Property Tax Increase 2020-2021
Property Tax Increase 2020-2021. As everyone should have received their new property tax assessment I know I was curious what that will mean for my property taxes for the new year.
The City of Leduc has done an amazing job at lowering our expected tax rate for the 2020-2021 year. As of April of last year they were expected to have a tax increase of 4.34% for this year but have dropped it to 0.27%. This amazing reduction was because of:
Reduced new staff significantly in 2020
Reduced new staff in 2021 & 2022 downwards to align with growth
Performed a detailed review of major cost centres
$750K Contacted Services Allowance (2019)
$230K Snow Removal Allowance (2019)
$250K Materials and Supplies Allowance
$240K increase Salary Vacancy Allowance
Creation of the Lean Budgeting Risk Mitigation Fund
I remember from last year that they had to pull in a reserve fund to keep our taxes lower as they had planned for higher income in permits and new business. The financial manager said that we won’t be able to do this next year so we needed to plan ahead. And they have succeeded and well surpassed, i think what many have thought was possible.
The most creative thing that I think that they did was the creation of the Lean Budgeting Risk Mitigation Fund. Most budgets have a spot for surprises, risks, for example would be for snow removal there would be a savings incase a machine broke down.
Well with the new budgets there isn’t one. They have pooled every committee’s funds into one fund to help keep everyone’s budget lean. I think that this shows how amazing our community is and how thought provoking our Financial Department staff is. I am continually amazed with our city staff and this is just one out of the box idea that they had to keep money in all our citizens pockets.
Along with the reductions they have continued to provide:
• Continued provision of a high level of services
• Maintenance of the City’s capital assets
• Enhanced focus on environmental initiatives
• Continued support community groups
• Final year of Protective Services smoothed mill rate strategy
• Second year of 3 for enhanced transit smoothed mill rate strategy T
They also approved to have 2021 property tax increase to 1.49% and 2022 at 1.48%
Looking for the Council Minutes, CLICK HERE.
Watch my YouTube Video, CLICK HERE.