Your City Taxes

Cranbrook's proposed Five Year Financial Plan is now ready for viewing on the City's website at:
http://www.cranbrook.ca/index.php?option=com_content&view=article&id=590:proposed-2012-2016-five-year-financial-plan-information-package&catid=90:2012-news&Itemid=595

Written submissions concerning the plan are invited from the public and will be considered by Council at the Special Meeting on Monday, March 12, 2012, at 3:00 pm in the City Hall Council Chambers.
Written submissions must be received at City Hall by 4:00 pm, Wednesday, February 29, 2012


We will provide a few excerpts extracted directly from that plan.

Property Taxes


Service Levels

The majority of the City’s revenue is obtained through property taxes. When preparing the Budget, staff first determines the amount of revenue required to provide all the desired municipal services to our residents. Staff then determines the amount of revenue (other than property taxes) the City can expect to receive through fees and charges, federal and provincial government grants, etc. The difference between the budgeted expenditures and the other revenue represents the amount of property tax revenue the City must collect to provide the services to the levels prescribed by Council. To adjust the amount of property taxes required, the City must adjust the service levels provided. The challenge is to determine the appropriate service level weighed against the cost of providing that service. When the cost of providing a service increases (e.g. through inflation, changes in statutory requirements or product cost increases), the City must either raise more revenue to provide the same level of service or reduce the level of service provided.

The Tax Rate

The City determines the “tax rate” (a charge per $1,000 of assessed property value) by dividing the sum of all the assessed property values in the City by the amount of property tax revenue that must be collected. The “tax rate” is simply a means of determining how much each individual property owner must pay to receive the package of services provided by the City. The rationale for this approach is that owners of larger properties pay more than owners of smaller properties or that individuals owning larger homes, in general, have an ability to pay more than those in lesser valued properties. Consequently, we must calculate the tax rate each year based on the revenue the City must collect and the assessed values of all the properties in the City at that time. Changes in the total assessed values in the City will cause the tax rate to change, but will have no effect on the amount each property owner must pay unless his/her assessed value change is different than the average change in value.