Financial plan includes 4.5% tax hike (KELOWNA)

by Wayne Moore - Dec 16, 2008 CASTANET:

The average Kelowna homeowner could pay an additional $73 in municipal taxes in 2009. The tax impact is for the average Kelowna home valued at $495,000. That figure was part of the preliminary financial plan unveiled Monday by Kelowna Financial Director, Keith Grayston.

The financial plan includes an overall tax increase of 4.49 %, 1.79 % for the Mission Aquatic Centre and 2.7% for other budget impacts. The 2009 tax demand of $90.925 million is up more than $6.5 million from the 2008 tax demand of $84.4 million. The tax plan also includes an estimated $2.75 million in new construction revenues. Grayston says the new construction figures are based on initial estimates provided by BC Assessment. "We have since received subsequent information that indicates that level may be over stated," says Grayston. "We may be back with an adjustment at final budget once we have more details with lock in of the assessments. Apparently it has caused a bit of a change for the new construction revenues that we have." Grayston says the 2008 and 2009 tax demand has been adjusted slightly because library services have been taken out of the budget.

There will be a separate taxing requisition for those. While council won't begin debating the budget line by line until January 7, at least one councillor already thinks the increase is too high. "I'm having a little trouble with 4.49% in these economic times, so I guess we'll be looking at areas where we can make some changes to that," says Councillor, Andre Blanleil. "I understand we have the pool in there, but I think we need to do a little belt tightening and that's obviously something we'll deal with at budget time." In breaking down the figures, Grayson says the actual operating budget in 2009 is pegged at $81.3 million, an increase of $6 million over 2008, the capital program budget has increased from $20.7 million to $21.5 million. He adds general revenues, those revenues not associated with a particular department, increase by nearly $300,000 from $11.6 million to $11.9 million.

In 2008, council was presented with a budget increase of 6.48%. After lengthy deliberations, that number was eventually pared down to 5.66%.