Third bridge would result in 14-22% tax increase in Lethbridge

2. $250 Million

3. $300 Million

The construction of a Third River Crossing funded through external borrowings and based on a 10-year loan at an interest rate of three per cent would result in the following levels of tax increases:

Image from Lethbridge City Council agenda

The chart above is based on the most recent approximate interest rate from the Government of Alberta. If loan rates increase, that may increase the cost of borrowing.

“The tax rate could be increased over a four year period instead of all in one year (for example the 14.5% tax rate increase could be 3.6% per year for four years),” the document reads.

Options for other funding sources:

If Council decided to approve the construction of a Third River Crossing, the City of Lethbridge says it would look to maximize the use of any external grants available at that time. The Government of Alberta has indicated that the Municipal Sustainability Initiative (MSI) grant program will end in 2024 and the future Local Government Fiscal Framework (LGFF) grant details are unknown at this time.

Based on an average single-family home assessment of $269,500 and the 2021 Single Family Residence Mill Rate of 8.7505, the costs on property taxpayers would go up by:

Image from city document

As this process is in its preliminary stages, the city will be bringing back the matter at a later council meeting.

To see the full document on the tax implications for the third bridge, go to Tax Implication for Third River Crossing.

by Connor Gunn

Third bridge would result in 14-22% tax increase in Lethbridge

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