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Annual auditor review at Lac La Biche County

Although property assessments may have changed for residential and commercial taxpayers in Lac La Biche County over the last year, it's expected that the municipal portion of the tax won't change from last year.

Although property assessments may have changed for residential and commercial taxpayers in Lac La Biche County over the last year, it's expected that the municipal portion of the tax won't change from last year.

And that will likely mean a financial hit of about three quarters of a million dollars for the municipality.

Financials approved

As Lac La Biche County councillors approved their audited financial statements from 2018, accounts that showed operating revenues of almost $78 million, they agreed to hold the line on any municipal tax rate hikes for 2019, despite learning it could reduce the overall revenues by $750,000.

At their April 23 council meeting, Auditor Jeff Alliston from Metrix Group LLP told Lac La Biche County councillors  that about 84 per cent of their annual revenues come from the municipal tax base. He also reported to council that their financial statements showed a relatively healthy financial picture with no sign of significant or unusual issues during the independent audit that his company does.

"We watch our numbers very closely," said Lac La Biche County Mayor Omer Moghrabi.

Overall, the financial statements showed the municipality sitting with a surplus of approximately $25 million.

Some of the highlights of those numbers included a tally of $405 million in tangible capital assets within the municipality including infrastructure items like the Bold Center, water and sewer lines and roadways. that number is up by about $25 million from the previous year. Staffing expenses were also up from 2017 noted Alliston, showing that salaries for 2018 were $21.6 million compared to $19.8 million in 2017.

Tax rate remains the same

Despite some increases, council felt an increase in municipal taxes for 2019 was not the answer.

"I don't see an appetite on council for raising taxes in this economic slump," said Moghrabi. "Keeping status quo is what I see."

Other councillors agreed.

"With a surplus from last year, I'm OK with the status quo," said councillor Colin Cote, adding that he feels the tax rate could be increased — but not now. "Our mill (municipal tax rate) is lower than a lot of other municipalities. I feel there is room to increase it — but not now, it's too soon."

Councillor Sterling Johnston said this year's hold-the-line stance comes after a slight increase to the tax rate last year, so he is comortable, and feels that some "tightening of the belt" can be done by municipal administration.

Councillor Charlyn Moore agreed, saying that councilllors themselves can help to find cost-savings.

"The status quo is good. We can find some efficiencies through administration and in council for spending reductions," she said.

Because Lac La Biche County is a categorized as a Specialized Municipality, it has different municipal tax rates for residential and commercial ratepayers within urban area and rural areas. Last year's tax notices raised residential rates from 2.529 to 3.0. For non-residential taxpayers within urban areas surrounding Lac La Biche and Plamondon, the municipal rate dropped from 10.1688 to 10.0. Non-residential taxpayers in the rural areas, including larger industrial companies, was also reduced from 18.5585 to 18.3647.

The mill rate is part of the formula that sets the actual dollars paid for property. The municipal mill rate is one part of the formula, with school and seniors rates also added, along with emergency services.  Last year, with the municipal rate at 3.0, the municipal portion of taxes required on a home worth $400,000 was $1,200. Tax rates are also dependent on the appraised values of properties within the municipality.

There is some expectation that property assessments will see about a five percent redcuction this year due to general economic drivers.

The municipal tax bylaw is expected to be approved by the first week of May.  Tax notices will then be sent to all municipal taxpayers. Taxes can be paid without penalty by July 2 this year. Appeals of assessments can be made within 67 days of the notices being mailed out.


Rob McKinley

About the Author: Rob McKinley

Rob has been in the media, marketing and promotion business for 30 years, working in the public sector, as well as media outlets in major metropolitan markets, smaller rural communities and Indigenous-focused settings.
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