 Top News - May 7, 2008 |
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| Council shaves increase |
By Bryan Alary
Staff Writer
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St. Albert homeowners will see an average 5.9 per cent increase on their municipal taxes this year — less than forecasts from two weeks ago.
Municipal property taxes for a typical $400,000 home will increase by $131, or $10.92 a month. Combined with a slight decrease in the provincial education levy charged per home, the overall tax bill for that home is $3,142.
Non-residential property owners face a 6.1 per cent municipal tax hike and a 4.6 per cent increase with the education tax.
The municipal increase is lower than the 8.77 per cent hike forecast for homeowners just two weeks ago, when council approved a $2.2-million taxpayer-funded subsidy for Servus Credit Union Place. The subsidy alone pushed up taxes by 3.68 per cent.
Council has since approved a $1.7-million package to rein in the increase.
"We are a council that listens," Coun. Roger Lemieux said, referring to the volume of feedback received about tax increases in recent weeks. "We had to listen to the public and we’ve done that. I’m very proud of the work we’ve done as council and also administration."
Council on Monday agreed to use $900,000 of a provincial operating grant to offset taxpayer-funded spending in the 2008 budget and transferred $350,000 from the stabilization reserve to further reduce taxes. Last week, council cut $461,500 from the city’s operating budget by lowering raises for non-union staff.
Record assessment
Although the tax relief measures cut away at the average tax hike, some homeowners will pay substantially more because of record increases in property values.
Residential property values spiked 59 per cent on average between July 2006 and July 2007. Properties that increased in value beyond the citywide average will see larger tax increases. Homes that increased less will result in smaller increases.
Two weeks ago, the city mailed out advisory letters to 4,500 homeowners most affected by rising property values. Most were on the affordable end of the market where demand exceeded supply — condominiums, townhouses, duplexes and older homes.
Some residents contacted by the Gazette last week indicated their taxes could go up as much as 41 per cent.
About a dozen residents showed up at city hall just before Monday’s meeting to protest the tax increases. Several other residents attended the meeting to share their concerns with council.
Lois Anderson expects the taxes for her Greenfield Estates condo will go up 19.5 per cent. She advocated for a separate tax rate for condos — an idea has been raised and rejected several times by council in the last few years.
"I am hanging by the skin of my teeth living in my condo," said Anderson, who is disabled and living well below the poverty cut-off. "I’m just waiting for the other shoe to drop — and this may be it — to have to move. And I have no idea where I’m going to go."
Bob Russell, a realtor and former city council member, believes this year’s assessments are out of touch with a real estate market that reached a plateau last spring.
"Taking a particular window and time of sales and applying that to taxes in 2008 is just unfair," Russell said.
Greg Dahlen, the city’s acting director of assessment, said the city follows provincial rules for market value assessment. That data is audited by the province, he said.
Dahlen said the city maintains data on each property in St. Albert — style of home, size of lot and other physical features. To determine annual assessments, he said that data is compared with sales of similar homes in the vicinity for the 12-month period up to July 1, 2007, the valuation date set by the province.
"It’s the same methodology, the same legislated guidelines for all municipalities and jurisdictions within the province of Alberta," Dahlen said.
Coun. James Burrows wants the city to go to greater lengths next year to explain how properties are assessed. He said mail-outs would essentially be "assessment 101" for property owners.
Council rejected the idea of placing a cap on property taxes, which administration explained would just shift sharp tax increases to other homeowners.
Lorie Garritty hopes the market will provide a solution to the sharpest increases.
"I do have some hope in that this, in some way, will balance out next year," Garritty said. "Hopefully those most affected this year will be least affected next year."
Garritty also issued a notice of motion to create a tax rebate plan for seniors. That idea will be debated at a future meeting.
The city will mail out tax notices on May 29. Any property owner who thinks their assessment is inaccurate has until July 7 to file an appeal.
Average tax increases
(Municipal and education levy)
Single-family homes: 5.4%
Duplexes, rowhouses, townhouses: 10.7%
Apartment condominiums: 14%
(Based on average assessment increases. Excludes new homes and homes under construction.) |
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