Lacombe County Council approves 2023 final budgets and tax rates

At its April 27, 2023 meeting, Council approved the Lacombe County 2023 operating and capital budgets and tax rate bylaw, including a 0% increase to the County’s portion of municipal taxes.

“Lacombe County continues to focus on responsible spending while ensuring the services our ratepayers receive continue to be well-managed,” said Lacombe County Reeve Barb Shepherd. “With inflation on day-to-day goods being such a challenge to residents, we wanted to keep property tax increases to a minimum. And with overall assessments coming in higher than expected – specifically due to residential growth and market increases, and increased Machinery & Equipment (M&E) assessments – we were able to maintain our municipal tax rate for 2023 at the 2022 level”.

2023 Municipal Tax Rates

The 2023 tax rates and tax rate changes for Lacombe County, the provincial Policing Levy, Alberta Education, and the Lacombe Foundation are as follows:

2023 Tax Rates

*(Municipal Rate, in addition to the Police Levy, Alberta Education and Lacombe Foundation) 

2023 Tax Rate Changes

Based on the new rates, 2023 property taxes on a $400,000 residence in Lacombe County will be $2,048.36, decreasing $76.44 from 2022. Market values for residential will vary significantly in 2023.  As the assessed value of each residential property is based on its market value, the actual property tax change will vary from property to property.

Please note: the property tax payment deadline is August 31, 2023.

Click here to find more Budget 2023 details

Impact of Levies on Tax Rates

In April 2020, the Province began charging urban municipalities with populations less than 5,000 and all rural municipalities for policing. In 2023, these municipalities will be responsible for 30% of the costs of policing in the communities, compared to 20% in 2022. For Lacombe County, this will be $1,206,980 in 2023, compared to $802,920 in 2022. Council has directed that funding of the policing levy be collected through a uniform tax rate applied to all taxable properties. This tax rate will appear separately on the County’s property tax notices.

Education taxes represent 45% of the 2023 tax bill for residential property owners in Lacombe County, and 38% of the 2023 tax bill for non-residential property owners. The official 2023 Alberta School Fund Requisition was released in early 2023 and identified a $0.09/$1,000 decrease for residential and farmland and a $0.14/$1,000 decrease for non-residential Provincial school tax rates.

Operating Budget Details

The 2023 operating budget of $65,149,770 includes $12,470,190 in requisitions for the Lacombe Foundation, Designated Industrial Properties (DIP) assessment preparation, and Alberta Education, as well as $1,206,980 for Policing.

In addition to including the final requisition estimates, several other changes have been made to the operating budget as part of this final approval. These changes include:

• Reduction of funding from tax rate stabilization reserve - $48,690
• Cameras for the office parking lot as part of a waiting area for the Safe Exchange Program - $13,250
• Contribution to the new Lacombe Fire Hall - $250,000
• Contribution to the Protective Services Reserve for future contributions to Lacombe Fire Hall – $1,031,440
• Increase cost for upgraded Air Photos - $73,300
• One-time increase to Municipal Sustainability Initiative Operating Grant from the Province - $149,490

Capital Budget Details

Council also approved amendments to the $20,327,210 capital budget.  These changes include:

• Land acquisition and additional culvert costs for road construction projects
• Purchase of a server for video storage - $7,000
• A decrease in contract services for the Sandy Point Trail ($410,000)

The capital budget also includes the following:

• $11.02 million in road construction
• $2.75 million in bridge replacement projects
• Equipment and vehicle replacements of $5.85 million, decreasing by $2.82 million from 2022

Maximizing Value for Residents

Lacombe County Council directed that municipal tax rate increases be as low as possible while continuing to provide sustainable funding for operating and capital expenses in the year ahead and ensuring that Lacombe County infrastructure, assets and services are maintained at appropriate levels.

“Recognizing the struggles our residents have had with day-to-day inflation on food, gas, etc., the 2023 operating budget, capital budget, and municipal tax rates were established to provide for the continued delivery of a high level of services and programs for our citizens in the most cost-effective manner possible,” said County Manager Tim Timmons.