Cold Lake, AB –.During the May 23 regular meeting, City Council voted unanimously to set the 2023 municipal tax rates, resulting in an average increase of 3.55 per cent.

The 2023 residential tax rate was set at 8.4948, down from 8.7765 in 2022, the multi-family residential tax rate was set at 9.0819, up from 8.9312 and the non-residential tax rate was set at 13.1707, up from 12.7760 in 2022. These tax rates allowed City Council to impose only a minimal average tax rate increase, while still achieving a balanced budget with no deficit.

These rates will generate about $22.19 million from properties within the city to balance the City’s $54.82 million operational budget. In 2022, the City’s operating budget stood at $52.85 million and the municipality collected $21.37 million in taxes to balance its budget. The 2023 Operating Budget includes a transfer to capital projects of $6.4 million.

“Inflation was a major factor when it came to this year’s budget deliberations and thus had an effect on where this year’s tax rate would be set,” Mayor Craig Copeland said. “Council kept a balanced and disciplined approach to the budget, which helped keep our tax rate relatively low and saved our residents from a major tax hike.”

Council passed the 2023 Operational Budget on December 13, 2022 in the amount of $54,821,629 (which includes a transfer to capital of $6,371,000). The City receives $32,630,050 from a combination of sales and user charges, government transfers (including ID349 and ICF), penalties, franchise agreements, investment income and rentals. The City must generate the remaining $22,191,579 (2022: $21,373,561) from municipal taxation to balance the 2023 budget.

The tax rate is a factor used per $1,000 of property value to determine the amount of taxes a property pays for municipal services. Taxes are based on the assessment, which means that a tax rate increase or decrease does not necessarily mean an increase or decrease in the amount of municipal tax a property owner will pay compared to previous years. Depending on the change in assessment and tax rate, the impact will vary from property to property. 

The City’s total taxable assessment increased by $116.4M when compared to 2022. Taxable assessments increased by $13.9 million for new construction and $13.6 million due to inflation. For all City properties, including non-taxable properties, assessment increased $15.3M due to new construction and $132.1 million due to inflation for taxable and non-taxable property.

Tax notices will be sent out by Friday, May 26, 2023 with a payment deadline of June 30, 2023. For more information on the City’s capital and operational budgets, please visit www.coldlake.com. Information on past tax rates and the municipal property taxes collected is in the City’s annual report, is also available online.

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