Lacombe ties tax increases to inflation with new policy
Lacombe city council has added what it describes as ‘consistent principles’ to its budget development process by updating its Annual Budget and Taxation Preparation Policy this week.
“The updated policy includes council’s commitment to align future tax rate increases with the Alberta Consumer Price Index, which allows The City to keep pace with the rising cost of service delivery to residents, without placing undue burden on taxpayers,” said Mayor Grant Creasey, in a press release. “The updates were driven by the current Strategic Plan and the recent changes to the Municipal Government Act, which require municipalities to develop three-year operating budgets.”
The Consumer Price Index (CPI) measures the year-over-year price increase that Albertans pay for a range of products and services. The City will use the June 30 Alberta Consumer Price index as the targeted annual property tax increase.
City officials point out the CPI date is consistent with the date used in The City’s Compensation Policy, which indicates the estimated cost of living allowance for employees. Aligning these dates, according to officials, gives Administration the necessary direction for budget preparation.