Burns Lake council has no plans to increase taxes in 2014, but that doesn’t mean local property owners won’t be paying more.
Council approved the municipality’s 2014 provisional budget March 11. While it doesn’t propose a tax hike, increased property assessment values and a hike in sewer and water fees will likely result in residents forking over a little more for services this year.
Sheryl Worthing, Chief Administrative Officer (CAO) for the village, said last week that the total value of all properties in the village (as determined by the BC Assessment Authority) is up slightly this year as a result of revaluation and new construction.
In 2013, total assessed property values within the municipality (including those on First Nations reserve lands) totaled $123,759,972. This year, that figure has risen to $130,801,313.
As a result, even if municipal tax rates remain unchanged for 2014, property owners could be paying as much as six per cent more – though only if the assessed value of their own lands has risen.
Yet even residents who saw the value of their properties drop this year could pay a bit more. At its March 11 meeting, council also gave three readings to the Village of Burns Lake Fees & Charges Bylaw #948, 2014, which contains a 10 per cent increase in sewer and water fees.
In 2014, the owners of single family residences will pay $243.21 and $233.20, respectively, for water and sewer service. This year’s hike in utility rates comes only 12 months after council increased the same fees by approximately 30 per cent.
Increased operating costs are not likely to blame for the rise in water and sewer rates. According to provisional budget documents introduced March 11, the expected cost of delivering these services is expected to drop in 2014.
In 2013, the municipality budgeted $562,616 and $476,746, respectively, for the operation of its water and sewer systems. This year, council has estimated that providing water to municipal properties will cost $451,176, while sewer operating expenses are expected to be in the range of $462,000.
While the increased fees aren’t required to pay for service delivery this year, they will be required for future capital expenditures. According to its provisional five-year capital budget, the municipality plans to spend $2,648,114 on water upgrades and another $736,623 on sewer works between now and the end of 2018.
The largest single expense will likely occur in 2017, when the municipality hopes to replace one of its water towers at a cost of $2 million.
Total spending under this year’s provisional budget (excluding water and sewer expenses) is expected to be in the neighbourhood of $4.9 million, down from last year’s total (which included significant capital expenditures) of $7.6 million.
Tax revenues are expected to be $1,397,324 in 2014, with money from other sources (including the transfer of $483,230 from reserves) making up the remainder required to balance this year’s budget.
While the budget approved March 11 isn’t likely to change, Worthing said it remains provisional at this time.
“The budget is provisional until the five-year financial plan is adopted,” she explained. “That can’t be done until the requisitions are received from other governments. This does not directly affect the village budget, but we are required to wait.”
