Budget tries to stand out by laying low

Ron Seymour 2009-12-15 Kelowna Courier:

No service cuts, but no extras either. City council got a first look Monday at the proposed 2010 municipal budget, which suggests a tax hike of 1.2 per cent, translating into an extra $20 for the typical homeowner. “The total package is pretty bare bones,” city manager Ron Mattiussi said in presenting the provisional budget. “There are no service cuts, per se,” he said, but some projects have been deferred until the economy improves. Mayor Sharon Shepherd said the city is mindful that many Kelowna families are facing financial difficulties because of the effects of the recession. “It‘s a very tight budget this year,” Shepherd said, but added that tens of millions of dollars in new infrastructure spending will still go ahead in 2010, thanks largely to federal and provincial economic stimulus funds. Of 11 B.C. municipalities with populations of more than 50,000, Kelowna‘s would have the fourth lowest municipal tax rate if council approves the provisional budget as is during deliberations set for Thursday.

The owner of a typical Kelowna home with an assessed value of $486,000 would see their municipal tax bill rise from $1,560 to $1,580. The total property tax payment, including charges for such things as school board, hospital and regional district, will be more than $2,500 after the homeowner grant. The municipal tax demand would rise from $90.1 million to $92.7 million, with more than half the increase coming from the owners of newly constructed properties. Spending on civic operations – covering such things as parks, transportation and utilities – makes up the biggest single item in the budget, at more than $18 million. Policing is $18 million, and the fire department is the third largest consumer of tax dollars at $17 million. The budget does not allow for an increase in staffing in either the RCMP or the fire department. Taxes have risen more than nine per cent in the last two years, with much of the increase attributed to construction of the H20 Centre. Monday‘s meeting was the first for new councillor Kevin Craig, who was sworn into office. Craig, a university student, won a byelection on Nov. 28. About two dozen friends and family members gave Craig a standing ovation.