Campbell Riverites are waking up today to a 14.7 per cent tax hike.
Or not.
City staff recommended council hike residential taxes by 14.7 per cent for 2012 at last night’s meeting. But because it came after Mirror press time, visit www.campbellrivemirror.com to see if they went with that recommendation.
The increase translates to $174 more per year for an average home valued at $268,000.
However, council will have the last say.
“We…build our budget the way we feel is appropriate,” said Coun. Mary Storry.
The city is facing a $2.18 million budget deficit and to make up the shortfall, council will have to raise taxes by almost 15 per cent or make further cuts to city services.
The city entered into the budget planning process with a $3.6 million deficit, largely due to a$1.8 million reduction in taxation revenue from Catalyst after its property reclassification.
Over the last few financial planning meetings, dating back to Feb. 14, council has chipped away at its services in an effort to balance the budget.
That still leaves the city with a $2.18 deficit. Council made a decision two weeks ago to not increase business taxes this year, which leaves the residential sector to make up the shortfall.
Laura Ciarniello, the city’s general manager of corporate services, said homeowners would need to pay 14.70 per cent more, but in reality would only be paying 9.09 per cent more, because council has nixed the water parcel tax for 2012 and has reduced garbage collection fees by $20. Ciarniello said although the increase may seem high, the $2,086 average annual residential tax payment “can be compared to the cost of other household items such as telephone ($25-$60 per month), cable ($35-$155 per month), and hydro ($50-$250 per month).”
And taxpayers will likely have to get used to increasing costs.
Ciarniello anticipates budget shortfalls for the next two years.
In 2013, council may consider reinstating items it has cut from this year’s budget including $18,500 for council travel, $14,000 for grass trimming and manual mowing, $49,000 for horticulture and $24,000 for Communities in Bloom.
Ciarniello also expects an addition to the budget of three per cent to address inflation and increases in wages and contractual obligations in the amount of $800,000. Offset with new construction taxation revenue of $200,000, the residential tax increase for 2013 is estimated at 8.29 per cent. In 2014, Ciarniello forecasts a tax increase of 3.02 per cent.
Council debated the budget last night after the Mirror went to press. See www.campbellrivermirror.com for updates.
