Despite major capital projects in 2014 and a 3.7 per cent increase in taxes, most Leduc residents won’t see a significant increase in their tax bill this year. According to General Manager of Operations Irene Sasyniuk, the city’s ongoing growth means there is a larger pool to share the tax burden. In 2014, there is a 6 percent residential growth projected and eight per cent in non-residential growth.
“New assessments in 2013 resulted in new money in 2014,” she said.
Assessment growth comes from new developments and new building projects and generates tax revenue for the city. While market value adjustments are taken into consideration, they do not generate new tax revenue as the City’s practice has been to reduce property tax rates equivalent to offset market value increases. Only homes whose value has increased or decreased contrary to the overall average will see a significant impact compared to the average.
The 3.7 per cent increase includes a two per cent levy for Protective Services.
The Provincial School Tax requisition is also going up by 6.7 per cent, but again, because of the city’s growth, there won’t be a significant impact on most Leduc home owners. Non-residential taxpayers, however, will be harder hit by the increase because of higher assessment growth than the provincial average.
While the city needs to collect $47,686,439 this year to pay for the west end fire hall, two additional RCMP officers and two support staff, transit expansion, economic development, renovations on the library, the Alexandra Outdoor Pool and creation of a spray park at Alexandra Park, and the Westhave K-9 school, homes with an assessed value of $345,000 will only see taxes increase by about $47. “We only collect from our citizens what we need,” said Mayor Greg Krischke.
Council approved first reading of the 2014 Property Tax Mill Rate Bylaw. Second and third reading will be brought before council at the April 28 meeting.