By Nikki Jamieson
Sunny South News
Coaldale town council has approved a special tax levy to help fund the new rec centre construction.
During their regular April 23 meeting, Coaldale town council reviewed the proposed bylaw Bylaw 754-C-04-19, or the 2019 Special Tax Bylaw.
The bylaw would allow the town to implement a special tax levy of $120/year per developed residential parcel of land within the town, to help fund the construction of a new recreation centre.
“As identified in the 2019-2021 capital budget, the design and construction of a recreation facility within Coaldale has a budgeted cost of $10 million. Subject to passing of the borrowing bylaw, this would be funded through a $10 million debenture, repayable over 25 years,” said Kyle Beauchamp, director of finanical services for the town.
“The special tax levy would apply to each developed residential parcel of land within the municipal boundaries of the Town of Coaldale, at a rate of $120 per developed residential parcel of land within the municipal boundaries of the Town of Coaldale. So this would not apply to vacant lots within the town, nor non-residential lots.”
The current Alberta Capital Finance Authority (ACFA) interest rate is 3.132 per cent, which would create an annual debenture repayment of $579,800.
The town plans on repaying that with the special tax levy.
Mayor Kim Craig asked if the special tax levy would be implemented upon the passing of the town’s borrowing bylaw for the recreation centre.
Beauchamp confirmed that it would be subject to the borrowing bylaw’s approval.
Coun. Bill Chapman asked if the bylaw was strictly for the purpose of funding the rec centre’s debenture repayments, to which Beauchamp confirmed.
Chapman asked if there were any changes in the future, if they would have to revisit the bylaw. Beauchamp said that council would have to approve the special tax levy bylaw on an annual basis.
Coun Roger Hohm asked if a “special account” would be set up for the tax levy, in case construction on the rec centre is delayed, which Beauchamp also confirmed.
Council unanimously passed all three readings of the special tax levy bylaw.