Kelowna‘s biggest tax hike in 15 years

By Ron Seymour KELOWNA COURIER
The biggest municipal tax increase in 15 years was approved Thursday by Kelowna city council. Taxes will rise 5.7 per cent in 2008, which translates into an increase of about $90 for the owner of a typical Kelowna home. Through 13 hours of deliberations, council lowered the projected tax increase from 6.5 per cent, largely by delaying spending on two expensive projects, a renovation of City Hall and planning work for Jim Stuart Park. Councillors also used some of the savings achieved in those two areas to hire two more RCMP members, bringing the total to be added next year to six. Almost half the planned tax increase is accounted for by spending on the new $44-million Mission Aquatic Centre, now under construction.

“We worked hard to achieve a tax increase that most members of council can live with,” Mayor Sharon Shepherd said. “I think it‘s a reasonable budget, given the growth we have in the community and the major projects we‘ve already agreed to,” said Coun. Robert Hobson. Shepherd, Hobson and Couns. Barrie Clark, Michele Rule, Colin Day and Carol Gran voted in favour of the 5.7 per cent tax increase. Coun. Andre Blanleil voted against it as he didn‘t support the extra spending on police, saying he would have preferred a tax increase of about five per cent. Coun. Brian Given also voted against the budget, as he is adamantly opposed to the city‘s plan to spend $900,000 next year on a project to use two of the old floating bridge‘s pontoons as a public pier (see story on page A3). Earlier in the day, RCMP Supt. Bill MacKinnon made an impassioned plea for council to hire six new police, rather than the four that city officials had suggested.

“I need those six officers because our calls per member are the highest in the province,” MacKinnon said, adding that there are relatively low clearance rates on crimes like break-ins and thefts because officers are so overworked with cases. Four of the new officers will be assigned to general duty, but one will specialize in tackling organized crime and the other will focus on investigating and providing support to victims of spousal assaults. The addition of six officers will bring the RCMP‘s detachment size up to 139. Total taxation demand in 2008 will rise to about $89 million, up from $81 million this year. Almost half of the increase is made up of revenue from new construction. The 5.7 per cent municipal tax increase will be experience by homeowners whose property rises by the predicted average of 20 per cent, once assessment notices are mailed out in early January. The city plans to set up a page on its website early in the new year so people can enter information on changes in their assessment to find out what the impact on their taxes will be.
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Don Quixote Note: Vernon's tax increase remains at 5.07% for the average house as of yesterday when budget deliberations were suspended due to lack of a quorum. Discussions concerning Fire Protection were ongoing but no approval had been given when the three councillors and Mayor who showed up were forced to suspend discussions due to the pre announced departure of one of their members. Discussions on Police protection were put off to the new year. By contrast to this one hour meeting, the two hour meeting on Thursday was attended by the Mayor and 5 councillors and was very fluent and productive.

The budget deliberations will resume in the new year. The 5.07% increase does not include any amount projected for the new Library/Civic complex should it pass on the refendum date of Jan 26, 2008.