Slave Lake property owners can expect to pay more when their 2008 tax notices arrive. How much more depends on a couple of factors – most notably their property value assessment.
Council passed a new tax rate by-law that will see taxes increase by an average of three per cent. ‘Average’ is the key word, because some tax bills will go up much more than that, thanks to a 31 per cent increase in property values across the board. On the residential side, property values went up by an average of 35 per cent – on the non-residential side, inflation ran at just under 20 per cent.
The result of all that real estate market inflation – plus significant real growth – was a big jump in the size of the pie the town gets to draw its taxes from. Council had already decided how much money it needed to run the town this year, and was looking at a 4.6 per cent tax increase to achieve it, pending the news from the property value assessment. It came in so much higher than anticipated that suddenly council was looking at less than a one per cent increase to cover the budget. Accordingly, at council’s May 6 meeting, councillor Ed Procyshyn proposed a new mill rate that would achieve a 0.83 per cent tax increase.
That’s when the debate began. Mayor Karina Pillay-Kinnee came well prepared to argue for a three-per cent increase, so as to raise some extra money for looming infrastructure projects. She listed arena renovations (over $7 million) and a new or improved RCMP building.
But most notable on her list was the town’s water intake and storage system, which the town believes will require millions in upgrades at some point.
“I propose we go to three per cent and put the additional money in a water sustainability reserve,” she said.
Pillay-Kinnee said she had been asking people in the community how they felt about a three per cent tax hike.
“They kind of thought it was ridiculous we were squabbling over 50 bucks or 100 bucks,” she said.
The ’50 bucks’ figure refers to about how much more the owner of a $250,000 house would pay at a three per cent tax increase vs. the .83 per cent one.
“I think it would be very shortsighted if we didn’t, knowing the infrastructure demands we face,” the mayor said. Councillors Procyshyn, Rob Chalmers and Laura Vanderwell Ross all expressed a reluctance to increase people’s taxes when it wasn’t absolutely necessary.
“I’m concerned about the double whammy,” said Procyshyn, referring to the town’s tax hike, plus whatever affect higher property values would have on people’s tax bill.
Added Chalmers: “When I hear people talking about taxes, they say: ‘”I’m already paying too much.”
“I’m not prepared to move above two per cent,” said Vanderwell Ross.
Councillor Rob Irwin chimed in on the side of the mayor. He emphasized the need to raise money for securing Slave Lake’s potable water supply. He noted that there are only two days’ worth of water in the reservoir – not enough for comfort should the supply be cut off for any reason. He pointed out that the town might have to spend big money to relocate its water intake facility, for which it has no money in reserve.
“This is something we need to address much sooner than later,” he said.
The mayor introduced an amendment to the Procyshyn motion, calling instead for the three per cent tax increase. The amended motion passed first and second readings by a 3 – 2 vote, with Procyshyn and Vanderwell Ross opposed.
According to the rules, councillors must give unanimous consent to give third reading to a by-law, if all three readings (votes) are to take place at the same meeting. Council had already heard from its finance director Julia Seppola that she needed the by-law passed right away so tax notices could be prepared and sent out without delay.
Under those circumstances, Procyshyn declared that despite his disagreement with the three per cent figure, he would not oppose giving the by-law third reading. Vanderwell Ross went along with him and the final vote went 5 – 0 in favour of the new mill rate by-law.
“I still don’t agree with it, but I don’t want to hold up the process,” said Procyshyn.
Seppola said the result would be a $158,000 surplus (assuming all taxes are collected). Council then passed a second motion to allocate that money to a potable water sustainability reserve.

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