This morning I received two questions from a resident of Crossfield. His queries are likely not exclusive to him and so I would like to share the answers with all.
The Question:
The Answers:
Regarding the street sweeping. It is far less expensive to hire a private sector contractor than to try and own a street sweeper. Our old sweeper has literally bit the dust and a new one is $200,000 – $250,000. You can buy a used one, however they are not cheap either. It costs tax payers $15,000/year to hire private and this includes all fuel, maintenance etc. When you look at the numbers it becomes clear why we hire a contractor. We do not sweep enough streets to justify owning a $200,000+ piece of equipment. These units need to sweep 10 times the number of streets that Crossfield has to be justified.
Following is my answer to your tax question. Last year the average tax bill increased by 1.5%, which was the rate of inflation. As you know we can only control the mill rate, we have no control over individual assessments. This means that some folks will see less increases/decreases than others; however the average is an inflation increase of 1.5%. If we don`t account for inflation then we will find that over a few years the Town will no longer be able to maintain infrastructure and basic services because our relative purchasing power will be diminished.
The news is not as good this year. The Provincial Government has decided to hit municipalities with approximately a 10.68% increase on the school requisition portion of our property taxes. As you know, we have no say on this increase. It`s like GST, we have to collect it and then pass it all on to the Province, none of these funds stay in the Town. This portion makes up about 40% of your tax bill. In other words 40% of your tax bill is out of our control. This year you will see the Towns 60% portion of your tax bill change on average (will vary because of assessments) by inflation only, which is 2.9%. You will see the Province`s portion, which is 40% of your tax bill, increase by an average of 10.68%.
To summarize, if you feel that a change in taxes by only the rate of inflation is justified, then we are on the same page. If you think that taxes should be frozen and not adjusted for inflation, then I have to disagree with you on that point because this approach would make our community unsustainable. The third key point is that a little more than 40% of your tax bill is out of your Towns control and is being increased by more than 3 times the rate of inflation. I would ask that you and other concerned citizens call our MLA, the office of Municipal affairs and the Premiers office to voice your concerns. We were told that there was going to be no new taxes but that`s not the reality. The Provincial portion of property taxes are seeing a significant increase this year.
PS. It`s important that you call the Town`s assessor if you feel your tax assessment is too high before June 1, 2012.
Thanks for the questions, Nathan.
Contacts:
MLA Constituency Office
#3, 4530 – 49 Avenue
Olds, AB
Canada T4H 1A4
Phone: (403) 556-3132
Fax: (403) 556-3120
oldsdidsbury.threehills@assembly.ab.ca
Minister Doug Griffiths, Alberta Municipal Affairs
Communications Branch
18th floor, Commerce Place
10155-102 Street
Edmonton, AB
T5J 4L4
Canada
Phone: 780-427-2732
Dial 310-0000 for toll-free connection
Fax: 780-422-1419
The department’s hours of operation are: 8:15 a.m. to 4:30 p.m., Monday through Friday.
Premier Alison Redford`s office
Calling long-distance in Alberta: dial 310-0000, or 780 427-2251
307 Legislature Bldg
10800 – 97 Avenue
Edmonton, AB
Canada
T5K 2B7






