No Plans to Increase Tax Rate in Elk Point

Slight increase in utilities expected

Council and Mayor for the Town of Elk Point approved the Town’s interim 2017 budget at Tuesday’s Council Meeting and can report that the Town does not anticipate an increase in the mill rate – or tax rate as it’s commonly known. The Town does report that there will be an increase in utilities, water & sewer, in 2017. Councillor Lorne Young, for the Town of Elk Point explains the increase is needed to balance the budget.

“Because of the increase in the cost of water from St Paul,” Young explains the Town’s water commission has a deal with to charge the same amount as residents in St Paul pay. “St Paul raised their rate from $1.05 per cubic metre to a $1.50 per cubic metre.”

Elk Point residents receive St Paul water, Young says once St Paul’s rates increased it trickled down, “it goes to the regional water commission and the water commission in turn sells it to Elk Point. The water commission also had to raise their rates due to the cost of pumping the water, maintenance [and other incidentals].”

“At the end of the day, we have had to raise our rates, as well,” Young anticipates the Town will have more information for residents in their monthly utilities bill. The anticipated increase is from $55/month to $60/month; which includes up to 14 cubic metres of water.

As for the mill rate, Young says the Town does not anticipate an increase, “based on what we’re seeing right now, we’re seeing no need for a mill rate increase.” There’s one major unknown that can change the game, explains Young, “if our assessments come in significantly different than what it is right now, that can cause a change.” Municipal residental and business taxes are determined by multiplying the mill rate (set by the Town) by the assessed value of property (set by third party assessors). The assessments are always a year behind.

Another factor that could increase overall taxes is the Education tax, which is set by the Province of Alberta and collected by the Town. The Town has no control over the Education tax, nor is it known whether or not the Province will increase or decrease the rate.