WESTLOCK – Following back-to-back years of no tax increases, Town of Westlock ratepayers face a 1.9 per cent municipal property tax hike in 2022 that, combined with slight increases to utility charges, will see an “average” homeowner forking out an additional $73 annually.
At their March 29 meeting, town councillors voted 6-0 (Coun. Murtaza Jamaly was absent) to pass the municipality’s 2022-2025 operating budget, a 47-page document that counts
$19,1760,000 in revenues and expense, including $58,000 in 2021 surplus dollars to “act as a savings draw to balance revenues” for the coming year. Also unanimously passed that night as a companion document was the consolidated fees and rates bylaw No. 2017-01, amendment bylaw 2022-06, which includes a $3 increase to the water distribution rate but an equal decrease to the solid waste, organic and recycle collection rate — the additional $3 will also be charged to commercial, institutional, and industrial ratepayers.
In addition to a 1.9 per cent tax increase this year, the document predicts two per cent tax hikes in 2023 and 2024 for “for ongoing inflationary shifting and anticipation of increasing
labour costs.” The budget also accounts for a two per cent wage increase for union staffers, a 1.25 per cent increase for non-union employees and town councillors and $42,900 for an RCMP contract increase as per the “renegotiation by the federal government.”
As well, a new winter organics program will commence December 2022 on every third Thursday of the winter months and combine with the current program that runs April to November.
Mayor Ralph Leriger said he appreciated the work of council and administration on both documents, as well as the $8.1 million capital budget passed in late 2021, highlighting the fact there are no cuts to services — all five councillors positively commented on the budget process and the final document.
“I’m content with the modest increase that council and administration settled on. I think that by utilizing 2021 surplus dollars to offset the increase was the best alternative,” said Coun. Abby Keyes. “I know we’re in uncertain times globally, economically speaking and this tax rate will assist in putting the Town of Westlock in a better position to keep up with inflation and give taxpayers better programming and service levels.”
Added Leriger: “In fact, I think we’ve enhanced our service levels … there’s a little here, a little bit there and some of it is subtle, but it’s there.”
The mayor said the two years of no tax increases, deemed necessary during the COVID-19 pandemic, were achieved by putting less into reserves, which is “a concern over the long haul” as it limits needed maintenance and saving for large capital projects.
“I think what I appreciated most is the effort by admin and council to work together to find a balance,” said Leriger, noting the town is facing inflation pressures around five per cent. “So, while it’s really important to be the protector of the ratepayers’ money, as it has been recently pointed out, it is much, much more than that. You are also supposed to move your community forward and I think that’s what we’re doing. It feels like it.”
Added CAO Simone Wiley, noting work on this budget began last August: “Not only do we try to be protector of tax dollars, which is certainly everyone’s domain in public service, but to move your community forward and to look at levels of service that you provide your community and why you do it.”
Budget deep dive
Simply, what a person pays in property tax on their home or business is the mill rate, multiplied by the value of their property, then divided by 1,000.
The town is estimating a 1.19 per cent assessment jump for homes, while non-residential properties are slated to drop in value by 2.66 per cent.
The residential mill rate will rise from 9.9592 to 10.0289, up .69985 per cent, while the non-residential mill rate increases from 16.8033 to 17.5720, up roughly 4.57 per cent.
Administration’s briefing to council notes that a home valued at $250,000 in 2021 would have paid $2,489.80 in town taxes, while this year it will be valued at $252,975 and pay $2,537.06. In addition, the Homeland Housing requisition mill rate is increasing from .6144 to .6168 — using the above model, that charge will increase by $2.43 ($153.60 to $156.03). Meanwhile the Alberta Education requisition is dropping from 2.6905 to 2.6397 which equates to a $4.85 savings ($672.63 to $667.78) for a total tax bill of $3,360.87 compared to $3,316.06 in 2021.
On their monthly utility bills, residents will pay $3 more via a flat-water charge, but $3 less for garbage, plus small increases for 15 cubic metres of water and sewer fees.
Administration notes the increase to the water distribution rate is to, “assist in the rebuilding of the water/sewer reserve for capital construction purposes.”
When the tax and utility increases are combined using the $252,975 home model, a resident would end up paying an additional $72.92 per year, which equates a 1.54 per cent increase —$4,811.97 in total for 2022 compared to $4,739.05 in 2021.
Meanwhile a commercial property assessed at $500,000 in 2021 is slated to dip value to $486,700 in 2022. Considering the municipal, Homeland Housing (.6144 to .6168) and Alberta Education (4.0106 to 4.0837) mill rates, the total commercial tax bill on a $486,700 property rises to $10,840.03 from $10,714.15, a 1.17 per cent increase.
“I think our residents really need to be aware of how well our town is being run, just the efficiencies administration has found and the contracts that have been put in place,” said Coun. Jon Kramer. “We’re doing everything we can to be predictable. For our residents they don’t want to just wake up and see that’s it’s budget time and what are they getting a one, a two or a 10 or a 20? Administration has given us a reasonable and predictable increase.”
A busy year for projects
The town passed its $8.1 million 2022 capital budget Dec. 13, 2021, a document that outlines $4.44-million for a new public works shop and cold-storage facility, $1 million for demolition of Jubilee Arena, $200,000 towards the replacing equipment at Polymanth Playground, $80,000 for a water distribution leak detection system, plus $1,648,461 worth of carry forward projects from 2021 — a portion of that list includes $451,131 for improvements to 100th Street (108th Avenue to 115th Avenue) and $57,500 for an EV charger. Meanwhile, the remaining work on 108th Street, pegged at $713,164, remains on the list but won’t happen until 2023 — see more in a separate story.
Funding for the capital budget comes via $4.3 million in federal and provincial grants, $3.1 million from restricted and unrestricted reserves plus a $700,000 debenture specifically to pay for the public works shop, a project Coun. Randy Wold said “was long overdue.” He also noted that with the Rotary Spirit Centre now celebrating its 10th year it’s “great timing” to get rid of Jubilee.
