Cold Lake residents can rest easy knowing they won't be seeing their tax rates increase for 2019.
During discussions, the city decided against raising municipal taxes for this year, and instead, will pull the over $560,000 deficit from accumulated surplus.
“If council chose to do a zero per cent tax increase, we would have to amend the budget to reflect that (shortfall) and where that’s going to come from. Unless, for example, there’s cuts to the budget in terms of programs and services, or you’re utilizing surplus in order to offset that funding on your revenue side,” expressed CAO Kevin Nagoya during the city's corporate priorities meeting on Tuesday, May 21.
In order to balance the city's $52-million operating budget, the municipality needs to generate roughly $21-million in tax revenue.
Mayor Craig Copeland explained this also includes money from user fees such as $3.4-million in water supply and distribution, over $2-million for wastewater collection, and about $2-million in solid waste, among others.
"When you add up those numbers, user fees help. We’re basically 100 per cent cost recovery in all of those centres,” he noted.
According to Linda Mortenson, general manager of corporate services, when council passed their 2019 budget, the city had originally forecasted a 3.07 per cent tax increase, "however, with all of the assessments coming in and the annexed property, we only need a 2.7 per cent average in order to meet the budget."
After reviewing their options, council asked Mortenson to go back to the drawing board.
They wanted administration to show them what holding the city's municipal residential tax rate at 8.2505, multi-family residential at 8.6490, and non-residential at 12.6079 would look like.
Annexed residential properties will see a 2.7663 tax rate for 2019, while farmland is at five, and non-residential is staying at 12.6079.
The rate for the education requisition is sitting at 2.7774 for residential and 3.7879 for non-residential. The Lakeland Lodge and Housing seniors requisition has a rate of .0893, while the Designated Industrial Property Requisition is .0786.
“We were discussing at the last council meeting that we’re not too excited about a tax increase, just because of the economy and the fact that there are a lot of people out there living pay cheque-to-pay cheque. I think we have a lot of outstanding taxes and I think we should try to keep it at zero this year,” exclaimed Coun. Duane Lay.
Mortenson explained if council decides against a jump in taxes, they would have to pull the funding from elsewhere.
“You would have to amend your budget to take the difference from accumulated surplus."
She continued, “If you don’t have an increase this year and you fund it from accumulated surplus, next year when you go to do the budget in December for 2020, you’re going to be short that money right off the hop."
Coun. Bob Buckle agreed businesses and families are struggling.
“I think we’re in a really difficult time in the community here, both businesses and individuals,” he stressed. “If we have it in our power at all to find a way of imposing a zero per cent tax increase, I think this is the year to do it."
At this time, the city is estimating the 2019 school requisition to ring in at about $6.8-million and have taken this into consideration when crunching numbers. Cold Lake's Lakeland Seniors' Foundation requisition is over $200,000 for this year.
The municipality's assessment saw a decrease of $96.8-million when compared to last year. The annexed lands increased their assessment by $7-million, and will generate roughly $31,500 in taxation revenue. Overall, the city saw $600,000 in growth and an inflationary decrease of $97.4-million.
One of the reasons the city saw such a significant decrease in assessments, is because of the demolition of properties in the Martineau area on 4 Wing Cold Lake.
Council decided to make their decision official at their next meeting.
