OLDS — On average, Olds tax rates are about 20 per cent lower for residential and about 25 per cent for non-residential than comparative communities, the municipality's chief administrative officer Brent Williams says.
Williams made that statement during town council’s June 23 meeting as he discussed the Town of Olds' 2025 financial update.
The six comparator communities are Innisfail, Blackfalds, Morinville, Edson, Taber and Whitecourt.
However, Williams said a tax bill contains more than just municipal tax rates.
“There's also the provincial education requisition, which comparing 2024 data, we got charged about a million dollars more on average than our comparative communities,” he said.
“And on the seniors’ tax requisition, which in our case is Mountain View Seniors' Housing, our requisition was about $350,000 above that average.
“So that factors into that final property tax bill that people see at the end every May.”
Williams said town officials determined where Olds stood tax rate-wise by comparing figures with six similar communities, based on the 2024 financial statements for Olds and each of the other communities.
“When you look at the revenue side and expense side, our total revenue compared to our like-size communities, we roughly collect about $3 million less in revenue and spend about $1 million less in expenses,” Williams said.
“Obviously that changes year over year slightly, and that discrepancy can be related to things such as the (municipality) using more reserves to fund more of its expenses, like capital renewal, which we've been doing in recent years, tax rates, our main source of revenue.”
Williams said two of the Town of Olds' largest expenses are for salaries and contracted services.
“When you talk about the work that gets done in a municipality, whether it be driving the Zamboni, clearing the snow, mowing the grass, checking water quality, it's either done by staff or by contractors,” he said.
“In our case, we spend less than in both areas. In the case of staff, salaries were around $3 million less. Contracted services about the same, actually.”
The Town of Olds spends more than comparators in two areas: utilities (water, sewer and storm water) as well as parks, recreation and culture.
Williams said on average, the municipality spends about $2 million more than comparators on utilities. He said that’s directly related to one of its biggest expenses and most frustrating problems: inflow and infiltration into the community’s sewer and water system.
Williams said the Town of Olds spends about six per cent more -- $300,000 to $400,000 -- in parks, recreation and culture, than its comparator communities.
“Everything else is basically on or under significantly, whether it be administration, legislative services, protective services, than our like-size communities,” he said.
