A councillor is pursuing amendments to city council’s budget and taxation guiding principles policy that would potentially enshrine the philosophy of using new assessment growth revenue to fund new or expanding city initiatives.
Coun. Cathy Heron’s motion to have administration make recommendations on how to amend the policy on how to treat any new assessment growth at the February standing committee on finance meeting was passed unanimously by council.
“So, this obviously was sparked due to the recent budget discussions,” Heron said. She said a recommendation from staff that surplus assessment growth revenue that’s not being used to fund new business cases should be put into reserves caused her to query the practice.
“The first question that popped into my head was, ‘Well, which reserve?’” Heron said. She said she thinks it is a good idea that new assessment growth pay for new projects, but agrees with Mayor Nolan Crouse’s philosophy about putting things into long-term policies.
“I see this as an addition to the policy,” Heron said.
New assessment growth refers to new property tax revenues brought in from recently added properties. New assessment growth in 2014 for St. Albert is projected to be worth $2.1 million.
Instead of using that new money to offset taxes, administration is suggesting that revenue be largely dedicated to funding new business cases to support growing demands on city services from the new population.
The administrative report provided to council as part of the paperwork on the motion noted previously, the city has been using assessment growth revenue to offset inflation costs.
“If this approach continues, it can result in steep tax increases when the costs associated with growth materialize,” said the administrative backgrounder. It goes on to say administration is recommending that assessment growth revenue be used to support growth projects.
Council voted unanimously in favour of having administration bring back recommendations in February, with Coun. Wes Brodhead absent.
