DWK taxpayers face 5% tax hike

Wayne Moore - Dec 9, 2009 CASTANET:

Despite some objections from Mayor Doug Findlater, it doesn't appear as if West Kelowna taxpayers will get a break on taxes in 2010. A year ago, West Kelowna Council reduced an initial 5% tax increase down to a mere 2% hike. It seems that will not be the case in 2010. Council got its first look at the five year financial plan Tuesday, a plan which proposes a 5% tax hike for each year through 2014. During discussions on the document, Findlater suggested that a 5% increase was too high. "I think we are going about this the wrong way. At this point I think we should be looking at this at a much higher level and to that end I think a 5% tax increase is too high," Findlater told his council colleagues. "I think we should be asking staff to come back with a scenario for 2% and a scenario for 3% or maybe 3.5%, taking into account the need for appropriate reserves which we need to keep an eye on." A motion, moved by Councillor Duane Ophus, asking finance to come back with a 3% scenario did not get any support from the rest of council. In fact, Ophus, who made the motion to stimulate debate, voted against it.

Councillor Gord Milsom says he believes a 5% increase is needed to get going with the job at hand. "I feel we need money to build reserves and we have a lot of catch up to do on infrastructure," says Councillor Gord Milsom in voting against the review. "Unfortunately it's expensive, but the sooner we get going on it the better." Chief Financial Officer Jim Zaffino says the 5% increase across the board is what was recommended through the government study. "It projected a $15.2M reserve after that period. That's where we are aiming," says Zaffino. "We are ahead of schedule mostly because of efficiencies and additional grants we received. Council wants to make sure we have enough reserves for future capital requests." Zaffino says the municipality does not necessarily want to be borrowing for capital projects at this time. "Council is keeping that in mind," added Zaffino. "They have instructed staff to send a report like this so they can evaluate where we should be and where we are at."

He says staying ahead of governance projections in regards to reserve funds will give the council of the day either a larger reserve pool or the flexibility to increase the infrastructure demands of the community. The 2010 financial plan calls for $21.9 million to come from property taxes and close to $25 million coming from other sources including sale of services, government transfers and government grants. West Kelowna Council will begin debating specific budget items and expenditures in the new year.