City Council will give third reading Monday to a 2008 property tax bylaw that provides an additional $2.9 million to reduce the debt required to build the Aquatics and Wellness Multiplex.

In December, Council passed a 2008-2010 operating budget that includes a 9.7 per cent increase in municipal tax rates for this year and, Monday, gave the first two readings to 2008 property tax rates.

The municipal tax levy for 2008 is about $61.5 million as a result of the increase. With a $58.6 million budget requirement, that means $2.9 million in extra revenue, created by growth and additional tax room provided by the Alberta Government reducing the education mill rate.

“Our City continues to grow as evidenced by development and building permits increasing and we are pleased that a brisk local economy allows us to reinvest the resulting revenue into a major local initiative,” says Mayor Dwight Logan. “By reducing the debt on the Aquatics and Wellness Multiplex, we can help fund future projects through debt while reducing debt servicing charges.

The additional revenue will be built into the City’s tax base. By using the additional revenue to reduce debt over the next three years, borrowing will be decreased by a total of $8.8 million, reducing debt services charges by $672,000 in 2010.

A typical house assessed at $303,000 will see its total taxes (municipal and education) rise from $2,405 per year to $2,639.

“That is less than $20 per month and allowed us to increase police and fire protection and invest additional funds in snow removal, pot holes, road repairs and other areas identified by residents in the 2007 election,” Mayor Logan says.