Kelowna homeowners could face $100 tax hike for ’08

By Ron Seymour December 8, 2007 Kelowna Courier

The average Kelowna homeowner would pay an extra $100 in municipal taxes next year under the city‘s proposed 2008 budget. A projected tax increase of 6.5 per cent means the owner of a typical single-family home would see their city tax charge rise from $1,500 to $1,600. The planned increase is three times higher than the inflation rate, but Mayor Sharon Shepherd says the higher-than-usual jump may be unavoidable. “I think all of us on council would like the tax increase to come in at about the same level as the cost of living increase, and in fact that‘s what‘s been happening for many years,” Shepherd said Friday. “But now a lot of the costs we have for infrastructure are running higher than the general inflation rate,” said Shepherd, who nevertheless added she hoped council might trim the projected tax increase to five per cent during daylong budget deliberations on Thursday.

Almost half of the tax increase will go toward construction costs for the new Mission aquatic centre, the $44 million swimming pool now under construction. Two other big cost drivers are plans to hire six new RCMP officers and increased spending on road improvement projects.
Total taxation demand is planned to rise from $80.7 million this year to $89.8 million in 2008. Revenue from new construction will account for almost half the increase.
Other highlights from the proposed budget:
• Spending in various departments expressed as a percentage of the total operating budget: recreation and parks, 25 per cent; police, 20 per cent; works and utilities, 15 per cent; fire, 12 per cent.
• The total number of full-time positions will rise from
720 to 750, with numbers up most in the finance department, the airport, sport and recreation and the transportation division.
• The city will spend almost $7 million on buying land for new parks, $2.8 million to begin developing Stuart Park across from City Hall and $3.3 million to redevelop the Orchard Park bus terminal.
Preliminary information provided to the city by the B.C. Assessment Authority suggests the typical residential property has increased in value by 20 per cent over the past year. Someone whose property has risen in assessed value by this amount would see their municipal taxes rise 6.5 per cent. If the property‘s assessed value has gone up more than the average of 20 per cent, the owner‘s taxes would also go up more than 6.5 per cent. Conversely, if their property has risen by less than 20 per cent in value, their taxes would go up by less than 6.5 per cent, and may decline.