BANFF – Banff’s business community is calling on council to temper tax increases for 2024 and make the tourist town’s economy a higher priority.
Wanda Bogdane, executive director of Banff and Lake Louise Hospitality Association (BLLHA), said it is important the municipality gets to the mandated 5:1 tax split ratio, which means commercial properties can pay no more than five times the taxes than a residential property for the same assessed value.
While Alberta has given the Town of Banff until 2027 to come into conformance, Bogdane said there are also other ways of ensuring taxes don’t increase, such as partnering with businesses, such as housing as one example, in addition to watching municipal spending.
“Our hope is that we can impress upon you the need for tax levels overall to be tempered to ensure that as the ratio adjusts, the tax resident base is not unduly burdened, while the commercial sector is more acknowledged as part of the equation,” she said during a Sept. 11 presentation to council.
“When it comes down to those really, really hard decisions, it’s making sure that the economy is not necessarily left behind… there may still be investments. I want to make sure that point is very clear. It doesn’t mean cutting everything.”
The 2023-25 operating budget has an overall 8.68 per cent tax increase for 2024; however, that will change with council’s review of municipal services and budget deliberations, which typically get underway toward the end of November.
Bogdane said a review by BLLHA showed that fiscal direction and economic considerations do not trend high as priorities in council’s directional documents, such as the 2023-26 strategic plan, either tactically or strategically.
She said a lack of fiscal consideration is a risk for the long-term economic health of the town, adding strong economic policy is good for the entire community.
“We have limited commercial potential and are a one-horse town… while we celebrate these constraints they do challenge the conventional standards that lead to developing financial security,” she said, partly in reference to the federally-legislated commercial cap in place since the late 1990s.
“With the developable growth coming to an end, this is no doubt a potential impact for the town’s financial landscape, for example, what will replace the funds typically coming to the municipality from the current level of development permits?”
Council reviewed its top strategic plan priorities for 2024, such as the community plan, housing, climate action and implementation of the moving people sustainability report, but also added a priority to align with the 10-year vision for tourism in Banff and Lake Louise.
Mayor Corrie DiManno said the findings from the BLLHA board were “illuminating” and “eye-opening."
“I think it's really important context as we go into not only our budget, but as we continue to work on the community plan,” she said.
Coun. Grant Canning said certain priorities rise to the top in the strategic plan, but that doesn’t mean tourism and the economy aren’t important.
“Even though it’s not a direct category in the existing (strategic plan) document doesn’t mean it’s still not super important to us,” he said.
