Coldstream taxes climb

Brent Mutis - Vernon Morning Star Published: January 28, 2010 6:00 PM

Significant losses of tax revenue and new Canadian accounting rules have Coldstream staff considering a 5.59 per cent tax increase for residents as part of the 2010 budget. The increased tax rate equals about $47 per home based on an average residential property price in Coldstream of $468,500. Tax dollars that used to roll in from the Lavington glass plant aren’t coming anymore as the land is no longer classified as a major industrial property. “It’s a significant loss of tax dollars to the community and we’ve made provisions for that in the budget,” said Trevor Seibel, director of financial administration. The glass plant used to kick in about $96,000 in tax dollars.

Also, the Public Sector Accounting Board changed its rules so municipalities must now treat capital assets the same way a for-profit company would. Investment in road maintenance and equipment infrastructure will take up $292,000 this year. Other expenses are legal fees from the water devolution process ($90,000), increased policing costs ($21,000) and contractual wage raises ($49,000). Making up for those costs by themselves would have meant a 14.4 per cent tax raise but council has chosen to use funds from the operating and statutory surplus and reserves to allow for a lower tax increase. The tax raise for residents is necessary just to continue providing the same level of services currently offered in the district. “The tax policy objective is to stabilize tax rates and levees over the long term,” said Seibel. “We want to offset the cost increase for services we provide, maintain current services and stay competitive with surrounding communities.“The 5.59 per cent is just covering current services and maintaining what we have. It’s not allowing us to do a whole lot of new projects.”

A public open house is planned for Feb. 17 and comments gathered there will be presented to council March 8. District staff began working on the 2010 budget last summer and held public meetings on it but they’re hoping to garner more public input as the process continues. “Those meetings were open to the public,” said Seibel. “Hopefully during the next phase we can engage the public more as we move forward.”