BARRHEAD - Town of Barrhead residents will most likely see a hike in their residential bump in their 2025 property tax bill.
This is because the municipality's final 2025 budget, which the council approved during its Jan 14 meeting, includes a one-percent increase to the mill rate for both residential and non-residential properties.
The tentative tax rate for residential and non-residential properties is 8.8907 and 14.7773 per cent, respectively.
However, corporate service director Jennifer Mantay said the property tax increase for both residential and non-residential properties (i.e. commercial, industrial, farmland and designated equipment) wouldn't be final until council approves its Property Tax Bylaw in the spring after the municipality receives the final information on assessment value and requisitions from the province.
Under the province's Municipal Government Act, the mill rate is approved separately as part of the Property Tax Bylaw, which is expected to happen in the spring.
Operational budget
The 2025 operational budget is pegged at $16,696,710, with expenses projected at $16,680,680, accounting for a small surplus of just over $16,000.
Mantay noted the increase will bring in an estimated additional $55,000 in tax revenue for the municipality.
On the revenue side, property taxes account for the largest portion of the operational budget at $5,640,817, followed by sales and user fees at $4,929,430, franchise fees, licenses, rentals and permits at $1,9580,450, local government contributions at $1,449,350, and school requisition at $1,474,034. The latter is a flow-through that municipalities collect on the provincial government's behalf.
Rounding out the bottom categories of operational income are grants from higher levels of government at $690,400, the majority of which is the province's Local Government Fiscal Framework contribution, aquatics centre debenture at $290,595 and social housing requisition at $115,824.
On the operational expenditure side, maintaining the municipality's utilities (water, sewer, garbage and recycling) accounts for the largest expenditure in 2025 at $4,031,540, followed by recreation (which includes the municipal cemetery) at $3,425,780, public services (roads and storm sewers) at $1,997,460, protective services (police, bylaw and fire)at $1,979,360, provincial school and social housing requisitions at $1,630,480, administration at $1,114,210, contributions to capital projects at $865,030, development along with communications, tourism and twinning at $678,040, contribution to the Barrhead and District Family Community Social Services at $483,920, council at $342,660 and airport maintenance and Barrhead Public Library contribution at $132,200.
Capital Budget
The 2025 capital budget is set at $4,017,990, which includes $922,630 for additional contributions to reserves for future projects.
Notable projects include the addition of new sidewalks, engineering for 49A Street, completion of repairs to the water leak at the industrial reservoir, addition of permanent fencing for the dog park, construction of a bike skills area at the all-wheel park, and purchase of a new fire engine to replace Engine 33 with the County of Barrhead.
Coun. Rod Klumph asked how the administration could hold the mill rate increase to one percent while keeping the line on services, incorporating a 1.75 percent cost-of-living wage increase, and adding a new administrative assistant position for the director of planning, economic development and legislative services director.
"Many communities are looking at property tax increases upwards of six per cent," he said.
Mantay replied that the municipality expects to bring in an additional $140,000 due to a 3.4 per cent increase in assessment values that, when combined with the mill rate increase, allowed administration to effectively balance the budget.
Barry Kerton, TownandCountryToday.com
