Cochrane council unanimously approved a report for information for the town’s property tax design for 2013, which includes an increased fire tax levy.
Changes to the tax bill were presented by the town’s senior manager of corporate services, Paige Milner, who broke down the estimated numbers during the April 8 council meeting.
The key change slated for this year’s tax bill will be the increase of the fire tax levy. Council approved a 5.37 per cent property tax increase to fund the rising costs of fire services in 2013. Compared to 2012, this year’s fire tax increase will see an average jump of $123.50 per household.
This year, for the first time, the fire levy will appear separately on the tax bill. This isn’t to imply that residents haven’t been paying a fire services tax before, said Milner. Instead, she said the number is being pulled out of the municipal tax levy in an effort to be transparent with property owners.
The net cost of fire services for 2013 is $4,611,648, while the cost for municipal services — excluding fire services — is $13,660,249.
Taxes for fire services could change following the impending arbitration between the town and firefighter union this spring.
To make up for the increased fire tax levy, Milner said there are no plans to raise tax levies on any other municipal services.
“Council really wanted to ensure there were no other charges for town services,” she said.
Because Cochrane’s growth was 1.5 per cent less than the budget anticipated, the fire tax levy is short $90,000 and the municipal tax levy (without fire) is short $190,000.
Milner outlined a plan that recommended reducing the $190,000 shortfall from the municipal tax levy by adjusting 2013 budget items such as reducing the costs of power for roads and corporate properties, and increasing building permit revenue.
Also adding to the property tax increase this year is the town’s education requisition, which has increased 11 per cent since 2012 for a total of $9,628.913. Based on the average residential assessment of $431,000 and an estimated education rate of .00259, the education increase for Cochrane property owners is estimated at 8.17 per cent.
“At this point, the numbers are not final, but they are a good estimate of what residential property owners can expect,” said Milner.
Numbers will be finalized and presented to council for approval May 13.
Following May 13, Milner said there are plans to mail out samples of the new property tax bills to property owners. The new bills will detail tax rate calculations, along with the total taxes owing.
