Leduc eyes possible tax reduction

tax cut

One member of Leduc city council has floated the idea of using part of the 2023 budget surplus to reduce property taxes for residents and businesses this year.

Councilor Laura Tillack raised the idea while council was being briefed by administration on preliminary year-end results at Monday night's meeting.

"Just finding a way to bring down taxes and expenses to the people who live in our city," Tillack told her colleagues.  "I'm not making a motion.  I'm just simply putting that out there."

Following budget deliberations for 2024, the projected tax increase for this year is 5.1%.  However, some members of council and a number of residents have spoken out since then asking that the city reduce spending to help reduce the tax burden on ratepayers.

Currently, the city has a policy that surplus funds be split 50-50 between operating reserves and capital reserves.  Tillack suggests a three-way split which could free up close to six hundred thousand dollars in tax relief.  It was pointed out by the mayor and administration that the surplus is one-time money and at least one of Tillack's colleagues pointed out reserves are a good place for surplus cash in light of what the city has faced in recent years.

"Drought, famine, pestilence, war.  All the four horsemen of the Apocalypse, and we don't know what the future holds." Ryan Pollard said.

He did agree anything to reduce the cost of living for residents was worth considering.  At the same time, council was reminded it does have the option to adopt Tillack's idea.

"When we're actually setting the tax rate then we can take a look at reducing the transferred reserves." Mayor Bob Young pointed out.  "Every year we transfer money to reserves.  And so, if council decided it wanted to transfer less to reserves that would be one way that you could lower the tax rate."

The process for setting the 2024 mill rate begins at council's next meeting April 22.