A significant increase to taxes in Crossfield is coming, said Chief Administrative Officer Ken Bosman, after council unanimously gave three readings to the 2016 Taxation Bylaw at the April 19 regular meeting.
According to Bosman, the portion of taxes regulated and set by the municipality, about two thirds of it, would raise 1.5 per cent in accordance with Statistic Canada’s rate of inflation for 2015.
However, the portion set by the province – including the school board tax – is going up by about nine per cent, he said.
“When you open your envelope and the number is bigger, please call somebody not at the Town of Crossfield,” Bosman said.
Milestone surplus
The Town reached a milestone surplus, according to Bosman, following the passing of its 2016 budget April 19.
This year, Bosman said the Town is going to run a cash surplus of $922,000 and will also pay off $392,000 worth of debt for a total cash position surplus of $1.3143 million.
With that cash surplus on a true cost accounting (TCA) basis, which includes the depreciation of the Town’s existing assets assessed at $1.3137 million, Bosman said Crossfield was able to run a “whopping” surplus of $601.
“It’s a tiny, tiny, tiny little surplus,” he said. “In terms of the sustainability of the municipality it’s an important milestone.”
Bosman said he researched and compared the 10 municipalities smaller and larger than Crossfield and, based on 2014 TCA reports, not a single one made it into the black.
“If the provincial and federal grants ever dried up, (these municipalities) would be in a difficult situation,” Bosman said. “They would literally see their towns crumble and decay because they wouldn’t even have the money to fix what was getting older.”
Capital spending will increase significantly to $5.6 million in the 2015/16 capital year, but Bosman said this spending comes from a “fiscally responsible standpoint.”
Despite spending that much, he said the Town is actually strengthening its financial reserves by $620,000 and retiring $773,000 worth of debt for a financial swing of $1.4 million over the two-year period.
“We’re spending more, but we’re doing it internally,” he said.
Mayor Nathan Anderson said in a time of economic hardship, Crossfield is doing better than he had ever hoped.
“It’s humbling to be a part of something that is becoming a true success story,” he said.
Wetland preservation
Following public concern on social media that developers may be linked to the low wetland water levels, Bosman reiterated the process in place to ensure the preservation of the wetlands.
Over a three-year evaluation period before a final acceptance certificate is issued, Bosman said the developer’s plans would be reviewed about 20 times from the Town’s engineers, Alberta Environment’s engineers and Alberta Transportation’s engineers to ensure the development is not compromising the wetlands.
“For people who are concerned, the process is a robust one and we are absolutely following the process,” Bosman said.
