The Town of Ponoka approved the 2008 mill rate during their council meeting on May 13. The overall mill rate for non-residential (commercial) properties has decreased from 12.51 mills in 2007 to 10.84 mills for 2008. The overall mill rate for residential properties has also decreased from 10.46 in 2007 to 7.43 mills in 2008.
The mill rate is calculated to a per cent by dividing the total assessment by the total number of dollars needed for the year, which equals an amount per thousand dollars of the assessment.
The total mill rate is made up of three different categories, municipal, education and Rimoka Housing Foundation. The municipal mill rate decreased for residential properties to 5.07 mills compared to 6.78 the previous year. The non- residential mill rate decreased from 7.2800 to 6.57. The education mill rate decreased for residential from 3.63 to 2.33 and for non-residential from 5.18 to 4.24. The Rimoka mill rate went from .0500 to 0.0330 mills.
“We are pleased that the extensive development in the community has increased the assessment base of the town,” said Brad Watson, chief administrative officer for the Town of Ponoka. “Between the taxes collected on this increased assessment and the six per cent increase that the town has introduced with the budget for cost of living in society, the mill rate ended up being lower.”
Market values or property assessments for Ponoka have increased by an average of 45 per cent or $207 million from last year. The town reported that overall most properties will see a tax increase for 2008, however this will vary depending on the type of property. Looking at an average assessment for 2007 of $355,000 the total tax increase from 2007 will be $103. Council was presented with a tax levy comparison that showed 10 different residential properties. Some councilors thought that the increase was not enough considering the increases were only $20 to $50 for some residents.
Watson was asked by council if they should increase the mill rate and he advised them during the meeting that it was something that they should hold off until next year.
“We know that there are those who recognize that lowering the mill rate is not prudent with all the facility improvements that could be done in the community,” said Watson. “The council has committed to address this issue as well as the need to increase reserves, including recreation in the town’s future budget deliberations.”
The tax levy for general purposes for the town for 2008 is $3,567,711 compared to $3,185,680 the previous year.
The Town of Ponoka 2008 final budget was approved, an interim budget was approved earlier and the final budget includes the mill rate information. The final operating and capital budget for the town with sources of funding in the amount of $22, 286, 505 and expenditures in the amount of $22,085, 588.