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Mayoral candidates share ideas on taxes

Both mayoral challengers in Morinville say the town should expect small tax increases going forward but no big decreases. During the outgoing council's term, taxes in Morinville have increased 9.5 per cent and 5.

Both mayoral challengers in Morinville say the town should expect small tax increases going forward but no big decreases.

During the outgoing council's term, taxes in Morinville have increased 9.5 per cent and 5.5 per cent, but the town also continues to have some of the lowest property taxes in the Capital region.

Edmonton's annual survey puts the community at the bottom for a sample average house in the region and the middle when the average property taxes are worked out across the community.

Coun. Joseph Trapani said he expects the town will continue to see modest increases over the next three years, but there shouldn't be any major jumps.

"Nobody is ever comfortable on taxes, but the cost of living does go up and the cost of business does go up as well."

Both candidates say that the town suffered during a tax freeze during the 1990s because there was no money put into reserves and no improvements made.

Incumbent mayor Lloyd Bertschi said that approach forced the town to make larger than normal increases to repair the damage.

"We have had to have some fairly substantial increase to make sure that our community is sustainable in the long run, but I think that is behind us."

He said so much of what the town buys is subject to inflation that promising no increase doesn't make any sense.

"The things we buy are subject to inflation. Our staff wages, which is our largest expenditure, need adjustments as well and I just don't see how zero is even an option."

Trapani said he would like to see more done to get the public involved in the budget process.

"Maybe we need to come out with a form that we put in with the utility bill so we can show them this is what we are spending your money on and this is what you can expect in the way of an increase."

He said he only hears from residents when the tax notices land in the mail, which is often long after the budget has been spent.

Utility rates

While the Edmonton survey puts the town toward the bottom on taxes, Morinville tops the list in monthly utility costs.

According to the 2009 version, at $186 per month the town has the highest average cost in the entire region and when those costs are worked in with property taxes, Morinville moves to the middle of the pack.

The current council has increased the rates considerably over the last few years in a move to make the rates cover all the costs of operating the system, including replacement.

Both candidates say they would continue that approach.

Trapani said the utility rates have almost achieved full cost recovery and when they reach it, they will become stable.

He said too many utility customers don't pay property taxes and having taxpayers subsidize the utility system doesn't make sense.

"This way the users pay for the utility," he said. "The people who don't pay taxes are being subsidized by the people who are paying taxes."

Bertschi said he also supports that strategy because it looks to the future.

He said the town needs to plan for upgrades to the system like a new reservoir and other investments that will eventually be needed and now the town will have the funds.

"When the time comes for us to have to build it we will have the revenue for it."

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