By Stu Salkeld, Local Journalism Initiative Reporter, Rural Alberta Report
The Village of Forestburg council approved an overall 2.5 per cent municipal tax hike after a lengthy debate. The discussion was held at its May 21 regular council meeting.
Chief Administrative Officer (CAO) Dwight Dibben presented councillors with a few options, but also noted the village was under increasing budget pressure.
“Enclosed are three draft tax rate bylaw versions for council’s consideration proposing three different tax rate scenarios of an increase to municipal tax rates of 2 per cent, 2.5 per cent and 3 per cent for the 2026 taxation year,” stated the CAO’s report.
“Prior to this year, council has been able to hold tax rates at 2021 levels. This approach was largely possible due to repeated property assessment increases in these years, as well as administrative savings being sought and found while maintaining service levels in various areas.
“Unfortunately, continued provincial cost deferrals, particularly in policing costs, flat or decreasing provincial capital grants and continually increasing service and capital costs have made it impossible to maintain a flat municipal tax rate environment without scaling back service levels and/or capital maintenance and replacement activities.”
Dibben noted staff recommended the 2.5 per cent option and that figure was the one quoted in three-year operating plans.
Dibben stated the village is facing higher costs and could no longer rely on assessment value increases to cover those costs.
As councillors discussed the tax rate bylaw, it was noted some properties in Forestburg would face larger increases than others, mostly due to market value assessments. The CAO stated, for example, a residential property in Forestburg valued at $200,000 would see an increase of $45 to $65 on the municipal portion of its tax bill if a 2.5 per cent hike was approved.
Coun. Blaise Young observed that large education and policing tax hikes were coming from the Government of Alberta, not the village, and that should be pointed out to property owners.
Coun. Elaine Fossen stated she was concerned about the minimum tax rate; that is, the minimum tax bill a property is charged by the village even if its market value calls for a lower amount.
Many municipalities use a minimum tax rate with the reasoning that all properties in a municipality benefit from services, but certain low-assessment properties don’t pay enough tax to cover the cost of those services. Hence, the minimum charge.
Fossen made the point that every property in the village gets the same services and all properties should contribute equally. It was noted Forestburg’s minimum tax charge was $1,000 and the CAO noted that applied to 74 properties.
A motion was made to increase the minimum tax charge to $1,200 while also approving the tax rate bylaw with a 2.5 per cent overall municipal tax increase.
However, Coun. Devon McNabb voiced concern over the 2.5 per cent rate; he proposed a 2 per cent hike to ease the burden on taxpayers. The CAO observed that Forestburg council hadn’t approved a municipal tax increase in five years.
Coun. McNabb moved that the tax rate bylaw motion be amended to include a 2 per cent overall tax increase, but the motion was defeated by a 1-4 vote, with McNabb the only supporter.
Councillors passed all readings necessary to bring the tax rate bylaw into force with a 2.5 per cent tax increase and an increase to the minimum tax rate of $1,200, although Coun. McNabb voted against each reading.
