Even $90,000 in operating budget cuts did not stop Irricana council from considering a 37 per cent increase in property tax for businesses, June 4.
The recommendation by administration was met with a wall of opposition as about 75 residents crammed into council chambers in a show of solidarity. Sixteen business and building owners protested the increase. After a second meeting on June 7, council finalized a bylaw that shaved the increase to approximately eight per cent.
Initially, CAO Alvin Melton advised council that if it lowered the business tax without increasing residential taxes, it risked running a deficit budget, something not allowed in Alberta.
After discussion, Councillor Larry Martin moved to decrease the proposed business tax from 10.945 to 8.66 mills, still a significant increase over last year’s 7.9.
He also proposed to raise the residential and farm land portions from 7.66 to 7.77, and increase the works and transmission lines from 10.94 to 11.94.
Councillor Frank Dusome and Deputy Mayor Andrew Carr were opposed to Martin’s motion, citing concerns that even the amended tax increase would pose a hardship for the businesses.
Tax notices can now be processed.
Tax Penalty Bylaw
Due to the late nature of this year’s notices, the tax penalty bylaw will be amended to give taxpayers 30 days from the time the notices are sent out until penalties are applied.
Council was not unanimously in agreement of how much the penalties should be, therefore, only first and second readings were passed June 7.
Transfer from Reserves
Council accepted a recommendation to transfer $6,516.51 from reserves to operation to cover the cost of water that was hauled into town during a recent Aqua 7 water shut down in late May.
$500,000 loan
By a 3-2 margin, council approved Melton’s request for a $500,000 line of credit.
“At this time of our municipality’s fiscal year... funds usually run short. Administration is therefore requesting authorization to set up a line of credit at the ATB in the amount of $500,000, equivalent to several months of operations,” Melton’s request stated.
Although the request was granted, consent was not unanimous.
“I don’t think I could be talked into doing a half-million-dollar line of credit,” Dusome said.
“I would have a real problem with this one, but I am looking foward to the debate.”
“A line of credit is the way to go as far as I am concerned. In the past, we have used our Master Card for issues like this at a huge interest cost,” said Martin.
Mayor Constantini agreed, noting that most municipalities have similar lines of credit.
Councillor Josh Taylor also moved to accept the recommendation. The motion passed with Dusome and Carr opposed.
