Armstrong taxes escalate due to policing and spillway

By Tyler OlsenMorning Star Staff Apr 27 2007 http://www.vernonmorningstar.com/

Armstrong residents can blame an increase in policing costs and the need for a revamped dam/spillway for a larger tax bill this year. The average Armstrong homeowner will pay just over $60 more in city taxes in 2007, an increase of just under five per cent from the previous year, according to the city’s financial plan and budget, which council tabled Monday. A $20 water frontage increase for a rebuilt Silver Star Lakes spillway along with around $30 in policing costs brought on by new provincial regulations accounts for most of the increase. The city also continued to slash commercial taxes, reducing business levies by 3.45 per cent on average.

City treasurer Shelly Thibodeau noted that the commercial rate remains more than three times that of residential. The move is part of a long-term plan to bring down business rates, according to Coun. Chris Pieper, who chairs the city’s finance and administration committee. “This was a dedicated goal by city council to bring down the average business tax to meet the average in the province of B.C.,” Pieper told council. Thibodeau added that the reduction in business taxes did not force the city to increase taxes on residences. The decrease was applauded by he Armstrong/Spallumcheen Chamber of Commerce.

“Any time they bring down commercial it’s great for us and it’s a bonus for our businesses,” said chamber manager Patti Noonan Tuesday. “Times are sometimes tough and we’re thankful for anything the city does that encourages growth of businesses.” The city had hoped to keep taxes in line with the increase in the cost of living, around two per cent. But with a rebuilt spillway costing much more than anticipated, the increase was inevitable, according to Pieper. Proudly citing the city’s high service levels, he added, “If we had less of a tax increase we would have to cut something.

“It’s just to maintain our standards that we set for ourselves.” According to the city’s financial plan, Armstrong boasts the second lowest property taxes compared to a sampling of Okanagan municipalities. Lumby had the lowest property taxes among those areas sampled. Spallumcheen was not included. An average residential property assessed at $248,417 will be subject to $1,274.51 in taxes. The average assessment rose just under 31 per cent from last year, when a homeowner with an average property valued at $189,663 paid $1,214.16.