Armstrong residents will be facing a small tax hike in 2014.
City staff is recommending a 2.75 per cent property tax increase that equated to $20.75 for the average assessed residential property.
“There are two components to the increase,” said Terry Martens, Armstrong’s chief financial officer.
“The three-quarters of a per cent hike is for operations. The other two per cent is for road infrastructure replacement. It will be transferred to the roads and drainage reserve.”
The city’s proposed operating budget for 2014 is $5.73 million, but does not include capital projects.
The total capital budget for the year is $1.34 million, with funding coming from reserves, federal and provincial grants, operations and developers.
Eight major capital projects are planned for this year, with the biggest being the Dunn Road reconstruction, which includes street, curbs, storm sewer, water and sanitary sewer, at a projected cost of $740,000. That project is slated to start May 5.
There will be changes to water and sewer fees, and no service level changes in the 2014 budget.
Residential garbage fees will go up 2.4 per cent, or $1.80 for each home.
However, there will be a 54.6 decrease in residential recycling fees, amounting to $10.41 for each home for the year.
“This is due to the end of the regional district/city involvement in residential recycling in May,” said Martens.
The city’s operating revenue will increase $600,000 from last year, and there will be an operating expense increase of $700,000 from last year’s actual expenses.
That will include a lump-sum sewer debt reduction payment of $361,000 as the city has a chance to repay debt five years early.
“It’s very rare that these opportunities come up but when we do get them, we try to take that option and save a bunch of interest,” said Martens.
The city’s debt per capita will reduce from $154 per person to $63, a number Martens termed “very low” for a municipality.
Other proposed major capital projects in Armstrong’s five-year plan, running through 2018, include Okanagan Street reconstruction between Patterson Avenue and Wood Avenue in 2015, water main replacements in 2015 and 2016, reconstruction of Willowdale Drive, Jarvis Street and Jarvis Crescent in 2017 and cemetery expansion in 2018.
The City of Armstrong must still pass the five-year plan. It is expected to do so at a special meeting of council May 5 at 4 p.m.
Cities must have their budgets into the province by May 15.
