One of life’s certainties is on the rise in Drumheller.
The Drumheller Town Council, at the most recent meeting of the Committee of the Whole, had their first look at the proposed 2013 tax rate.
The bottom line for residents, is an average total increase, across all residential ratepayers in Drumheller, of 5.2 per cent, or $96.
The increase is due to a roughly 5 per cent increase in education tax and a large increase in the requisition asked for by the Drumheller and District Seniors Foundation. In both cases, the Town has no control over the requisitions.
“You have to put the caveat on there that the increase includes the education and seniors requisitions,” said Mayor Terry Yemen. “It’s a result of downloading from the province. They stepped away from seniors health care and put it on the backs of the municipalities.”
When looking at the municipal tax rate (minus the two requisitions), a roughly 3 per cent increase is proposed.
“We were going to maintain the 3 per cent increase each year for three years and we’ve done that,” said Mayor Yemen. “Some might see over a 3 per cent increase, because of their assessment.”
Bylaw 10.13, which will set the Town’s 2013 tax rate, proposes the residential mill rate be raised to 7.2268 and the commercial mill rate increase to 11.5074.
In the end, the Town aims to raise $7,712,073.02 in municipal taxes.
The requisitions for education and the Seniors Foundation total $2,743,254.69 and $362,234.78, respectively.
The other change in store for commercial taxes is the removal of the business tax earlier this year.
“Previously we had a business licence and business tax. The licence is based on what kind of business you’re running and the tax was based on the assessment of the property,” said Bill Wulff, Acting Director of Corporate Services. “We removed the business tax, but the money still has to come from somewhere. So, we added it to the commercial side of property taxes.”
Acting Director of Corporate Services for the Town of Drumheller Bill Wulff outlined the proposed tax rates for 2013. It is expected residents will see an average increase in total tax of 5.2 per cent or $96. The increase in largely due to a large jump in the requisitions for education and the Drumheller and District Seniors Foundation, which the Town cannot change.
Roughly $80,000 was expected to be raised from the business tax. Now, that amount will be collected from more accounts. Businesses who had paid the tax in previous years should see a reduction in that regard. However, others, who had not paid the business tax before, will see a slight increase.
“By doing that, the $80,000 is spread over a much larger assessment. Businesses paying the tax before will see a reduction,” said Wulff.
The tax rates have yet to be passed by Council. It is expected first reading will be held at the Monday, April 22, meeting of Town Council.
“It has to be brought back to Council for three readings. I don’t anticipate any changes to it, though,” said Mayor Yemen.
