Mayor Given goes in-depth on high residential property taxes

“Well, we have some choice in there. We would have to be cautious to ensure that it doesn’t add a significant, extra burden to commercial industry and businesses, because that obviously, over time, would get to be a disadvantage for us,” said Given. “But that’s the type of thing that the city does have control over and is probably something worth considering.”

Looking at the current structure though, many people raise the issue of why, on average, residential properties pay more in Grande Prairie than other comparable cities across Alberta?

There are many reasons for that, including the fact that cities such as Lethbridge and Red Deer can draw from a much larger pool of properties than here. Both of those cities have over 40,000 residential properties to draw from, while Grande Prairie has just over 26,000.

“That’s why the City of Grande Prairie is focussed on annexation. To give us a larger land base, where we can encourage new development,” explained Given. “All in an effort to spread that tax burden across a large number of properties, to lower the individual burden for an individual property.”

The cities that sit lowest in Alberta (such as Calgary, Canmore, Camrose and Airdrie), all put a much larger burden on non-residential properties.

Given was also adamant in saying that residents should focus more on how the city is spending the money, and not the individual amount. Showing data from 2017, the city spent just under $2,500 per property, which was right on level with places like Medicine Hat, Red Deer and Lethbridge.

When asked about other possible revenue sources, Given did point out that rural municipalities have a slight advantage in terms of being able to have linear taxes on things like pipelines and railways and argued that not many residents would want to see that type of industry that is developed in rural areas move into the urban core. He also said for the city to invest in major capital projects that could lead to additional revenue sources, like owning its own power lines or gas services, would be far too costly in the short-term to make it sustainable

An area of concern that Given brought forward was the funding that is given to the city by the provincial government through the Municipal Sustainability Initiative. The deal, which began in 2007, is set to expire in 2022. He explained that nearly $10-million a year in city funding comes from that grant, and without a new deal, that could put the city in a tough spot.

“To give people a sense of scale, that $10-million is just about equivalent to our total road rehab and overlay program each year. So, if that money went away, we would face some very, very difficult decisions.”

He further added that the next party who takes power in the province after Tuesday needs to address this issue.

“If the provincial government is looking to save money on the backs of municipal grants, it will drive those difficult decisions down to local governments, and it will mean that residents will pay more property taxes or deal with bumpier roads.”

The city has already sent out Property Assessment Notices for the year, while tax notices will be sent out in late May. Check out the city’s website for more details on property assessments and taxes.

by Shaun Penner

Mayor Given goes in-depth on high residential property taxes

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