Projected tax hike may drop

Jeremy Deutsch - Kamloops This Week Published: December 09, 2010 3:00 PM 
Just in time for the holiday season, as shoppers open their wallets for the perfect Christmas gift, city hall has released its initial budget projection for next year.  At this point, the city is looking at a preliminary tax increase of 3.19 per cent, which works out to $46 for the owner of an average home in Kamloops, which is assessed at $308,000.  The 3.19 per cent is expected to make up for a $2.5-million increase in the city’s general fund, which has grown, in part, from contract obligations.  The city will be paying out $973,000 more for its RCMP contract and $1.4 million in wage increases to its employees, along with a transit contract hike worth $868,000.  “There’s not a lot we can do there unless we cut service levels,” said Sally Edwards, the city’s finance and information technology manager.  Other additions to the general fund include $223,000 for Kamloops Fire Rescue, $180,000 to operate the Rayleigh slo-pitch facility and $115,000 to run the November 2011 civic election.  However, city officials are quick to note, the 2011 budget is still in its infancy and the numbers will likely change. City council has yet to tackle a list of supplementary budget items, which will come forward in January.Nor do the preliminary numbers take into account the city’s revenue, which won’t likely be known until the spring.  Mayor Peter Milobar said he expects the tax increase to be less than the projected 3.19 per cent.

He said council has made it clear it won’t be happy with a large tax increase.  For the last few years, the tax increase has hovered in the two per cent range.  Milobar believes next year’s increase could still drop to the two per cent range, but cautioned it’s too early to tell.  Though some sort of tax increase is inevitable, residents can take comfort in knowing there will be no increase in water and sewer/solid waste rates. The next step in the budget process is for city council to review the city administration’s operating and five-year capital plans starting on Jan. 18.  There is also be a public budget meeting scheduled for Feb. 8 at Interior Savings Centre to give residents a chance to weigh in on some of the supplemental items in the budget.The final budget won’t likely be approved until May.