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No increase in the mill rate for Town of Barrhead residents

Councillors approve 2020 budget that shows a small surplus of $17,946
Coun. Rod Klump, April 28, 2020-cropped
Coun. Rod Klumph applauded administration for coming up with a surplus budget without having to raise the mill rate.

BARRHEAD-For the first time in three years, the Town of Barrhead residents will not see an increase in the mill rate.

That is what finance and administration director Kathy Vickery informed councillors during April 28 council meeting shortly before councillors unanimously put their stamp of approval on the municipality's 2020 operating and capital budgets.

The mill rate is the amount of tax payable per dollar of the assessed value of a property calculated per $100,000 of assessed value.

Normally the mill rate is presented to councillors at a special budget meeting in which the mill rate is passed as a bylaw separately from the capital and operating budgets.

Due to the coronavirus outbreak and social distancing restrictions, councillors decided to combine meetings.

The mill rate for 2020 for residential properties is set at 8.4775 per cent.

For the fifth straight year, the aquatic centre debenture payment will be noted as a separate line item and is set at 0.5782 per cent up from 0.5683. The increase is expected to cost an additional $5.88 per $100,000 of assessment.

The non-residential mill rate is also been unchanged from 2019 and remains at 14.0905 per cent. However, as in the case of residential properties, when the debenture rate is added in the net result is an increase of 1.35 per cent from last year and an additional $25.23 per $100,000 of assessment.

However, although the residential and non-residential mill rates are unchanged the municipality expects to receive less revenue from both residential and non-residential property taxes due to lower assessment values. In 2020, the residential taxable assessment is pegged at $374,494,930 down from $381,660,440 in 2019.

The non-residential assessment also decreased going from $128,924,040 in 2019 to $128,054,100. Most residential single-family assessments decreased an average of 2.1 per cent while non-residential assessments 0.1 per cent.

The school portion of residential tax rates for residential properties has increased slightly in 2020 to 2.6763 mills, from 2.6349 which equates to $4.14 per $100,000 of assessed value.

For non-residential properties, the school portion of the tax rate increases from 3.9823 mills to 3.7474 mills, which will equate to an extra $23.49 per $100,000 of assessed value.

The Barrhead District Social Housing Association requisition remains virtually unchanged and as a result, will have a minimal effect on the overall tax notice going from $57,754 in 2019 to $60,477 in 2020.

Coun. Ty Asaff was surprised that the amount the municipality has to collect on behalf of the province for education has increased.

"Were we not told by the province that they wouldn't increase the rate?"

Vickery explained that the percentage is based on changes in a municipality's assessment base.

"And yes, they did increase that rate," she said.

Coun. Rod Klumph applauded administration's work to keep the mill rate frozen.

"The assessment rate, especially for residential, has taken quite a hit in terms of their net worth," he said. "I think the council is going in the right direction not asking residents for an increase at this time."

2020 operating and capital budgets

The operating budget predicts revenue of $14,515,061 and expenses of $14,497,115 plus the amortization expense budget of $1,920,200 for a surplus of $17,946.

The capital revenue and expenses budget is pegged at $7,814,624.

On the operating revenue side, the property taxes and linear assessment is the largest revenue source estimated at $4,979,279 or (34.3 per cent). Franchise fees, licences and permits are expected to bring in another $1,389,042 while government contributions and grants are estimated at $1,388520 and $676,532 respectively. Property taxes from the aquatics centre debenture is expected to bring in another $290,551. The municipality will also draw $102,613 from its operating reserves.

The municipality will also collect $1,542,563 in requisitions, $1,482,017 for schools and $60,546 for social housing (Barrhead and District Social Housing Association (BDSA)).

On the operating expenditure side, water, sewer, garbage and recycling the lion's share of the funds at $3,489,962. The next largest expenditure goes to recreation, which includes the aquatic centre, pool, parks, sportsgrounds and cemetery at $2,437,987. Public services and roads, storm sewer comes, in next at $1,709,626 followed by protective services $1,639,164, school and BDSHA requisitions at $1,588,590 contributions to capital projects at $1,351,042 and administration at $1,021,189. About $433,125 will be spent on development, communications, tourism and twinning while $452,423. The final two operating categories are Barrhead and District Family Support Services (FCSS) and the library and airport at $467,423and $134,012, respectively.

Barry Kerton, TownandCountryToday.com

 


Barry Kerton

About the Author: Barry Kerton

Barry Kerton is the managing editor of the Barrhead Leader, joining the paper in 2014. He covers news, municipal politics and sports.
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