A slightly smaller property tax increase may be the result of the growth in the town's property assessment, presented to town council last night.

The average single-family property assessment in Cochrane has risen by $40,000 since last year to $495,700 from $455,900, an 8.72 per cent increase.

Duplexes and townhouses rose nine per cent and condos 5.16 per cent.

The assessment increases vary from community to community, with the largest increases witnessed in Cochrane Heights, Riverview, Crawford Ranch, and Headlands.

In contrast, the average non-residential assessment increased by 1.66 per cent.

In total, 87.69 per cent of properties in Cochrane are residential, and 12.31 per cent are nonresidential. Cochrane strives for a two-thirds residential and one-third nonresidential split but that gap has increased, and nearby major centres are facing a similar situation.

Councillor Alex Reed sought feedback from corporate service executive director Katherine Van Keimpema on how the town can reduce the gap. 

"I think that making sure we're supporting our economic development initiatives that would encourage more nonresidential or commercial businesses to come to town would help that split in assessment.," said Van Keimpema. "That would be a good focus for council where there are opportunities to undertake commercial development."

The overall parcel growth was 2 per cent, down from 2.27 per cent last year. Housing starts were way up in 2021, but with challenges presented by the pandemic, we won't understand its impact until 2022.

The assessments are based upon market conditions of July 1, 2021, and the physical condition of the property as of Dec. 31. They reflect the impact of a strong real estate market and rising prices.

The assessment notices will be mailed on Jan. 21. It allows property owners to review their assessments and discuss any questions or concerns before taxes are calculated.

Town officials are encouraging property owners to review their assessment and compare it to the previous year, as well as to the assessments of similar neighbouring properties. Any questions or concerns can be directed to the Assessment department. If a property owner is not satisfied with their assessment after discussing it with an assessor, they can file a formal complaint with the assessment review board. A formal complaint can only be submitted within the 60-day customer review period.

The assessments are prepared annually using mass appraisal techniques, which determine property values by grouping similar properties at a specific point in time. Assessments do not reflect a single sale price, rather they show typical market value on the same date each year.

The tax rate will be adjusted to reflect the $32 million required for the 2022 budget. Whether it will impact the projected 10 per cent municipal tax increase will be known in May when council sets the 2022 tax rate.

May's tax notices also include the provincial education requisition, expected to add around 34 per cent to the overall tax bill. The exact amount of this requisition won't be known until April.

Approximately one per cent of the overall bill includes a requisition for the Rocky View Foundation to help provide seniors housing.

The town does not retain any of the taxes collected on behalf of Alberta Education or the Rocky View Foundation.