Banff taxpayers look set to be hit with a 1.7 per cent tax increase next year.
Council has been grappling with a $30 million operating budget for the past two weeks and as of press time, no other motions had been made to lower the tax rate, though that may have happened at a meeting Wednesday (Dec. 5).
Mayor Karen Sorensen said she believes it is a very fair budget, noting the local tourism economy is showing signs of recovery.
“I hope the taxpayers will understand that a number of hard decisions needed to be made,” she said. “I feel administration and council did a good job of bringing in a reasonable tax increase, particularly compared to other municipalities in Alberta that have already reported five per cent and higher.”
Banff Lake Louise Hotel Motel Association officials said they are thankful and appreciative of investment in tourism, visitor experience and economic prosperity, but had hoped council would hold the line on any new tax increases.
Darren Reeder, the group’s executive director, said a 1.7 percent tax increase is about $123 a year for the average household, including the waste utility.
He said while that may not appear like a lot, the City of Calgary just increased its property taxes by 5.5 per cent and the average household will pay approximately $76 more annually.
“Our members believe tax increases contribute to slower economic growth and reduced reinvestment activities,” Reeder said.
Council approved several new jobs, including a full-time communications specialist to manage the Town’s updated website; a new full-time equipment operator to keep on top of Banff’s streets; and a part-time position for small engine repair and fleet training.
Council had earlier given the okay to hire a full-time urban forester and seasonal labourers to help protect Banff’s urban forest, but changed their minds when the tax rate began to get higher.
Council did, however, direct administration to come back with a report with options that would not cost $100,000-plus, noting there is $60,000 in the budget for the urban forest in 2013.
Councillors Leslie Taylor and Chip Olver fought passionately for the urban forester position, arguing protection and maintenance of trees must be a top priority for the municipality.
“It’s an asset for the environment and the economy,” said Taylor. “It’s also about how we look as a beautiful tourism community in the mountains.”
Olver said the Town of Banff commissioned an urban forest management plan, which indicates what needs to be spent and done to protect Banff’s trees.
“We have not been putting money in each year that the report indicated was necessary,” she said. “We’ve been doing a little bit each year, but we haven’t been doing enough. We need to step up.”
Council is forking out $35,000 for an economic prosperity study and is kicking in $9,000 to help with the beautification of Bear Street with oak barrel planters in the business district.
And, for the first time, taxpayers will contribute $39,000 to the Banff Housing Corporation to help with its operating expenses on community-wide housing issues. There’s also $35,000 for an economic prosperity plan.
STARS air ambulance, on the other hand, was unsuccessful in getting its request of $16,500 based on a per capita contribution of $2, with council indicating that was a provincial responsibility.
“As much as I have a tremendous amount of respect and admiration for STARS, I don’t see it as a municipal responsibility,” said Coun. Grant Canning. “I hope the minister of health steps up and provides more support.”
Mayor Sorensen said some additional services were added, including in the areas of technology and visitor experience, and the bottom line to taxpayers is fair.
“Based on the feedback I’ve received, the industry and community are feeling better about the future of tourism for the next few years compared to the past few years,” she said.
“Council continued to be very sensitive that most businesses are still not doing as well as they were in pre-2008, but I feel one of the focuses was to enhance our visitors’ experience, which is vitally important to the community.”
