City council is poised to approve a handful of adjustments to the city's 2024 budget on Tuesday, which will reduce this year's property tax increase to 5.3 per cent, rather than the 5.5 per cent increase that was approved when council passed the budget in December.
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The budget adjustments include increasing the forecasted revenue the city expects to generate from public transit and the Servus Place Recreation Centre this year, slightly reducing the amount of property taxes the city needs to collect to provide both, and all, amenities.
A new report to council written by city financial manager Suzanne Findlay explains that St. Albert Transit finished 2023 with a revenue surplus as a result of strong ridership numbers, a trend that has continued through the first few months of 2024. As such, administration is proposing that the city increase their transit revenue expectation by $170,000.
For Servus Place, administration is proposing a revenue forecast increase of $50,000, also as a result of positive facility usage trends so far this year.
Another adjustment administration is asking council to approve on Tuesday is the use of $117,000 in assessment growth to reduce the amount of property tax funding the city needs to collect this year.
Assessment growth is additional tax revenue collected by the city from newly built or developed properties.
In all, the city has $468,000 in assessment growth projected for 2024. A council-set policy dictates that 25 per cent of each year's assessment growth is used to reduce the tax base, 55 per cent is transferred to the city's stabilization reserve, and 20 per cent is put towards lifecycle costs.
As such, if council approves the recommendation on Tuesday, $117,000 (25 per cent) of the assessment growth will be used to reduce property taxes, $257,400 (55 per cent) will be transferred to the stabilization reserve, and $93,600 (20 per cent) will be used for lifecycle costs.
Once approved, the $45.20 tax increase for every $100,000 of property value previously expected under a 5.5 per cent tax increase will be reduced to an increase of $42 for every $100,000 of property value under a 5.3 per cent property tax increase.
The adjustments are currently set to pass on consent, meaning there likely won't be any council debate.
