Strathmore property taxes increasing
By Sean Feagan, Local Journalism Initiative Reporter
Property taxes are on the rise in Strathmore as town council passed the 2020 tax rate bylaw during its regular meeting on May 6.
Residential property owners will pay about 2.3 per cent more property taxes compared to last year, while owners of commercial or industrial properties will pay three per cent more. Taxes were previously increased in 2017, 2018 and 2019.
The amount of tax a property owner owes is the product of the assessed value of the property and the tax rate, known as the mill rate. The mill rate represents the amount of tax dollars owed, in units of one-thousandth of a dollar, per dollar of assessed property value.
For residential properties, the total mill rate is increasing by 0.235 mills, from 8.907 mills in 2019 to 9.142 mills in 2020. For non-residential properties, which includes commercial, industrial and utility properties, the mill rate is increasing from 11.3 to 11.639, an increase of 0.339 mills.
An owner of a house with an assessed value of $350,000 will now be charged $82 more in property taxes compared to last year (from $3,117 to $3,199), whereas an owner of a commercial facility of the same assessed value will be charged $118 more (from $3,955 to $4,073).
The rate increase will make up for a lower total value of assessed properties across Strathmore, as reported by Mel Tiede, Town of Strathmore director of corporate services. The total value of taxable properties across Strathmore, referred to as the property assessment roll, declined in 2020 by about $12 million or 0.6 per cent, said Tiede.
The total mill rate is composed of multiple components, each with separate equivalent mill rates and funding destination.
The general municipal component funds the Town of Strathmore. This component increased for residential properties from 6.099 in 2019 to 6.452 in 2020, an increase of about 5.8 per cent. For non-residential properties, the equivalent mill rate of the municipal component increased from 7.289 in 2019 to 7.793 in 2020, an increase of about 6.9 per cent.
A component of the total tax rate is the education property tax, the rate of which is set by the province’s Ministry of Municipal Affairs. In Strathmore, these funds are either allocated to the Alberta School Foundation Fund (ASFF) for public school allocation or to Christ the Redeemer School Division (CRSD).
Less funds are being collected for education compared to last year. For residential properties, the mill rate of the ASFF/CSRD education property tax component each decreased from 2.734 in 2019 to 2.616 in 2020, a decrease of about 4.3 per cent. This component decreased for non-residential properties by about 4.2 per cent, from 3.937 in 2019 to 3.772 in 2020. However, the government of Alberta has announced that for businesses, collection of non-residential education property tax will be deferred six months.
There was no change to the Wheatland Lodge component funding seniors’ housing (equivalent mill rate of 0.074 in 2019 and 2020), while a component for designated industrial properties increased slightly, from 0.079 in 2019 to 0.081 in 2020.
The increases were necessary because there are several areas where fixed costs are increasing, despite cost-saving measures by the town, said Geoff Person, Town of Strathmore communications strategist.
“The Town of Strathmore worked diligently to find greater efficiencies in its programs and services throughout 2019,” said Person in a written statement. “However, several areas of expenses have fixed increases each year. Strathmore’s services and amenities deliver a high quality of life for our community and are key to attracting new residents and businesses. Citizen feedback highlighted the importance of protecting these services, while ensuring long-term financial stability.”
The amount of the increase was based on the amount needed for a balanced budget, said Person.
“The Alberta government requires municipalities to approve a balanced budget,” he said. “Break-even rates on programs and services are forecast into the budget to provide a total of expenses. Revenue sources, including property taxes, fees, and grants from other levels of government, must then match this total.”