Homeowners in Rimbey are looking at a 2.7 per cent increase in the mill rate this year, although taxes will fluctuate depending on individual assessments.
Council approved the increase at its March 19 meeting.
CAO Lori Hillis noted that municipalities determine their tax rate by dividing the revenue requirement by the assessment base (the total value of all assessed properties in the municipality).
As well as property taxes, the town acquires its revenue through utility charges, recreation user fees, building permits and government grants.
This year the assessment base has slightly decreased, therefore the tax rate must go up in order to generate the tax dollars required to operate the municipality, she said.
“We needed to increase the mill rate slightly to ensure our level of service will continue,” said Mayor Rick Pankiw, noting that, even though the mill rate has increased, some homeowners may experience a decrease in their taxes depending on their assesment.
Hillis said the town is looking at a $6.2 million operating budget this year.
This includes salaries and benefits, ($1.9 million), council salaries and benefits ($135,000), services ($470,000) goods and utilities, ($1.7 million), local requisitions ($486,000), provincial requisitions ($892,000) and interest and debt repayments ($462,000). Reserve transfers have been budgeted at $119,500.
Revenue for the town for 2019 is budgeted at $3.7 million.
Sources of revenue include user fees and sale of goods ($1.64 million) government transfers, ($1.18 million), rentals, ($150,000), licenses and fines ($70,500), frontage ($112,000), penalties ($52,500) interest ($25,000), franchise ($505,000).
“With the revenue coming in and the expenses generated, we need to bring in $2.5 million from taxes,” Hill said.
“This allows us to continue to provide the same level of service. There will be no cuts to any service the town provides in 2019.”