Saturday, December 16, 2006

3.5% taxation hike on the table in Kelowna

By Ron Seymour Saturday, December 16, 2006 http://www.kelownadailycourier.ca/article_3977.php

Kelowna homeowners would see their municipal taxes rise 3.5 per cent under a proposed city budget to be considered by council next week.The owner of a typical home would pay an additional $56 in municipal taxes in 2007 if council adopts the budget as presented by staff.The biggest increases in the city budget are for roadwork projects, policing, and parks and leisure services.“My goal, throughout preparation of the 2007 budget, was to achieve a municipal tax increase that addresses primary needs for the community while recognizing taxpayer ability to pay,” city manager Ron Born writes in a report to council.It’s expected the average Kelowna home will have risen in assessed value by 20 per cent when notices are sent out in January.The owner of a typical home that has risen in value to $427,000 from $356,000 would see his or her municipal taxes climb to $1,693 from $1,636. Municipal charges account for about half the total tax bill, with the rest made up by school board, regional district and hospital fees.Those whose homes have risen in value by more than 20 per cent would see their municipal tax go up more than 3.5 per cent. Conversely, those whose homes have risen in value by less than 20 per cent would see a smaller tax increase.Total municipal taxes collected by the city are forecast to rise seven per cent, to $79.9 million from $74.7 million. But revenue from new construction will account for about half of that, so the tax increase for current residents will be 3.5 per cent.The city’s projected net operating expenditures of $70.6 million in 2007 break down this way:-- 25 per cent, or $18 million, for parks and leisure services, up from $17.1 million last year.-- 21 per cent, or $15.1 million, for policing, up from $14.1 million.-- 16 per cent, or $11.4 million, for works and utilities, up from $10 million.-- 13 per cent, or $9.5 million, for the fire department, up from $9.3 million.Spending by the planning, human resources, financial services and other city departments account for the rest of the expenditures.The city plans to add 16 full-time positions next year, bringing the number of municipal employees to 711.As well, two new RCMP members are proposed, bringing the detachment’s total strength up to 133. Also, two more firefighters will be hired on April 1. The police wanted five new officers, and the fire department hoped to add four men, but Mattiussi said there were other, higher-priority items.Council will go through the budget at a daylong session on Wednesday. In recent years, council has trimmed the proposed budget by half a percentage point or so.

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