COCHRANE— Cochrane Council's approval of the 2021 municipal property tax rate will see the average homeowner in Cochrane experience an $11 yearly decrease in taxes.
General manager of corporate services Katherine Van Keimpema provided insights on property taxes to council at the regular meeting Monday (May 10). The tax rate received unanimous approval from council and faced no debate.
The decrease in property taxes was largely brought on by a decrease of .63 per cent in residential taxable assessment accounting for the $11, or $0.92 a month, decrease this year. In 2020 the average single-family dwelling was assessed at $470,100. 2021 saw these assessments drop to $455,900 accounting for a 3.02 per cent decrease.
This change in assessment resulted in a .44 per cent decrease in the municipal tax levy for the average home. Van Keimpema cautioned the average assessment is based on single-dwelling residence and homeowners in Cochrane will see a mix of property tax assessments that fall above and below $11.
In contrast, the total non-residential taxable assessment increased by .49 per cent and will see municipal taxes increase by approximately 1.52 per cent on average.
The Town of Cochrane budget for 2021 earmarked municipal expenditures and transfers totalling $60,420,37. Municipal revenues and transfers from all sources, other than taxation, are estimated at $31,181,593.
In Cochrane more than $29.2 million will be generated through municipal taxes— Residential properties account for 85 per cent of property taxes and non-residential properties account for 15 per cent of property taxes. Van Keimpema said this split has been in place since 2018.
Van Keimpema said the final taxable assessment values for 2021 were $5.7 billion of which $5.02 billion is residential and $653 million is non–residential.
She added overall Cochrane's residential tax rates have held steady over the past 10 years.
Her team gathered tax rates spanning 10 years from several municipalities in the Edmonton and Calgary areas to compare to Cochrane. While then Town has higher residential tax rates then the majority of municipalities, outside of High River, Strathmore and Okotoks, the rates are consistent with similar communities.
Non-residential tax rates in Cochrane are significantly lower in comparison to similar communities with only the City of Leduc boasting a lower non-residential tax.
Cochrane residents were sent assessment notices for their properties in January. The assessed values are considered final, except for those with active complaints. Tax bills are scheduled to be in the mail no later than May 31. Residents are required to submit payment of taxes to the municipality on or before June 30.
Municipal property assessments are separate from education taxes which saw a 2.5 per cent increase in 2021. Cochrane will collect more than $15.5 million in Provincial Education taxes in 2021, a rise of $373,742 in comparison to 2020.
In support of affordable seniors’ housing options, the Rocky View Foundation requisitions operating funds from municipalities in the Rocky View region. Evergreen Manor and Big Hill Lodge located in Cochrane are under the Rocky View Foundation budget. The 2021 requisition for the foundation sits at $302,266, a $99,408 increase over 2020.
Rates for the Community Revitalization Levy were also set at the meeting and show the Town of Cochrane had an assessment roll of more than $13.6 million. The estimated revenues required for the payment of infrastructure and other costs associated with the redevelopment of properties in Community Revitalization Levy Areas in 2021 sit at $1,377,413.
The residential area within the Community Revitalization Levy area will see a tax rate of .0076331 per cent for $104,014 in taxes and non-residential will see a tax rate of .0105391 per cent for $1,273,398.
A Community Revitalization Levy was created by the province to accelerate the redevelopment of specific areas in a municipality. Council adopts this levy and it is applied to increases in assessed value to the properties within a certain area. In Cochrane, Community Revitalization Levy areas account for 57 acres in the downtown area.
Current Community Revitalization Levy projects receiving funding include the Centre Avenue rail crossing, Railway Street sidewalks and Centre Avenue commercial area landscaping.
Tying the bow on Cochrane money matters final reading was also given to the sanitary sewer service amendment bylaw.
Under the amendment, the Town will average the volume of water used by a household over six months and charge despite water use in summer months to the benefit of resident.
The concept of winter averaging is based on the principle that during winter months, water consumed at a typical residential household will end up in a sanitary sewer. While in the summer there are outdoor water uses that would not enter the sanitary system such as lawn and garden irrigation, and car washing. Issues arise when a customer uses less water in summer than the winter average.
Advancements in software capabilities allow programming to automatically adjust accounts enhancing the transparency and accuracy of utility account billing. By amending the bylaw, Town administration can invoice residential customers who use less water in the summer than their winter average, at 100 per cent of water consumption.
