HINTON – Town council is leaning toward using a million-dollar surplus to keep municipal tax rates the same and fund reserves.
On Tuesday (May 6), council approved the spring budget adjustments and voted 4-2 to give first and second reading to the 2025 tax rate bylaw, with Couns. Stuart Taylor and Ryan Maguhn voting against.
Council also voted on giving unanimous consent to move to third reading, but Taylor opposed, meaning third and final reading will have to be given next week at a special council meeting on May 13.
Coun. Trevor Haas defended the decision not to lower the tax rate even more by noting the remaining $800,000 would be earmarked for three major initiatives—a third to the recreation centre reserve, a third to a tax rate stabilization reserve and the final third to asset management.
“I realize that, yes, it is more money this year, but let’s look at the past and the history, and we have not a good job of taxing our community so that we can fulfill some of these projects,” Haas said. “We have to start putting dollars away, so I think this is the best way to do it.”
The budget originally adopted by council last December requires the Town to raise $14.6 million through taxation and called for a 4.32 per cent tax increase, but due to spring budget adjustments, such as an extra $600,000 from linear taxation, this amount has been reduced to $13.6 million.
On April 22, council discussed what to do with this surplus and leaned toward a zero per cent tax increase. This would mean a residential mill rate of 5.614 and a non-residential mill rate of 9.5461.
Due to an increase in assessed property values, property owners will still pay more this year. On average, properties in Hinton saw an increase of 3.59 per cent in their assessed value.
“In short, the value of your house goes up, and therefore what you pay is a little bit more because the value has gone up,” Maguhn said.
Maguhn added that the Town also collects requisitions on behalf of other organizations such as the Province via the education property tax and the Evergreens Foundation.
Taylor voted against the tax bylaw since residents would ultimately still pay more than last year due to the new assessed values, which he felt was unjustified when there was a million-dollar surplus.
“The citizens have already been hit on their utility bill increases over two years of roughly 20 per cent,” Taylor said.
Maguhn also wasn’t in support because it wasn’t part of the original budgetary process, although he acknowledged the need to invest in a recreation centre, infrastructure needs and a tax rate stabilization reserve.
“Those are all good and those are all reasonable, but I don’t feel it’s transparent at the 11th hour to drop those on the community in the span of several weeks and say, ‘Well, we’re going to do this,’” he said. “I don’t feel right about the process.”
Haas argued that the process was transparent as they had a wholesome discussion at the previous committee of the whole meeting, and even if residents voted against a new recreation centre in the upcoming plebiscite, the Town would still need money to maintain the existing facility.
Coun. Albert Ostashek said he was “disappointed” that they couldn’t give third reading at this week’s meeting, meaning citizens would have less time to make personal budget adjustments so they can meet taxation obligations.
“I understand there’s some councillors who aren’t in favour of passing it today,” Ostashek said. “But what this ultimately just does though is delay the decision.”
