At its May 27, 2021 meeting, Council approved the Lacombe County 2021 operating and capital budgets and tax rate bylaw. Taking into consideration the challenging year residents and businesses faced, Lacombe County Council voted in favour of a 0% increase in municipal tax rates for all property classes. This is the second year in a row that Council has frozen municipal tax rates.
“Maintaining the services our ratepayers expect is crucial, and Lacombe County continues to be focused on reduced spending and smarter spending,” said Lacombe County Reeve Paula Law. “We recognize the uncertainty felt by our ratepayers caused by many factors, especially over the past year, and did not want to add to their stress by increasing municipal tax rates.”
2021 Municipal Tax Rates
The 2021 tax rate changes for Lacombe County, the provincial Policing Levy, Alberta Education, and the Lacombe Foundation are as follows:
2021 Tax Rate Changes
|
|
Residential |
Farmland |
Non-Residential |
M&E |
|
Lacombe County |
0% |
0% |
0% |
0% |
|
Policing Levy |
93.53% |
93.53% |
93.53% |
93.53% |
|
Alberta Education |
0.23% |
0.23% |
3.32% |
n/a |
|
Lacombe Foundation |
0% |
0% |
0% |
0% |
|
|
|
|
|
|
|
Combined Total |
0.91% |
0.60% |
1.76% |
0.75% |
Effective April 1, 2020, the Province began charging all municipalities for policing costs. In 2021, municipalities are responsible for 15% compared to 10% in 2020. This proportion increases annually, topping out at 30% after year four. Council has directed to fund the policing cost by a uniform tax rate applied against all taxable properties. This tax rate will appear on the County’s property tax notices.
Education taxes represent 49% of the 2021 tax bill for residential property owners in Lacombe County and 40% of the 2021 tax bill for non-residential property owners.
Based on the new rates, 2021 property taxes on a $400,000 residence in Lacombe County will be $2,115.20, increasing $19.16 from 2020. Residential property owners who experienced a decrease in the market value of their properties of greater than 2.06% will see a reduction in their property taxes.
Please note: the property tax payment deadline is to September 30, 2021.
Budget Details
The 2021 operating budget of $68,879,560 includes $12,460,850 in requisitions for the Lacombe Foundation requisition, designated industrial property requisition, and the Alberta Education Requisition. In addition to including the final requisition estimates, several minor changes have been made to the operating budget as part of this final approval. Highlights of include:
- Reduction of WCB costs as a result of lower premiums and Partnership In Injury Reduction rebate – ($79,270)
- Inclusion of the Agriculture Services Board Resource Management Grant to reflect reinstatement of grant program – $60,000
- Increase in water surface leases – $15,000;
- Increase and Adjustments to the utilization of Federal and Provincial grant funds:
- Federal Gas Tax Fund Bridge File 1477 - $330,000
- MSI Capital Paving Township Road 39-0 - $230,000
- Municipal Operating Support Transfer carry forward - $187,750
- Additional COVID-19 expenses funded by MOST funding - $187,750;
- Increase in contribution to Lacombe Joint Economic Area - $9,560
- Addition of Economic Development position and expenses - $80,820;
- Increase in fuel prices - $319,750
Council also approved amendments to the $19,981,430 capital budget. Changes include:
- Addition of paving of Township Road 39-0, omitted in the interim budget - $230,000;
- Addition of emergency repairs on Bridge File 1477 - $330,000;
- Addition of IT upgrades to Council Chambers and Joffre Room - $35,100
- Addition of the Sunbreaker Cove Wastewater line - $750,000
The capital budget also included:
- Road projects for 2021 - $12.6 million
- Bridge projects, including both replacements and engineering - $4.4 million
- Equipment and vehicle replacements - $2.2 million
- Construction contribution to the Sunbreaker Cove Wastewater Project - $750,000
Maximizing Value for Residents
Lacombe County Council directed that municipal tax rate increases be as low as possible while still providing 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.
“The 2021 operating budget, capital budget, and municipal tax rates have been established in a manner which provides 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.