Jan. 1."
