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managing through tough times

Tax rates set for County of Stettler residents

May 15, 2021 | 2:49 PM

County of Stettler council has set the region’s tax rate for the coming year.

There will be a zero per cent increase for residential, non-residential and machinery & equipment, and a two per cent increase on farmland.

The increase for farmland equates to between $5 and $15 per quarter section. The net increase in dollars collected by the county will be $32,529, earmarked to support Agricultural Services.

The County says a dire picture was painted for its 2020 finances when the province reviewed how oil and gas properties would be assessed, and administration predicted a further $2 million in unpaid oil and gas taxes.

“We were one of the first municipalities to forecast, prepare for and anticipate not only the impacts of the pandemic but also a further downturn in the economy in relation to oil and gas,” says Reeve Larry Clarke. “Fortunately, while we predicted a $2 million shortfall due to unpaid oil and gas property taxes, the actual uncollectable turned out to be $1.5 million.”

The County notes that council and admin made an unprecedented move last year, protesting the changes to how oil and gas properties are taxed by taking their argument to the steps of Alberta’s Legislature.

“We are fortunate that our voices were heard, and the province has ‘paused’ further changes with this review for now,” Clarke says. “The results of that review, had they gone ahead, would have been devastating to our municipality.”

Meantime, cancelled or deferred projects from 2020 mean resulted in a $2.38 million surplus for the county. These include chemical spraying, roadside mowing, a hold on hiring summer staff, a reduction in overtime for field staff, and holding salaries.

The County of Stettler also received $750,000 in stimulus funding from Alberta Transportation to replaces six bridges/bridge-sized culverts, which had reached end of life.

Alberta Transportation also completed secondary highway improvements to Highway 855, and Municipal Operating Support Transfer dollars totalled $568,608, used to cover unpaid taxes and upgrade municipal facilities into COVID compliance.

According to the County, the $2.38 million budget surplus from 2020 has been allocated to reserves as the County prepares to absorb a 25 per cent reduction in Municipal Sustainability Initiative (MSI) funding over the next two years. This MSI reduction was announced by the province earlier this year.

“Municipalities continue to face many challenges ahead, and we will continue to prepare and plan for the worst, always hoping for the best, with our key concern being to maintain a responsible budget and to provide for long term viability for our municipality,” added CAO Yvette Cassidy.

“The surplus is a welcome result for our municipality following a year of stress and uncertainty. It demonstrates prudent planning and good decision making by this council and administration. We certainly don’t want to see a giant surplus in a normal year, or every year, because that would mean we’re asking for more money than what we need to operate. But with a global pandemic dramatically affecting our operations and projects, and prudent foreshadowing by administration, I think this was a very reasonable result.”

Tax Notices will be mailed out in June with taxes due Friday, October 29.