Taxes down but residents can expect to pay more

By Dave PrestonCapital News contributorApr 08 2007 http://www.kelownacapnews.com/

Peachland taxpayers will likely dish out more dollars this year than last even though the District of Peachland is announcing a tax decrease of 3.6 per cent. The district made public its 2007 financial plan Thursday and, as a result of “a healthy surplus in 2006” and additional tax revenues from new construction assessments, the town will offset any increase by $554,881.
The surplus funds and new construction revenues mean the district was able to plan for a zero per cent tax increase. In addition, council has recommended that 10 per cent of the town’s policing reserve fund be transferred to general revenues, effectively creating a general tax decrease.

Significant policing costs were expected starting this year. Both the province and the town believed Peachland’s population, based on last year’s census, would be over 5,000, meaning the district would have to take care of paying 70 per cent of policing costs. Surprisingly, census figures released last month show the town’s population at just below 5,000, letting the district itself off the hook for policing costs. Over the last few years, council set aside money to help cushion the impending increase in taxes because of policing and, as of the end of 2006, had nearly $1 million in its reserve fund.

Although the district itself does not have to collect taxes to pay for policing, Peachland taxpayers will see a new line on their property tax bills this year to pay for police. The province will now charge taxpayers directly for about 50 per cent of expected policing costs for the town -- a direct result of legislation that is currently before the legislature. District documents show the average property owner will pay about $72 this year for policing—a new amount that will show up on property tax bills. The 3.6 per cent decrease in general taxation this year follows a 1.9 per cent increase last year and a zero per cent increase in 2005.

Regardless the planned tax decrease, the town’s recently announced Water Master Plan is about to hit taxpayers in the wallet. According to Treasurer Doug Pryde, the master plan calls for $44.9 million in capital improvements over a 17-year period. Developers and senior government grants are expected to pay for $26.9 million worth of water infrastructure improvements, while taxpayers will be on the hook for $18 million, plus approximately $4 million in ongoing replacement work. To pay for the taxpayer portion of the Water Master Plan, town staff are recommending a new parcel tax be instituted, which will see every single family home and condo paying $135 this year. The parcel tax will escalate, according to Pryde, to $195 in 2008, $245 in 2009 and 2010 and $350 in 2011 and onward.

A total of $10.6 million in revenues will be collected by the district this year, according to the financial plan, and $3.8 million of revenues will be spent on capital projects. The 2007 financial plan will be presented at Tuesday night’s council meeting for consideration.