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Armstrong residents facing tax hike

General property increase of 3.75 per cent proposed for 2017
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Armstrong residents should prepare for a tax increase.

City staff and council have drawn up a five-year financial plan for 2017-2021 which includes a general property tax hike of 3.75 per cent this year.

“The effect of this increase is approximately $28 on the average assessed residential property,” said Armstrong chief financial officer Terry Martens, who presented the proposed budget to council Monday.

The total operating budget for 2017 will be $6.32 million. The total capital budget is $2.36 million with funding coming from reserves, grants, debt, developers and other sources.

There is also the creation of a new property tax levy to pay specifically for direct policing costs now that the city has exceeded 5,000 in population.

The city, as a rural municipality under 5,000, has paid $240,000 per year for policing. With negotiations ongoing with the provincial RCMP, that number could now exceed $500,000.

“The affect of this new tax on the average assessed residential property, net of the elimination of the provincial police tax, is $70,” said Martens. “That’s the worst case scenario.”

Said Mayor Chris Pieper: “Until we know the final amount, we’ve put the highest amount into the proposal going forward. Hopefully we can cut back on that.”

There will be a 10 per cent increase in water user fees with the effect for each home being approximately $12 per year, or $1 a month, based on average water consumption.

A slight increase in residential garbage collection fees will amount to approximately $2.50 per home.

There will be no service level changes.

The major capital project on the books this year with complete reconstruction of Willowdale Drive and Patterson Avenue (from Becker Street to the Kindale Developmental Association property), both undergoing road, sidewalk, water and sewer upgrades. Patterson Avenue will cost $572,000 and Willowdale Drive’s price tag is anticipated to be $293,000.

“It’s a very large one,” said Pieper. “It’s a fair amount of money, but we’ve saved and planned for this.”

Other works include upgrades at the sewer treatment plant if the city receives grant funding; a mandatory fire truck replacement, as well as replacing public works fleet; Phase 1 of Huculak Park will be finished and the last of the railway crossing rehabilitation at Rosedale Avenue will be completed.

“It’s a very capital intensive year that’s being planned,” said Martens.

The five-year financial plan bylaw is expected to receive three readings and adoption at the city’s two regular council meetings in April.



Roger Knox

About the Author: Roger Knox

I am a journalist with more than 30 years of experience in the industry. I started my career in radio and have spent the last 21 years working with Black Press Media.
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