Late taxpayers smacked by late charges

Wednesday, 18 July 2012 02:00 Ron Seymour Kelowna Daily Courier:
Tardy taxpayers will add a record $140,000 to municipal coffers in Lake Country. Twelve per cent of all property owners in the municipality north of Kelowna did not pay taxes that were due earlier this month. As a result, they've been hit with a 10 per cent penalty on top of the outstanding taxes. The number of delinquent accounts is up marginally from the comparable figure last year, when the district applied penalties totalling $138,000.  Penalties for late payment of property taxes have spiked noticeably in Lake Country since the onset of the recession in 2008. In 2007, penalties amounted to just over $80,000, but the total has risen every year since then.  Lake Country expected to collect a total of $19.5 million in property taxes for the municipality and other taxing agencies such as the school district and regional district, by the July 3 deadline.   But collections to date only amount to $17.6 million. About $500,000 has been deferred under government programs, the main one being a scheme that allows elderly property owners to postpone tax payment against the eventual disposition of their estate.   That leaves $1.4 million in outstanding taxes, representing about seven per cent of the total.   In West Kelowna, which also applies an automatic 10 per cent penalty to outstanding tax payments, 93.5 per cent of property owners paid their taxes on time, almost the same number as last year and in 2010.   "That leaves $2.8 million still to be collected this year," West Kelowna chief financial officer Jim Zaffino said.   The City of Kelowna takes a different tax collection approach,  applying a five per cent penalty in early July on outstanding taxes, and a further five per cent in early August. So far, 95 per cent of the total taxation demand of $207 million has been paid. Eighty-eight per cent of the owners of 51,120 separate properties have remitted their taxes. "That's right in line with other years at this point," said Matt Friesen, accountant for the city's revenue branch.

201
 The Table is a screenshot taken from the Vernon and Coldstream calculators (See links on right hand side of the blog.)  (School taxes are estimated but should be fairly accurate)

This shows the 2012 tax increase for the Average Vernon Property when compared to 2011. The same valued property was used for the Coldstream year over year tax increase. The RDNO totals are different as Coldstream and Vernon can be in different functions. (ep Fire dispatch).

You can see that the gap between Vernon and Coldstream for the same valued average property was (2152.37 - 1927.49 = $224.88 in 2011 and decreased to 2178.92-1983.60 = $195.32 in 2012.

The official City of Vernon calculator should go online shortly and we can see how accurate my calculator is.  In the meantime play around with the online calculators I have posted and see how your property has fared when compared to the same valued property in Coldstream (or vice-versa)

2101 Tax Rates Vernon

2011 Tax Rates Vernon

Tax Hikes Set in Coldstream & Armstrong

Written by Glen Morrison  107.5 KISSFM 

Coldstream Mayor Jim Garlick

Tuesday, 24 April 2012 15:20 Coldstream homeowners are facing a six percent tax increase this year, or less than 60 dollars on the average 447 thousand dollar home. Mayor Jim Garlick says it's mostly police costs and roads.  "It would probably amount to a one percent raise overall in those dollar terms in the city of Vernon, but for Coldstream a small movement creates a large percentage." Overall it amounts to about 240 thousand dollars. Armstrong is matching the provincial inflation rate with a 2.4% tax increase(***).  Mayor Chris Pieper says they're not increasing the commercial-light industrial rates. "The other highlights in the budget are zero increases for water and sewer, a slight reduction in garbage due to a contract renewal, and a slight increase in blue bag recycling." The city's also set out it's capitol projects with a substantial amount of paving and water line work.
----------

Coldstream Residential Tax Calculator:

https://docs.google.com/spreadsheet/ccc?key=0AqjuHhD4a7O5dHduSEdaM05zQkU1c2llZUg5cGJmU1E

Coldstream Taxpayers can put in their 2011 and 2012 assessment data and see what their 2012 taxes will be.

Vernon Taxpayers can put in their 2011 and 2012 assessment data and see what their 2012 taxes will be and their increase (or decrease) if their Propertty was located in Coldstream.

***The Provincial inflation rate at 2011 year end is 1.7%. The Canada inflation rate at 2011 year end is 2.3%.

City lowers tax increase

By Richard Rolke - Vernon Morning Star Published: February 12, 2012 1:00 AM
Taxes are still going up but not by as much as expected.  Vernon council voted unanimously Monday to decrease the 2012 tax increase from two to 1.7 per cent after learning that provincial traffic fine revenue is considerably higher than was originally forecast.  “Our economy is still facing challenges and we’re looking at what we can do for our citizens,” said Coun. Catherine Lord. The city had anticipated receiving $496,000 in traffic fine revenue but the actual number is $802,000. Of the difference, $80,000 to $90,000  will go towards lowering taxes and the rest will be put into  reserves for a new RCMP detachment in the future. Coun. Bob Spiers believes the city had a responsibility to reduce taxes because of other financial pressures facing residents like water rates. “We’ve got a heck of a lot of people who will feel a pinch,” he said. While lowering the tax hike was unanimous, some elected officials expressed some reluctance because there are other demands on the city. Among them is improved pedestrian safety at Okanagan Landing and Myriad roads. “I want to make sure we’re providing a level of service and if there are safety concerns, we need to address them,” said Coun. Mary-Jo O’Keefe. The city held a public open house and an input session on the proposed 2012 budget Monday. Two people showed up — former councillors Shawn Lee and David O’Keefe. “It’s distressing to see a poor turnout for such a presentation,” said Lee. Lee was pleased that the surplus traffic fine revenue was going towards long-term planning for a new RCMP building. “It’s a good decision,” he said, adding that reserves for future capital works are important.
----------
Don Quixote Note: A very important decision to top up the proper reserves was also made during a previous budget session : "Moved by Councillor Spiers, seconded by Councillor Quiring: THAT Council directs staff to transfer the 2012 salary surplus to the Infrastructure Reserves at the end of the year; AND FURTHER, directs staff that the Divisional Salary budget for 2013 is to be budgeted at the actuals, rather than the top of the band. CARRIED. "

The 2011 salary surplus transfer amount turned out to be $345,875. It is anticipated that it will be the same in 2012 as the 2.9% exempt salary increase in 2012 was also budgeted as an addition to last years amount. This will at 2012 year-end flow directly into an infrastructure reserve.

A good idea of other budget decisions can be made by reading the Feb. 27th agenda package and referring to the minutes of the Special Committee of the Whole Meeting of Council held February 9, 2012, be adopted. (P. 6). Earlier budget decisions can be found at Feb. 13th Cow Agenda package AND FURTHER, that the minutes of the Special Committee of the Whole Meeting of Council held February 3, 2012, be adopted.   (P .2)

• Agenda Package  (Feb 27 for feb 09 budget)
• Agenda Package (Feb 13 for previous special budget minutes)

Special Meeting of Council - Budget

Start Time: 1:30pm - February 9, 2012
Location: Council Chambers

• Agenda Index 
• Agenda Package 

Tentative deal reached to keep RCMP

Jeff Nagel - BC Local News Published: November 28, 2011 11:00 AM 
B.C. now appears close to inking a new 20-year policing contract with the RCMP.  Negotiations in Ottawa ended last week with a tentative agreement that would keep the Mounties as the police force for most B.C. cities, said Langley City Mayor Peter Fassbender, the municipal observer in the talks. No details have been released on the new contract, which is subject to detailed technical review,  consultation with cities and may require further refinement.  To meet an end-of-November deadline imposed by Ottawa, the deputy ministers leading the talks for each province or territory are to confirm by Wednesday they will recommend the agreement to their respective ministers and cabinets, Fassbender said.  Final decisions to sign would still be up to each provincial cabinet, he said, and promised city councils in RCMP-policed cities will get detailed briefings as soon as possible. Fassbender said the recent talks have been "productive" and said federal officials have become more willing to address municipal concerns.  "Everybody came to the table with a desire to find the best for both Canada and the provinces and territories," he said. Cities had demanded greater control over how the RCMP are managed, particularly in the containment of costs and greater transparency and accountability.  Federal officials in September told B.C. to sign the new RCMP contract by the end of November or they'd begin withdrawing the Mounties in 2014. That ultimatum prompted B.C. Solicitor General Shirley Bond to begin considering the launch of a replacement provincial force, if necessary. Any new contract would still have opt-out clauses under which any city can form its own municipal force or the province could end the RCMP contract and form a provincial force.  The deal is not expected to change the current cost-sharing formula, which sees large cities pay 90 per cent of local RCMP costs, while smaller ones pay 70 per cent. A new contract management committee to address local concerns on an ongoing basis is among the new components of the contract.