Homeowners bracing for tax hike

Ron Seymour 2009-05-05 Kelowna Daily Courier:
Kelowna property taxes are forecast to rise more than 15 per cent in the next five years, council heard Monday. The projection was delivered by city finance officials as council gave formal approval to a municipal tax increase of 3.5 per cent for this year. The owner of a typical Kelowna home assessed at $492,000 will pay an extra $52 in municipal taxes in July. However, when other local charges are factored in ñ for things such as the school district, garbage system, hospital and library ñ the average total tax bill will rise six per cent, from $2,372 to $2,520, after the homeowner grant deduction. After the council meeting, Mayor Sharon Shepherd said she thought the municipal tax increase of 3.5 per cent was reasonable despite the economic downturn. We understand the economy is very tough for people out there,î Shepherd said. ìI just feel council did the best they could in maintaining the level of service. Shepherd said this year’s budget deliberations, at 15 hours, were the longest in the 13 years she’s been on council, reflecting the degree of care and attention brought to the discussions.

Since the budget was given preliminary approval ñ with the tax increase initially forecast at 3.4 per cent - Shepherd said she hadn’t heard many objections from residents. The five-year plan calls for tax increases of 3.5 per cent in 2010, 2.9 per cent in 2011, 3.6 per cent in 2012 and 2.0 per cent in 2013. These are, of course, estimates, and council is not held to them, said finance director Keith Grayston. The biggest change from the preliminary budget was the addition of $28 million in new capital projects, with two-thirds of the funding coming from the provincial and federal governments.

The city’s share is $9 million, but virtually all of that comes from reserve funds and development cost charges, so there was virtually no impact on taxation. "This is the time to invest in critical infrastructure, benefiting from lower construction costs, while at the same time stimulating the economy," Shepherd said. Announced over the past few months, the new capital projects include the widening of Gordon Drive and Highway 33, and off-road pathways along Lakeshore Road and Cawston Avenue.