Strathmore could face property tax hike

Times Reporter     

 

A substantial property tax increase could be on its way in 2015 for Strathmore residents, warned Chief Administrative Officer Dwight Stanford at the Oct. 1 council meeting. 

“There’s a very good possibility there will have to be a property tax increase for 2015. As Mel (Tiede) mentioned earlier, the CPI for the Calgary area is 3.2 per cent. Council approved four additional staff members on Aug. 13, the effect on the budget equates to approximately three per cent of our net municipal property taxes,” said Stanford. 

“The Family Centre, Aquatic Centre and Civic Centre have an annual operating deficit of $2.4 million combined, the deficit is supported by property taxes, it comes out of the $9.9 million of net municipal taxes. Fuel and operating costs for equipment continues to escalate the fixed charges for electricity and natural gas are expected to go up.”

In the new residential areas, the town will be gradually taking over the lighting and paying those lighting costs which is quite a bit. One of the positives on that, said Stanford, is the town has told the developers they will have to put in LED lighting. There are also costs with some of the outer roads – there are operating costs of grading and maintaining the roads. The 2015 budget is going to be a really tough budget and council is going to have to decide what to do at the budget meeting in November. 

“There could be a pretty good tax increase, or some cutting, or we have to take out of the financial stabilization reserve. Traditionally we don’t like to take money out of that for operating costs,” said Stanford. 

He said he wanted to throw that out so that council and the public are aware.