By rdnewsNOW Staff

Helping Residents And Businesses

Council to consider Tax Rate Bylaw, economic initiatives and incentives Monday

Apr 10, 2021 | 9:59 AM

Red Deer city council is set to consider a number of property tax payment assistance and other economic development initiatives and incentives at its regular meeting on Monday.

Council will consider resolutions that acknowledge the current realities faced by local businesses, property owners and the community as a whole amidst the continued COVID-19 pandemic.

It is recommended city council give all three readings to a Tax Rate Bylaw, enabling tax notices to be mailed out by May 10, 11 days earlier than normal. This would enable additional time for taxpayers to make payment arrangements or sign up for the Tax Instalment Plan (TIP) program.

“We are committed to working closely with our taxpayers on payment options and on a suite of initiatives and programs that will lead us forward in our response and recovery,” said City Manager Allan Seabrooke, in a press release. “We know our community, citizens and businesses alike, are all impacted by the economic uncertainty stemming from this pandemic.

“It is our job as a municipality to be innovative and responsive in balancing the needs of all Red Deerians, and the proposed Tax Rate Bylaw, when married with the proposed economic and business-focused initiatives on Monday’s agenda, will do just that.”

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Other recommendations include a significant reduction in penalties applied to overdue accounts.

“The recommendation is to substantially reduce the penalty amount in 2021, and gradually increase this back over several years to allow for economic recovery,” explains Seabrooke. “This would provide financial relief in 2021, 2022 and 2023 creating certainty for taxpayers.”

The recommendation would also remove the initial payment required to sign up for the TIP program. This would ensure the entire tax balance owing could be spread over the remainder of the year to assist property owners in making payments.

“This change makes the plan accessible to more taxpayers because there is no lump sum payment required when joining part way through the taxation year. More than 56 per cent of our taxpayers make monthly payments,” said Seabrooke.

However, the focus won’t be solely on residential property owners. The City acknowledges that businesses are struggling too.

In addition to tax relief programs, council will consider economic development initiatives and incentives, including:

1. Changes to servicing policies and charges to reduce development costs city-wide.

2. Spur investment in underutilized sites with rebates to motivate the demolition of vacant and derelict properties city-wide.

3. Fostering activity in the downtown with:

• a new residential and mixed use development grant
• a new grant to drive new residential units in existing structures
• temporary two-hour free parking in 215 spots from June-December 2021

4. Use City of Red Deer land holdings to motivate investment.

Meantime, the City is connecting with local organizations and groups, such as the Chamber of Commerce, to better understand the needs of struggling businesses.

“Following several meetings with Mayor Tara Veer and senior members of City administration to advocate for tax relief in support of businesses disproportionately affected by COVID and the weak economy, we’re happy to see this suite of supports from The City,” said Rick More, Chamber CEO. “Reducing the interest on outstanding property tax bills will provide the immediate short-term support needed to alleviate some financial strain businesses face as we work towards the lifting of restrictions.”

“This is a demonstration of support for local business and we encourage those struggling with tax bills to reach out to the City for payment options,” added More. “Our Chamber continues to work with all levels of government to ensure businesses have the supports required to survive COVID and make a strong recovery.”

Seabrooke adds the pandemic has taught The City how to respond quickly and do things differently.

“Many of our services can now be accessed remotely,” he says. “We need to retain some of these learnings and continue the momentum on reducing red tape and modernizing to help our businesses and citizens be successful.”