BARRHEAD - County of Barrhead councillors felt the value their assessor evaluated a property was too high.
On Nov. 19, councillors set the reserve price on three properties that are to go to public auction in early December because they are in tax arrears for the 2021, 2022, and 2023 tax years.
Earlier in the meeting councillors approved the conditions of sale.
County manager Debbie Oyarzun reminded councillors that the process is highly regulated under Alberta's Municipal Government Act (MGA) and that property owners have until the auction to bring their accounts up to date.
"The reason why council has decided to hold the auction in December is to give ratepayers in arrears the maximum time to bring their accounts up to date [and not add the current year] that would add to their burden," she said.
Oyarzun noted that the most pertinent requirement under the MGA is that the property must be sold at or near market value, and as such, the municipality relies on its assessor to make that determination.
"All properties are sold 'as-is, where-is'," she said. "Once it's sold, the previous landowner has no obligation to pay any taxes in arrears."
Oyarzun said if the property doesn't sell, the municipality can initiate the lengthy process if it chooses to own the land.
The assessor set the first property, a 12,250-square-foot parcel in the Lightning Bay subdivision in Thunder Lake, at $65,000. Council accepted the assessor's recommendation, setting the reserve bid price at $65,000.
The assessor noted that the property has all trees, with no buildings visible, and appears to have a shared approach, septic, and water, similar to other lots in the subdivision.
Oyarzun said anyone who buys the property needs to follow and conform to the Lightning Bay Condominium Association's regulations.
The next property is a 3.11-acre parcel 24 kilometres southeast of Barrhead along Highway 651, assessed at $100,000. The assessor noted that the property has an old, 1975 vacant mobile home. While there is a powerline going to it, there is no electrical meter, nor are there any signs it is serviced by propane or natural gas.
Oyarzun noted that the assessor had observed a septic tank and a drilled well.
He added that the neighbouring lot, which was vacant and unserviced, sold for $64,500 in 2022.
Coun. Bill Lane interjected that a few years ago, the county did a court-authorized cleanup of the property, the cost of which was added to the tax roll.
Reeve Doug Drozd and Coun. Ron Kleinfeldt felt that the assessor missed the mark, saying the assessed value was too high.
"I don't know what the condition of the well and septic tank would be on a property like that," Drozd said.
Deputy reeve Marvin Schatz and Lane argued that the neighbouring, unserviced lot sold for $65,000 two years ago.
"The services have to be worth $30,000," Schatz said. "At least," Lane chimed in.
However, Drozd suggested that it was doubtful they added that much value as their status was in question.
"Do they even work?" he asked. "And at $100,000, they still have to clean up the rest of the mess."
After several minutes, council lowered the reserve to $90,000.
The third property, a 10-acre parcel about 24 kilometres southeast of Barrhead, was also assessed at $100,000. It has no electricity, nor did the assessor find evidence that it was serviced by propane or natural gas, but suspects that it has a water and septic source as an old 1973 mobile on the property. Council set the reserve price at the recommended value.
Barry Kerton, TownandCountryToday.com
