(ID 87734365 © Garsya | Dreamstime.com)

By rdnewsNOW Staff

THREE PER CENT TAX INCREASE

Penhold town council approves 2025 operating budget

Nov 28, 2024 | 3:58 PM

Penhold’s town council approved a 2025 operating budget of $16,268,787 on November 25, and it’s set to include a three per cent property tax rate increase.

Mayor Mike Yargeau said this increase puts the town in line with the rest of central Alberta.

“Most of that is inflation. We really tried to hold the line this year as much as possible,” he said. “There’s not a lot of flash in the budget by any means, but the hard reality is the cost of everything in 2025 is going to be about three per cent more than it was in 2024, so we have to account for that.”

He added that town council has been working to bring costs down for years and this is their second consecutive year coming in below the provincial average.

Some key points in the budget include:

music to their ears

Red Deer Symphony Orchestra elated over new funding as it nears third show of season

4h ago

Big winner

Red Deer resident wins over $1 million on lotto ticket

4h ago

THREE PER CENT TAX INCREASE

Penhold town council approves 2025 operating budget

4h ago

• Town will continue/finish the recreational development within the Community Hub area in 2025
• Disc Golf course that has been started will be completed in the spring
• The Dog Park Committee has been formed and they anticipate phase one of the dog park to be developed in 2025
• The Public Services Building, a major capital project will house both the Fire Department and Operations departments.
• The new Penhold Junior High School will be opening in Sept. 2025.

—

READ MORE

• Penhold Waskasoo Middle School construction points to town’s growth
• Penhold awards project bid for new public services building

—

The budget also accounts for a continuation of the New Home Buyers Incentive Program, which reduces a newly built home’s property taxes by 50 per cent in the first year and 25 per cent in the second. Council noted that 20 new residents accessed this program in 2024 and that letters were sent from builders in support of the program.

“Every year we get people that have noted the main reason they chose to build in Penhold was the home buyer incentive,” said Yargeau.

Although there was a sale scheduled for Nov. 13, for properties late on their taxes, it was cancelled as all properties paid their outstanding balances prior to the sale.

Finally, the town will be introducing a Tax Sale Recovery Fee in 2025 in an effort to recoup some of the costs of conducting these types of sales. Effective next year, a dual fee structure will be applied to delinquent accounts.

The first fee will occur at the time of placing liens on parcels/units. Here, a fee of $100 will be added to the owner’s tax account. The second fee will occur when the parcel/unit falls within 72 hours of the tax sale date, where a further fee of $125 will be added to the delinquent account.

Mayor Yargeau noted that provincial requisitions and payments have not yet been identified and will be addressed at the time of setting the tax rate, which will likely occur in March or April.

The 2025 Capital Plan is expected to be completed at this point in time as well, he added.