Town of Barrhead residents might not see an increase in their tax bill this year — this is despite an increase in the town’s mill rate.
That is what finance and administration director and interim chief administrative officer Kathy Vickery told councillors during a special April 17 budget meeting before they unanimously passed the 2019 Property Tax Bylaw that an increase to both the residential and non-residential property tax rate.
The mill rate is the amount of tax payable per dollar of the assessed value of a property calculated per $100,000 of assessed value.
The 2019 mill rate for residential and non-residential will increase 0.25 per cent to 8.4775 and 14.0905 per cent respectively.
The increase is expected to net the town an additional $95,512 in residential property tax and a $32,317 from non-residential property tax.
“What that means for residential properties of every $100,000 of assessed value taxes would increase $25, but that could be offset in changes to the market,” she said, the assessment on most single-family dwellings decreased by an average of 1.4 per cent. “I think it was something like 90 per cent of residential properties had a decrease in assessed value.”
Vickery added, the average non-residential assessment increased by 0.5 per cent.
The town also expects to bring in $88,465 in additional taxes due to new construction.
She noted the additional revenue will go towards capital projects or into reserves.
“So you are maintaining the pace for projects that are quite large,” Vickery said, referencing to the wastewater lagoon project, slatted at $1.75 million “The sludging of cells one and two, alone will be about $500,000.”
Vickery noted the province did not release the rate it requires municipalities to charge for the school requisition tax so the budget was prepared using last year’s rate of 2.6349 and 3,7474 for residential and non-residential respectively. The Barrhead District Social Housing Association (BDSHA) requisition remains virtually unchanged and as a result, will have a minimal effect on the overall tax notice.
She also noted, that starting in 2018, the province requires the town to collect the requisition for the assessment cost for designated industrial properties or linear assessment within its boundaries.
The aquatic centre debenture payment for the fourth straight year is noted as a separate line item and is at 0.5683 mills, a slight decrease over last year’s 0.5824 meaning the effect on each $100,000 of residential assessment will be $57.11.
Overall, Vickery said the changes to the residential tax rate, when the school and BDSHA requisitions and aquatic centre debenture are taken into account this year the overall net increase amounts to an increase of 2.2 per cent for residential and 1.8 per cent for non-residential.
2019 operating and capital budgets
Councillors also unanimously approved the 2019 operating and capital budgets.
The operating budget predicts revenue of $14,868,637 and expenses of $14,857,709 plus the amoritzation expense budget of $2,579,600, for a surplus of $10,928 and the capital revenues and expenses budget is $5,923,249.
About 34 per cent comes from property taxes estimated to be $5,060,783, while sales and user charges are expected to bring in 29 per cent or $4,378,523. The school and BDSHA requisitions are pegged at $1,462,920 and $57,845 respectively. Franchise fees, licences and permits are expected to bring in another $1,400,148 while government contributions and grants are estimated at $$1,373,620 and $589,517. The pool debentures is slated to bring in $290,581.
On the operating expenditure side, water, sewer, garbage and recycling the lion’s share or 22 per cent of the funds at $3,338,512. The next largest expenditure goes to recreation, which includes the aquatic centre, pool, parks, sportsgrounds and cemetery at $2,896,366. Public services and roads, storm sewer comes in next at $1,699,592 followed by protective services $1,555,305, school and BDSHA requisitions at $1,518,961, contributions to capital projects at $1,437,421 and administration i at $1,045,613. About $558,915 will be spent on development, communications, tourism and twinning while $452,423 will be spent on funding the Barrhead and District Family Community Support Services (FCSS). It should be noted at the unit of authority the town distributes the funds it receives from the province and the County of Barrhead as well as its own. Council and the combined airport and library category round off the expenditures at $224,148 and $130,453 respectively.
