The original budget, adopted by the old council, had called for a 2.5 per cent increase.
But a second look at the books by the current council has revealed some shortfalls for 2009 that need to be covered.
“We’ve more or less nailed it down,” said Mayor Jim Garlick. “Now we’re looking at a 2.86 per cent increase.”
That works out to an increase of approximately $22.70 for the average residential property’s annual tax bill (the average assessment for 2009 is $535,103). It’s approximately $2.80 more than the original 2.5 per cent tax increase.
Garlick wants residents to understand that Coldstream’s taxes don’t make up any resident’s total tax bill.
“It’s about one-third of their taxes we affect,” he said, noting hospital, school and North Okanagan Regional District as some of the other contributing factors to an overall tax bill.
Everyone’s tax bill also differs according to certain services.
For example, septic users will face an increase due to the septage parcel tax going up.
On the other hand, taxpayers should see a reduction of about 3.9 per cent at NORD, said Garlick.
That reduction is due to the fact that the Fire Training Centre costs are now being charged to municipalities on a user-fee basis.
“The larger number of people using the facility could change the numbers,” said Garlick, explaining that Coldstream was previously charged a flat rate.
With the new system, considering Coldstream has a high number of volunteers who are trained at the centre, their costs could increase.
Therefore to cover the costs, that is part of the reason a tax increase is needed (it also includes some additional paving work at the Coldstream Fire Department and equipment replacement and repair costs).
With NORD’s tax amount being lower, and Coldstream’s being higher, it should actually even out for residents.
“It should be very close to a wash,” said Michael Stamhuis, chief administrative officer.
Considering all the factors facing Coldstream in the next year, Stamhuis is impressed with the number council has come up with.
“I really think council has done a good job of keeping a lid on things considering everything.”
One of those factors includes the closure of the Owens-Illinois glass plant. A reduction in the assessment value means Coldstream lost $175,000.
Coldstream could have made part of that loss up by increasing the mill rates for that tax sector. But Garlick says the last thing they want to do is lose more business.
“We don’t want to end up downloading that reduction in taxes on Tolko.”
Snow removal costs were up this year and revenues are also on the decline in other areas, including building licenses, permits and application fees.
“Those have been knocked way down,” said Garlick. “We’re looking at a lot more conservative numbers.”
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