Rossland city councillors have decided to stick to a 2.5 per cent property tax increase for households in 2020.
The tax increase was part of a larger 2020-24 financial plan that passed first reading on April 6.
READ MORE: Multiple items on agenda at upcoming City of Rossland council meeting
Councillor Janice Nightingale said the tax increase would help provide extra revenue for the city during uncertain times.
“If we keep our tax rate where it is and we end up with the worst-case scenario, we can move all the money around or even give the money back after we collect it,” said Nightingale.
“Our spending plans and reserves could also be moved around or amended within our budget. Overall, it gives us a lot more flexibility.”
Mayor Kathy Moore said she was hesitant to lower the property tax increase below 2.5 per cent.
“From an optics point of view, being able to say we’re not raising property taxes with a zero per cent increase looks great,” said Moore.
“But when you look at what a zero per cent property tax increase ends up costing the city, which is about $611,000 over five years, that’s a lot of money”
In other specifics, city chief financial officer Elma Hamming said the city will save $160,000 if it doesn’t hire summer students this year due to COVID-19.
City councillors are anticipated to adopt the 2020-2024 Financial Plan at a meeting on May 4.
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