The new Revelstoke city council passed its first budget last week. It still needs to go through a public process and requires final approval by May 15, but it’s unlikely there will be any significant changes between now and then.
There were no big surprises in this year’s budget process. A few items, notably city hall renovations, were deferred, but for 2015 the budget that passed is largely the one that was presented, aside from a lower-than-proposed tax increase on businesses.
That was a concession to the business community, who backed the new council in the last election campaign and have been advocating for a lower tax burden. It was a decision based on politics but those aren’t always the best decisions.
(Notably, Downie Timber and light industry properties didn’t get the same kindness — they both get the full two per cent increase.)
In doing so, council sacrificed some revenue now and in the future. If they do follow through on finding savings and cutting costs, then that’s fine. However, the city has big infrastructure needs that already aren’t being met. The roads are deteriorating faster than they’re being replaced. Capital spending on water is scheduled to go up about 70 per cent by 2019, to $1.7 million, and there are big items in future sewer budgets, even discounting the relocation of the sewer outflow.
Arguably the scariest aspect of the budget is the potential water rate increases, which are set to jump to $575 per year in 2019, up from $369 last year. That’s a massive hike that will counter any efforts to lower taxes, should it not change. The water budget is separate from the general budget, but for the taxpayer, it’s all one cheque to the city.
Council said they will be taking a hard look at spending over the next year in preparation for the 2016 budget. Cutting city hall renovations out of the budget would go a long way towards council’s budget goals, but they will also have to look at service cuts if they really want to save money.
You could choose not to put an elevator in city hall, but at the same time, how long do you continue to not fund road repair properly? Can you find enough savings to cancel out the huge water rate hikes that are forecast?
I wish council luck. Next year will be true test of their fiscal management and their commitment to saving money and reducing taxes.
