LAC LA BICHE - Municipal taxes on residential properties in Lac La Biche County are going up — slightly. Municipal taxes are going up slightly less for businesses and industry in the rural areas of the County.
Councillors have agreed to a four percent residential tax and a one-and-a-half percent increase on industrial and commercial properties.
The rate increases are only on the municipal portion of tax notices that will be sent to ratepayers in the middle of May. The County’s tax bill also includes provincial requisitions to fund education and seniors’ lodges. Tax notices also include provincial 911requisitions.Those components of the overall tax notice are outside the control of the municipality. The tax notices are also based on property assessments where values may change from year over year.
Based on property assessment values from last year the 2024 municipal mill rate increases could add about $700,000 to the $70 million in tax revenues collected last year.
More than 85 per cent of taxes collected by the municipality come from commercial and industrial assessments in the rural service areas.
For the homeowner of a $400,000 residential property in the municipality, the four percent increase equates to an annual bump of about $50, or less five dollars a month.
Even with the increase, Lac La Biche County’s spokesperson Jihad Moghrabi says the municipality’s residential mill rate is still “among the lowest in Alberta.”
Lac La Biche County Mayor Paul Reutov says residents and business owners continue to get great service for the municipal taxes they pay.
"Lac La Biche County provides top-quality service to our residents, and we keep our taxes low," says Reutov. "Residents receive excellent value for their tax dollars. From well-maintained roads to a variety of recreation programs, along with our efforts to set up our community for growth with exciting new infrastructure like the New Aquatics Facility and our plans to become a law enforcement training hub for the province, the County will continue to attract new investment.”
The mayor says there are four main components to a successful community — healthcare, education, jobs, and amenities to improve quality of life. He says the tax rates are necessary to build on that foundation.
Lac La Biche County’s chief administrative officer says council has approved a blueprint that portrays financial responsibility and community growth.
“This is realistic fiscal planning, and I’m pleased that the mill rate bylaw passed to help us build a stronger tomorrow," says CAO Manny Deol. "We’re investing in essential services and infrastructure while maintaining financial responsibility, to build a sustainable and thriving environment for us all.”
Decreasing the gap
While municipal tax rates have been frozen or seen only moderate increases in recent years, the 2024 increase was made not only to generate a little more revenue and math rising expenses, but also to bring the range between industrial and residential rates closer together in the municipality.
A decade ago, the municipality’s industrial tax rate was more than seven-times higher than residential tax rates. In recent years, that ratio has been dropping, nearing a 5:1 ratio that has been mandated by the provincial government. With the slight increases in the coming tax year, the ratio has dropped to about 5.6 to 1.
The government continues to urge Lac La Biche County officials to bring the ratio down, telling local elected officials it needs to be done by council before provincial officials do it for them.
Lac La Biche County Mayor Paul Reutov said in almost all recent conversations with provincial politicians and senior bureaucrats, there has been a growing insistence to reduce the gap.
Tax notices will be sent out in the middle of May. Payments are due by July 2.
