After a two week wait, Drumheller Town Council has passed the 2012 mill rate. The residential rate was set at 6.9857 and for non-residential, 11.100.
The bylaw had been presented at the April 23 meeting of Town Council. The third reading was delayed to allow residents to voice their opinions to the Town regarding the mill rate.
Two options were presented to Council. The first was to set the rate based on a 4.6 per cent increase to both residential and non-residential tax dollars, accounting for 3 per cent inflation and a 1.6 per cent growth allowance. Council passed the first two readings of this option on April 23.
The second option was to have a 5.26 per cent increase to residential taxes collected and 3.46 per cent to non residential.
The mill rate is used to determine taxes owed by property owners.
“The mill rate is a number, or factor, that we multiply by the [property] assessment to determine the taxes that are due,” said Director of Coporate Services, Jack Kuzminski.
An assessment consultant assesses the value of each property in Drumheller. The mill rate is then set in order to recover the desired taxes.
For residents, an average residential property of $183,573 in 2011 was levied $1,269.01 in municipal taxes. With the change to assessments and the mill rate, the average assessment of $189,949 would be levied $1,326.93, an increase of $57.92.
The average non-residential property of $308,217 in 2011 was levied $3,338.36 in municipal taxes. In 2012, the average of $317,393 would be levied $3,523.07, an increase $184.71.
The tax increase will be following the footsteps of previous years, keeping to a 3 per cent increase per year. The construction of the Badlands Community Facility did not play a factor in the 2012 tax rates.
“We tried to keep it as low as possible. There was a lot of concern about the [Badlands Community Facility], but we’ve maintained it. The last budget cycle was 3 per cent per year and we’re continuing with that, with the additional 1.6 per cent for growth,” said Mayor Terry Yemen. “The facility is a non-factor this year.”
A third reading of Bylaw 09.12 was passed unanimously by Council Monday night. Residents will see an increase to property taxes this year. Assessments can be viewed at www.dinosaurvalley.com/property-taxes.