The printers at city hall will start zipping off tax notices now that city council has passed the tax rate for 2012 as of Monday night.
The vote on the property tax bylaw incorporates the proposed 2.8 per cent increase passed during the 2012 budget with the other levies present on resident and business tax notices for a total average tax increase of 3.8 per cent.
Included in the tax bill is the municipal tax – set at 7.2862 mills for residential and 11.5360 mills for non-residential – along with the Servus Place capital levy, the education property tax and the Sturgeon Foundation levy. Included in the municipal tax line item, but not listed separately, is the Servus Place operating levy and the LRT levy.
"The last couple of years we have worked very hard to make sure the residential tax increase has been matching inflation," said Mayor Nolan Crouse. "We have not been as bold and aggressive with tax increases with other municipalities in the region."
In terms of citywide assessment, the city saw $170 million in new growth in the period between June 2010 and July 2011, $135 million of which was residential in nature. The non-residential sector experienced a higher percentage of growth, which moved the residential/non-residential assessment ratio closer to an 88/11 split as the city pursues a ratio of 80/20.
"Our tax split did move about a quarter of a percentage point, which is a favourable thing for the community," said Greg Dahlen, director of assessment and taxation.
Downward trend
Residential assessment as a whole decreased in value in the period assessed by the city, which was July 2010 to July 2011. The average drop in assessment was approximately 1.8 per cent. The only neighbourhood that saw an increase in assessment was Kingswood at 0.3 per cent. The community that saw the biggest drop was Sturgeon Heights at 3.2 per cent.
The 1.8 per cent average decrease is a marked change from the city-wide average increase in assessment of 5.1 per cent last year.
"There's been a slight softening in pricing or in values," Dahlen said. "And the reason for that is the resale activity that's taken place in St. Albert."
As a result, Kingswood homeowners will pay more than the average in tax increases. Properties assessed at less than the city average of 1.8 per cent will pay slightly less.
"Statistically there is a small variation," Dahlen said.
On the non-residential side, commercial properties rose 8.1 per cent in inflationary value, compared to 4.7 per cent for industrial properties.
Education levy
The largest increase on tax bills this summer will be for education, which has shot up 9.5 per cent, something city hall has repeatedly tried to explain it has no control over. The city collects the education levy then hands it over to the province. This year, the levy for St. Albert is $27.5 million, up from $25.1 million in 2011.
"This education tax is skyrocketing," Crouse said.
Ratepayers will be able to pay their bills once they are received in June through the mail, night deposit at St. Albert Place, at the St. Albert Place cashier, at any financial institution or through the city's pre-authorized payment plan.
