Got any spare $100s? County homeowners might need them to pay for a proposed $98 tax hike in this year's budget.
County council got its first formal look at the proposed 2012 budget Wednesday at the first of several special budget meetings. The budget, presented by acting county commissioner Ian McKay, projects a 7.42 per cent tax increase for most county residents. That works out to about $98 more on the tax bill for the average homeowner.
There are very few new items in this budget, McKay said in an interview. Apart from a $100,000 reserve fund for snow removal, almost all the dollars in the budget were needed just to maintain current service levels.
"A number of priorities will not be achieved in 2012," he told council, especially since the plan is to save money by leaving some positions vacant. "We are stretched thin and need to be realistic."
Cost creep
Administration had originally predicted a 13.9 per cent tax hike on account of debts, inflation, salaries, capital spending and reserve repayments, said Rick Wojtkiw, general manager of corporate services.
Staff proposed to trim this to 7.42 per cent by leaving five positions vacant, cutting training allowances and taking longer-term loans for bridges and roads. They hope to save about $200,000 by opening a county-owned gravel pit and also hope to realize additional revenue from rising residential property assessments.
The typical homeowner with a $420,520 home would pay about $1,409 in municipal taxes next year if this increase were approved, Wojtkiw said, or about $98 more than this year. Parkland County residents paid about $1,549 for a similar home this year, he added, while St. Albertans paid $2,965.
Add in predicted hikes to education and seniors levies, he continued (which the county does not control), and the average homeowner would see his tax bill rise by a total of $142 next year.
About 43 per cent of the county's money would go towards infrastructure if this budget were approved, McKay told council. The next biggest chunks would go towards administration (16 per cent) and utilities (12 per cent).
Question marks
McKay also flagged a number of items that council might want to consider adding to the budget.
Council would have to decide if it wanted to set aside cash to intervene in the Alberta Utilities Commission hearing for the Eastern Alberta Transmission line, for example. That line, if built, would start around Gibbons and end near Brooks. The commission recently suspended the hearing for that line at the province's request.
Next, it would have to address the growing cost of intersection improvements. The county needs about $11.6 million to upgrade 26 intersections in the near future, council learned at an October meeting, and may need to pass a road levy to get it.
And it would have to do something about its growing backlog of ditch repairs. Staff have fixed just 87 of the 196 ditches and culverts on their list for flood prevention this year, said transportation services manager Bob Stephen, and that list is growing faster than they can chip away at it.
Other items on the decision list include a new peace officer, a study for a Namao fire hall, full servicing for an industrial park and the 2012 census.
Staff will take council's feedback and create a detailed budget by Nov. 28, McKay said. Council is expected to debate the final budget on Dec. 13.
