Wolfville drops property tax rates to help residents cope with inflation
Planning for new facilities, economic development among budget highlights
Reduced tax rates in the
Town of Wolfville aim to help residents and businesses address the added financial pressure of inflation.
Data from Statistics Canada shows that the Consumer Price Index (CPI) has risen by 5.7 per cent over the past year in Nova Scotia.
Although municipalities like the Town of Wolfville are not immune to inflation, council recently approved operating and capital budgets and set tax rates while keeping the rising cost of living in mind.
Council approved an operating budget for 2022-23 totalling $12 million and a capital investment plan totaling $5.9 million. The residential tax rate has been reduced by 1.75 cents, bringing the rate down to $1.4575 per $100 of assessed property value.
The commercial tax rate has been reduced by one cent and is now $3.575 per $100 of assessment. The business development area rate has been cut by two cents to $0.26 and the fire protection area rate has been decreased by four-tenths of a cent to $0.052.
Rising inflation affects assessed property values. Some have referred to it as a “double whammy” when assessment increases and tax rates also increase. This scenario results in significantly more property tax revenue for a municipality.
If assessments rise while tax rates remain stable, a municipality would still see an increase in property tax revenue.
Mayor Wendy Donovan said assessment increases were in excess of five per cent this year. By lowering tax rates, Wolfville council wants to ensure that property tax increases stay within the cost of living increase.
She said there was real concern among councillors that this is a difficult time for a lot of people financially.
“Had we kept the tax rate as it was, it would have been certainly a windfall for the town, but that’s not our only goal,” Donovan said.
They tried to balance what the town must provide with making the situation more palatable to individual taxpayers and businesses. Donovan said they considered greater cuts to tax rates but couldn’t go any further as the town is experiencing its own inflation pressures.
She said there is a lot in the budget that she is excited about. One example is the
partnering possibility of the town with the Annapolis Valley Regional Library on a combined new town hall and library building.
The mayor said there are a couple of different sites being considered.
“We’ve agreed that it would be preferable to build those together,” Donovan said.
Another example is the town embarking on a plan for its parks, something that the mayor said will take these spaces to “the next level.”
Parks are often thought of as places for sports and young children. Donovan said a greater emphasis could be placed on making them more attractive to adults and seniors,
accessibility particularly those facing challenges.
There is a provincial mandate that all public buildings and spaces be made fully accessible by 2030. Donovan said Wolfville was the first municipality in the province to create an accessibility plan, but “that was the easy part.” They now have to make the necessary upgrades and changes, and there are significant costs associated.
Donovan said she is also excited about the town’s ongoing focus on active transportation and climate change initiatives.
With more growth on the horizon, the town will undertake a secondary planning project for the east end of town. Donovan said they have to be proactive and plan for those areas where residential development is expected to occur.
This includes ensuring adequate sewer and water capacity. An expansion of the sewage treatment plant and looking at an additional well for the town is part of this.
The town has applied for provincial and federal grant money for the sewage treatment project.
She said they had planned for a new fire station in years 3 and 4 of the town’s longrange capital investment forecast. Considering discussions with the County of Kings about partnering on a new station to serve an amalgamated Wolfville and Greenwich fire district, this has been moved up. The town has budgeted for planning for the new fire station in 2022-23.
There were challenges to balancing the budget, with major cost increases in several service areas. For example, policing costs will increase by $259,000 in 2022-23. Council was able to use the town’s cash reserves to offset a number of cost increases.
WOLFVILLE TO REJOIN VALLEY REN?
Although council has yet to officially decide, there are provisions in the budget to rejoin the Valley Regional Enterprise Network (REN).
Wolfville left the Valley REN in 2019 after council decided that the town would put its annual contribution (then $23,000) toward its own economic development initiatives.
Donovan said she was not a fan of the Valley REN at the time, but she now is a supporter of its work. She is recommending that Wolfville rejoins the group.
“I know that we need strong economic development support in our region,” Donovan said.
She said a group of mayors representing Valley municipalities has been meeting to look at revising inter-municipal service agreements, and the Valley REN has been part of these discussions.
Valley REN CEO Jennifer Tufts said it’s a case of “the more the merrier” when it comes to partnering on regional economic development. She said it’s “extremely beneficial when the entire region is pulling together collaboratively.”
The West Hants Regional Municipality recently signed on for another year. Tufts said the welcome mat is rolled out for Wolfville or any other municipality or First Nations
Annapolis community within the Valley catchment area that is not currently a member to join.
She said each partner is different, even down to the community level, and this is what makes the Annapolis Valley so unique. “Whatever your preference is, whatever your hobby is, whatever your likes are, there is a spot for you in the Valley,” Tufts said.
She said all municipal partners and First Nations communities feature many assets and “immense opportunities.” This makes them very attractive and enticing. Wolfville is no exception.
The town has a great deal to offer with its proximity to wineries, culinary experiences, tourism assets, Acadia University and much more, she said.