Ratepayers in Westlock can expect a three-per-cent increase on the municipal portion of their property taxes in 2013.
That increase, combined with increases to both town utilities and private utility franchise fees, will result in the average homeowner who consumes an average amount of power and gas paying about $170 more this year.
Council passed three resolutions related to the 2013 budget at its Dec. 10 council meeting, following a presentation from finance director Julia Seppola — to advertise the proposed budget, to adopt an interim operating budget until such time as the budget is passed, and to approve a two-per-cent pay increase to non-union staff.
“We think it’s a good budget; we’re still in good shape. We’re living within our means, which is a good thing,” mayor Bruce Lennon said.
He added that council and administration have spent a lot of time going over the numbers and figuring out how to keep the increase as low as it is.
“We’ve gone over this, cutting here and cutting there to get it down to three per cent. We’re trying to minimize our impact on the local ratepayers,” he said.
The proposed three-per-cent increase does not include possible increases to the requisitions for schools and seniors’ housing, so ratepayers could end up with a total increase of more than three per cent to property taxes.
“Those two factors are pretty significant factors, which we have no control over,” Lennon said.
The tax increase will mean the taxes for a $250,000 house in town will increase by about $58.28 per year in property taxes, but other fee increases are also included in the budget.
The water rate will rise by $.10 per cubic metre, coupled with a proportional increase to sewer fees, which based on a consumption rate of 20 cubic metres per months will result in an additional $31.20 per year to each household.
Garbage fees will also rise by $1 per month, but that is meant to offset removing the fees for town residents for dumping large loads at the regional landfill. For residents who don’t use the landfill, however, that will mean an additional $12 per year.
The increases to franchise fees the town charges to private utilities, which council approved earlier this year, will mean utility companies pay more to the town, but that will ultimately be paid by utility customers. Seppola estimated that based on average consumption, the increases will amount to $30 for power and $40 for gas per year — a total of $70 annually.
The increased revenue will help to support the town’s annual capital and operating budgets.
On the capital side, the town will spend about $6.5 million, with the majority of that going to road and other infrastructure improvements around town — the biggest expenses include repairs to 108 Street in Whissellville and the service road parallel to Highway 44 from 110 Street to 106A Street.
With respect to operating expenses, Seppola noted several significant changes.
There are increased revenues totaling $892,000 from the property tax, franchise fee and utility increases, an operational budget surplus from last year, revenue from the Westlock Rotary Spirit Centre and some administrative charges to recover wage costs.
There will be an estimated increase of about $735,000.
The larger items under expenses include wage increases, along with the creation of two new full-time administrative positions, which will cost about $248,000.
The street repair budget is increasing by $143,000 and inflation will account for another $165,000.
Seppola said that having presented a draft budget to council she will prepare a one-page mail out for residents, who will then have the opportunity to provide feedback to administration. That feedback will be presented to council for further discussion, with the actual budget expected to be passed in early 2013.
