Richard Froese
South Peace News
Big Lakes County taxpayers will pay more in taxes after council voted to increase mill rates by just under five per cent.
At a special budget meeting April 19, council adopted a bylaw to increase tax mill rates for municipal taxes by 4.5 per cent for all property classes.
It is lower than a 5.9 per cent increase that administration recommended in the final budget and 6.1 per cent in the interim budget.
Reeve Robert Nygaard said an increase is warranted as costs continue to rise.
“If we don’t raise the mill rates now, we will have to raise them for a couple of years starting next year,” Nygaard said during discussion.
In the new tax bylaw, mill rates for residential and farmland increased to .004940.
Council raised the rates for non-residential, machinery and equipment, linear properties and power generation to .016152.
The increase will add about $70 in municipal taxes for a property assessed at $300,000, said Dave Reynolds, director of corporate services.
Big Lakes taxpayers got relief in their taxes in 2022 as council voted to freeze mill rates after a five per cent increase in 2021.
A mill rate increase of 4.5 per creates a net surplus to $2,263,597 for council to add $1,762,500 to capital reserves and $501,097 to operating reserves, Reynolds said.
Reserve funds are used to fund the ongoing capital replacement, rehabilitation and preventive maintenance of capital assets over their useful live, he added.
“By increasing the 2023 transfer to reserves by about $500,000 lessens the prospect that the county may need to borrow for some future capital projects,” Reynolds said.
Nygaard added council worked hard to minimize the tax increase.
“The affects of any mill rate increase to our residents is something we take extremely seriously and cautiously,” Nygaard said.
“It is imperative that we continue to look for savings and efficiencies both now and into the future.”
He said the operating budget was carefully crafted.
“Council is pleased administration was able to work on all aspects of the county’s budget since the interim budget was approved in December and reduce the increased mill rate to 4.5 per cent from 6.19 per cent.”
He noted that council did as much as it could do to soften the mill rate increase.
“Big Lakes is not immune from the current inflationary pressures that everyone has been facing over the last couple of years,” Nygaard said.
“Between those pressures, as well as continued downloading of service costs from the provincial and federal governments, and increase to the county’s mill rate was ultimately necessary.”
Grouard Councillor Jeff Chalifoux and North Gilwood – Triangle Councillor Jim Zabolotniuk urged council to increase reserves and contingencies.
“We need to prepare for the future,” Zabolotniuk said.
Reynolds agreed.
“We need to continue to put more money away for the future and we’ll put more money into contingencies.”
He reported that property assessments in the county have increased and ratepayers would see a tax increase without an increase in mill rates.
High Prairie East – Banana Belt Councillor Tyler Airth supports a tax rate increase.
“Mill rates will have to change,” Airth said.
“Taxes are going up even if we don’t change the mill rates.
“We need to raise the rates, but not too drastically.”
Tax notices are scheduled to be sent to ratepayers in May, Reynolds said.
Property taxes are due by June 30 unless ratepayers have a monthly payment plan with the County.