Tuesday, December 26, 2006

Three projects axed to drop the tax bill (KELOWNA)

By Jennifer SmithStaff reporterDec 24 2006 http://www.kelownacapnews.com/
It may not be a Boxing Day windfall, but at 2.99 per cent, the average increase on Kelowna taxpayers’ property tax bills this year was carefully designed to look like a bargain. Heading into budget negotiations on Wednesday, city staff earmarked the provisional budget increase at 3.5 per cent—significantly more than the two per cent target the city hit in years gone by and more than several councillors were willing to support. “Inflation happens one little hit at a time,” Coun. Norm Letnick said, noting he would not support the hike as the discussion opened Wednesday. And for the most part, it appeared fellow councillors agreed as they trimmed three major projects from the wishlist to bring the tax increase down to 3.01 per cent. From there city staff made a few quick tweaks to which account paid for some summer co-op students, and the projected increase hit 2.99 per cent. On an average single-family home assessed in the $420,000 range, the budget discussion results add $43 to the tax bill. “Some of my colleagues sort of set the goal to be under three and I knew that was going to be a real challenge,” said Mayor Sharon Shepherd, as the 12-hour meeting wrapped up. “So I was very pleased at the end of the day that we achieved 2.99 per cent.” To make the cut, council axed a $100,000 revamp for the Maude Roxby Boardwalk behind Kelowna General Hospital in the Mission along with planning for the third phase of the Central Okanagan Bypass. The plans alone for the third phase of the long-planned artery paralleling the highway from downtown to the airport, would have cost $800,000, with $200,000 coming from this year’s tax revenues and another $600,000 from city reserves. Planning for the $1.3 million second phase of the COB project, however, did get the nod of approval. The roadway proved the single truly divisive issue of the day as Coun. Michele Rule—who has expressed grave concern for the environmental damage the new artery would create—excusing herself in tears after several councillors dismissed her motion to revisit potential alternate routes. “I don’t feel we’ve really looked at all the options,” she said. Several councillors, including fellow environmental advocate Coun. Robert Hobson, all told her the project’s path was the only way. “To me, even thinking about this would be the most incompetent move we could make,” said Coun. Andre Blanleil, who stuck to message track, stating the bypass is vital to the valley’s economy. The final project knocked from staff plans was a $110,000 allotment to the Housing Opportunities Fund, an account reserved to help bolster affordable housing stock in the city. “It wasn’t a unanimous decision to do that,” said Shepherd, who noted a developer has contributed enough to make up the shortfall created by council’s decision. “We have to see some action out of that fund before council will be comfortable adding more money to that fund if it’s not achieving the units that we want to have happen. ” Another initiative from the mammoth 2006 Affordable and Special Needs Housing Task Force project did survive proposed budget spending cutbacks— some $30,000 will be set aside to hire a land economist who will evaluate whether the Official Community Plan should amended to force developers applying for rezonings to provide affordable housing. Council also saved several smaller items including $25,000 to hold another mayor’s youth forum, $2,000 for athletic excellence grants and a $150,000 goose management plan. According to urban forestry manager, Ian Wilson, geese are likely the only furry or feathered friends caught in the city’s crosshairs this year—other than beavers. Another line item calling for further pest control got plenty of support from Shepherd, who noted that she’s heard complaints on everything from raccoons in Glenmore to rats and coyotes and the bunnies. But that expenditure was left on the council chambers floor, axed from the budget. Final budget deliberations will come forward late spring, with several items left up for discussion. Among the topics still not resolved are three of four costings for bus route improvements promised to UBC Okanagan students before their Dec. 1 U-Pass vote at UBCO and a $200,000 expenditure for a potential partnership with the Central Okanagan school district on a community school in the Mission’s Kettle Valley.

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