A few adjustments in revenue has seen the town lower its 2019 property tax hike by more than half.
A week ago, Bashaw taxpayers were facing a significant jump in their taxes.
However, at council’s May 2 meeting, administration noted around $22,000 in unanticipated revenue will be realized this year allowing the hike to be lower than first thought, falling from the 6.58 per cent approved on April 24 to an estimated 3.8 per cent.
In addition though, Coun. Darren Pearson wondered if some unrestricted reserves could be used to drop it even further. His first thought was to use up to $30,000, but altered it to a top-up to that amount after hearing about the unexpected revenue.
Ultimately, council approved using $8,000 in reserves to come up with a property tax increase of just 2.77 per cent for this year.
“Reserves are there for a reason and I think (bringing down the tax increase) is a pretty good reason. Six and a half per cent is a really big hit,” Pearson said, adding reserves are the town’s rainy day fund.
“And then hopefully, we will have this water thing figured out for next year.”
Coun. Lynn Schultz agreed that the tax hike was too high, but wasn’t overly enthused with using that much in reserves.
“I’ve got to agree. I’ve thought about it. I hate taking money out of reserves, but …” said Schultz.
That was when Coun. Rosella Peterman and Mayor Penny Shantz reported that a refund of about $17,000 would be coming from the Highway 12/21 Regional Water Commission, due to Bashaw having over-contributed to the commission’s reserve.
“Logically, we are short because of our water and this is a refund. So to me, it makes sense to use it and it’s an extra that we weren’t expecting,” Peterman added.
“And a lower rate is definitely going to be much easier to swallow for taxpayers.”
The other unanticipated revenue came in the form of $5,000 more in recreation funding, for a total of $30,000 for 2019, coming from Camrose County and an adjustment of a few hundred dollars in the administration category.
“With the reserves, the tax increase is a lot more reasonable,” stated Coun. Rob McDonald, adding it is close to the rate of inflation.
Once the new tax figure was decided, council had to rescind the budget motion passed April 24 then approve a new budget with the updated figures. That was followed by passage all three readings of the property tax rate bylaw.