LSARA IS WAITING PATIENTLY FOR THE LSAC DRAFT 2017 BUDGET
County Advances Zero per cent Tax Increase
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Lac Ste. Anne County is planning to proceed with a zero per cent municipal tax rate increase in its 2017 budget.
County council voted unanimously during its Feb. 23 regular meeting to approve publicly advertising its 2017 draft budget, which features a zero per cent municipal tax rate increase. There was no motion to finalize the draft version of the budget, which will come after the residents have a chance to respond to the draft.
Coun. Lorne Olsvik said with service fees and other fees increasing, keeping municipal tax increases at zero per cent is necessary.
“We have quite a few service fees all the way throughout trying to beat it out, keep municipal fees at zero,” Olsvik said. “On the municipal side, it’s got to be zero.”
However, there could be a long-term cost to a zero tax increase this year. Mike Primeau, the county manager, cautioned that a zero tax increase this year could make a larger tax increase in 2018 necessary.
“The fear is, if you do a zero (increase) this year, next year when we get another million less in linear (taxation), about a million less in grants, then you’re at a 10 per cent increase just to sustain yourself,” Primeau said. “If you do a small increase this year, then next year is a smaller increase than it would have been — if that happens.”
Though council directed administration to make a budget with a zero per cent increase, administration also had an alternative proposal for a 2.5 per cent municipal tax rate increase.
Coun. Wayne Borle said the county should go with a zero municipal tax rate increase given the amount of other initiatives the county has to do in the year.
“I am not in favour of a tax increase for 2017 for the simple reason that we got a lot of irons in the fire, we got a lot of things to deal with,” Borle said.
Coun. Lloyd Giebelhaus said he expects education tax increases to hurt, which is why he supports a zero tax rate increase on the municipal side.
“I like zero municipal (increase) because I know education’s going to kick us,” Giebelhaus said.
Primeau also said the county had to make it clear that municipal taxes could still change overall, as there are other items that can increase that are out of county control — including property assessment.
“It’s not going to be identical to (20)16. As long as you can get that out there to the public, because there’s a lot of moving parts within a tax bill,” he said.
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