Engagement - Proposed 2018 KID Budget
Kananaskis Improvement District (KID) is gathering feedback on how you would prefer to be informed about future KID budget and taxation rates, the level of service you would prefer to receive within the KID, the change of taxation you deem reasonable, and the timeline in which you prefer to receive your notices.
For the 2018 fiscal, KID Council are proposing the following:
The Minister of Alberta Environment and Parks is requesting KID Administration to gather input from ratepayers about the taxation rate. The proposed 2018 KID Budget and taxation rate which has been approved by your KID Council projects an increase of 15.0% compared to 2016, and a 31.8% increase compared to 2017.
The increase is proposed to establish a more consistent KID budget and taxation rate year over year, plan for future capital investments, and provide a higher level of service to KID ratepayers.
The proposed 2018 taxation rate is 31.8% higher compared to 2017, which had a one-time draw down of the contingency reserve for taxation relief; 12.7% decrease in taxation rates compare to 2016.
Using 2016 as a benchmark for historical norms on tax rates, an average residential ratepayer will experience a 15.0% increase in their tax bill from 2016 (31.8% increase compared to 2017); an average non-residential ratepayer will experience a 14.2% increase in their tax bill from 2016 (an 20.0% increase from 2017).
The following have contributed to the increase in tax rates:
- Budget increases have not kept pace with inflation and have decreased purchasing power an estimated 15.4% since 2008.
- Taxable assessed land value has still not recovered from the 2013, the year of the Kananaskis flood, and is still depressed by 9.6%.
- Implementation of the new amortization policy accounts for over half (8.1% compared to 2016) of the 15.0% taxation increase proposed in the 2018 KID Budget. When compared to 2017 taxation rates, the new amortization policy accounts for 9.4% of the 31.8% taxation increased proposed in the 2018 KID Budget.
- More appropriately funding the delegated authorities KID Council is responsible for.
Put simply, amortization is the planned spreading of revenues for payments to replace assets of large costs over numerous years.
The KID amortization policy is in accordance with the Public Sector Accounting Standard (PS3150), which states:
- The cost, less any residual value, of a tangible capital asset with a limited life should be amortized over its useful life in a rational and systematic manner appropriate to its nature and use by the government.
- The amortization of the costs of tangible capital assets should be accounted for as expenses in the statement of operations.
- The amortization method and estimate of the useful life of the remaining unamortized portion of a tangible capital asset should be reviewed on a regular basis and revised when the appropriateness of a change can be clearly demonstrated.
The tax rate approved by KID Council supports a stabilisation of year over year tax rates. The graph below provides a ten year comparative.
With this information we now ask for your input to help inform the KID budget and taxation rates, the level of service you would prefer to receive within the KID, the change (if any) of taxation you would deem acceptable, and the timeline in which you prefer to receive your notices.
We respect your privacy. Any personal information you provide in the survey is protected by the privacy provisions of the Freedom of Information and Protection of Privacy Act (FOIP). Personal information will not be used or disclosed for any purpose other than stated, without written consent or unless required to do so by law.
If you have any questions about this survey or the privacy of your input, please e-mail email@example.com.
Thank you for your interest and we look forward to receiving your responses!