By rdnewsNOW staff

budget passed

0% tax increase in Ponoka

May 16, 2020 | 10:00 AM

Ponoka town council has approved a zero per cent municipal property tax increase as part of the Town’s 2020 Capital and Operating Budgets.

The total amount of the 2020 Budget is $25,210,660, which includes an Operating Budget of $18,366,060 and a Capital Budget of $6,844,600.

The Interim 2020 Budget approved last December included a 2.7 per cent property tax increase. However, due to the economic impact of COVID-19 combined with a collapse of oil prices, Council asked Town Administration last month to find efficiencies and come back with a zero tax increase in the municipal portion of property taxes this year. Consequently, the 2020 Budget includes no change to the mill rate from 2019.

“We know that a number of our citizens and businesses are hurting due to this COVID-19 pandemic. The zero per cent property tax increase will provide citizens with some much needed tax relief,” says Ponoka Mayor Rick Bonnett. “It’s a major component of the property tax and utility payment relief initiatives that Council asked Administration to provide to our citizens this year to help them through these difficult times.”

New commercial and residential growth of $11.5 million in Ponoka helped to achieve the zero per cent municipal property tax increase. That new growth was offset by a $7.5-million decrease in the market (deflation), resulting in an overall increase of $3.7 million in taxable assessment for the Town of Ponoka.

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Changes to the Interim Budget that were approved by Council in the final Budget this week include:

– A net decrease in salaries of $416,210 due partly to the temporary closure of Town recreation facilities and not filling staff vacancies for non-essential positions during the COVID-19 pandemic;

– Further efficiencies and cost reductions of $155,820 that were identified due to COVID-19. These were transferred into an Operating Contingency reserve;

– An estimated $113,750 loss of recreation revenue due to COVID-19;

– $27,000 in new funding for an Economic Recovery Strategy to help the local economy rebound and recover from the COVID-19 pandemic;

– A new Recreation Facilities reserve funded by annual matching contributions from the Town and Ponoka County in accordance with the funding formula outlined in the Shared Recreation Services Funding Agreement signed earlier this year; and

– A $14,000 increase in grant funding through the provincial Municipal Sustainability Initiative (MSI).