2012 budget to include property tax increases for all but major industry
By Kyra Hoggan
The City of Castlegar unveiled its $19-million 2012 budget to less-than thunderous applause Wednesday, as only seven people (not including city staff and council) showed up for the public meeting.
The turnout was disappointing, but not surprising, according to city councillor and finance committee chair Russ Hearne.
“It’s similar to the turn out we’ve had in previous years,” he said. “I think people are largely content that their money is being managed wisely.”
He said one resident questioned city priorities, given a $30,000 line item for city beautification while the city’s growing senior population struggles with a range of social issues.
Hearne responded that, while he’s not unsympathetic to the concerns facing the city’s aging population, part of serving those same people well involves making the city attractive to new residents, business development and outside investment.
“It’s unfair to taxpayers to start taking on provincial and federal responsibilities and using their property tax to do so, when those same residents are already paying for those services through provincial and federal taxes.”
According to a presentation offered by city finance director Andre Buss, the average resident’s taxes (average being a home worth $255,715) will increase by $35/year, or 4.5 per cent, while major industry taxation will decrease by $55,000 in accordance with an agreement made between the city and Celgar in 2009. All other taxation categories including business and light industry will go up by roughly two per cent.
Buss said this is still a good deal for city residents, as Castlegarians pay less in municipal taxes (not including user fees for water, garbage collection, etc.) than in any other municipality in the region except Fruitvale (comparing Castlegar’s proposed 2012 rates with other communities’ 2011 taxes). When all is said and done, he added, the tax increase should only account for about $2.92 per month for the average resident.
Buss also pointed out that municipal taxation only accounts for about 40 per cent of a resident’s tax bill, as the city collects taxes for other jurisdictions including the Regional District of Central Kootenay, School District 20, the hospital district, the municipal finance authority and the BC assessment authority. The proposed increase would see the average resident paying about $2,676 a year, including user fees and all regional jurisdictions – an amount that accounts for only nine cents of every tax dollar residents will spend this year, with 49 cents going to the province and the remaining 50 cents going to the federal government. Nelson tops the comparative chart, with residents paying $3,900, whereas Nakusp residents pay the least at $2,554, based on 2011 taxation rates.
“Appropriate taxation policy will ensure that debt levels are minimized, funds are available for critical infrastructure renewal and maintenance work and that the community operates in a financially stable environment,” Buss said, adding the city’s debt load has gone done from almost $ 3 million in 2006 to less than $500,000 in 2011.
According to Buss, expenditure highlights include:
- $2,511,000 in general fund capital projects;
- First Street re-grading, paving and sidewalks, $225,000;
- $35,000 for a road assessment. A paving maintenance program that will upgrade roads as needed will be implemented in the following year and will be combined with water/sewer maintenance work;
- 2,511,000 in general fund capital projects;
- $120,000 for a new backhoe. The city continues with its plan to gradually renew its equipment fleet. This will help minimize downtime of equipment, maximize productivity and reduce the on-going maintenance costs of the aging fleet;
- Ongoing commitment to recreation and beautification initiatives. Millennium Park enhancements, $1,000,000 contingent on grant funding or internal borrowing;
- Downtown re-vite area $50,000, Lights on Cobra Climb, $12,000, Communities in Bloom, $30,000, development of Twin Rivers Estate Park, $75,000;
- $4,544,000 in Water Fund capital projects. Including the airport water system project $1,500,000, South Reservoir $894,000, water treatment centre $1,200,000.
- $1,210,000 in Sewer Fund projects. Including the airport sewer system project $680,000. SSTP lime injection and other work $210,000. Sewer main replacement $150,000. Lift stations $60,000;
- Airport Fund capital projects, $1,189,500
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