This year's budget is ready to go to public consultation after last Wednesday's budget meeting.
While the meeting only lasted about 30 minutes, three major highlights came out of it, including how much more a resident with an average assessment hike will pay, why rent for the police station costs about $21,000 per month and the final property tax rates.
Mayor Wilfried Vicktor said that most people he talked to expect a 2.1 per cent increase in property taxes.
“So if the average increase is 27 per cent for the average residential property, that average resident will have a 2.1 per cent increase,” said Vicktor.
Finance director Dale Courtice used a sample Kawkawa Lake property, which saw a 26.47 per cent assessment hike. They will pay a 2.8 per cent property tax increase compared to last year.
Coun. Bob Erickson asked about the “extremely high” police costs and wondered about the $255,000-per-year rent the District pays for the police station, which translates to $21,000 per month.
“Is there any place in town that size that rents, or leases, for [$21,000] per month?” asked Erickson, highlighting that no equivalent building in town would fetch that much in rent.
“Why don't we appeal that? Because that's a huge cost. It's an unreasonable cost to the District.”
Chief administrative officer John Fortoloczky also noted the costs were high and is working on this. Fortoloczky said the federal government does not pay for the properties which the RCMP occupies, and included in the rent are asset management funds. He elaborated that if a municipality does not own the building, they collect an accommodation charge, per square foot, that includes money to manage their buildings across British Columbia.
“So they're saying they assume the risk and if we need a roof replacement, they can easily do that,” said Fortoloczky. “If the RCMP uses a building that a municipality owns, the RCMP will occupy the building for free, although the municipality will still have to pay for asset management costs.”
Fortoloczky suggested that using a District-owned building for the RCMP could potentially save costs despite the RCMP paying no rent and even if the District takes on the asset management costs.
“There are no guarantees, but clearly, like you Coun. Erickson, the numbers to my mind are a bit high,” said Fortoloczky.
Using the revised assessment roll with finalized home valuation figures, the District is setting the tax revenue increase at 2.16 per cent.
“That is an average and it will depend on a case-by case basis whether or not you will pay more or less than this percent for municipal taxes,” said Fortoloczky in an email. “There will be various examples presented at the public consultation.”
Public consultation is on Wednesday at 6:30 p.m. at District Hall.