The average resident’s tax notice will see an $8 decrease in 2015, up from the $3 savings originally proposed for the municipal tax reduction as discussed in the February budget deliberations.
Council gave three readings to the financial plan on Monday, which included greater savings for the typical home – a single-family dwelling with an assessed value of $399,000 in 2014.
The proposed tax decrease had been set at 0.15 per cent, but is now 0.41 per cent, due to a reduction of about $324,000 in the police’s budget request. Police originally requested a 3.48 per cent budget increase, but that was reduced to 2.82 per cent, though it will not impact staffing.
The city’s reduction is largely due to savings from the elimination of the Abbotsford Heat contract and changes to the Global Spectrum (operators of the Abbotsford Centre) contract.
Municipal taxes account for about two-thirds of an average resident’s tax notice, which also include school, hospital and regional taxes.
The financial plan will come to council for final adoption at an upcoming meeting.
