Armstrong residents are facing a moderate tax hike in 2013.
Council unanimously gave three readings to its five-year financial plan bylaw which would see a proposed municipal tax hike of 1.75 per cent, or $11.79, based on an assessed average home price in the city of $284,768, this year.
“Basically, this is an inflationary increase,” said Terry Martens, Armstrong’s chief financial officer. “The provincial inflation rate was 1.2 per cent. The vast majority of our 1.75 per cent increase is inflationary.”
Residents would also see a two per cent rise in the residential water flat fee per unit. The old cost was $145.20 per year.
Under the proposed budget it would hike to $148.11, and would be the first rise in residential water rates since 2010.
The general municipal tax levy and the rise in water fees are the only increases under the city’s control.
Things out of the city’s control, such as regional district, hospital district and library costs, will go up by .84 per cent, or about $6 per household.
There would be a very small decrease in residential recycling fee, dropping to $19.08 per year from $19.33.
Tax revenue projections include an increase of $30,400 for new construction. The 1.75 per cent tax hike would bring in $28,533 in revenue, meaning a combined increase in tax revenue of $58,933.
For the first time since a policy was instituted by former Mayor Jerry Oglow, Armstrong’s business class to residential class tax rate ratio is not higher than the provincial average.
It’s exactly the same, a factor of 2.67, meaning for every $100 residential taxpayers pay, businesses pay $267.
“We finally hit the target,” said current Mayor Chris Pieper, who was happy with the overall budget.
“We worked fairly hard to recognize the current economic status. We recognized the businesses in getting it it down to the provincial average. The slight increases we did put into it were based on inflationary numbers and things like that.”
Final adoption of the budget is expected next month.
