BUDGET ADJUSTMENTS COULD SET 5.49% PROPERTY TAX RATE

An early release of a proposed budget provides for an opportunity for public feedback.  As a result of feedback and discussion this week, the City Administration has prepared some options that, should Council approve of all the options, the revised property tax increase could be 5.49%.

“This is part of the regular budgeting process,” says City Manager Murray Totland.  “We have already realized a savings of $200 thousand from the assessment growth figures which were finalized this week.”

With a finalized property tax roll, the proposed property tax increase reduces by 0.11% to 7.21%.  The Administration has also prepared some options that Council may consider such as the adjustment to funding plans, phase-in taxation plans and service levels as well as consideration of new information. 

“On top of the assessment figures, we have identified a number of other funding opportunities that amount to a further $2.98 million reduction, or an additional mill rate reduction of 1.72%,” says Chief Financial Officer Kerry Tarasoff.

“This includes a phase-in change to the road and sound wall levy; however it does not change the total investment originally proposed for each year for roads, or actual timing of the work in the case of the sound walls,” Tarasoff says.  “We’re proposing to stretch the remaining two years of the 2.92% road levy over three or more years. This would then become a 1.94% road levy.”

The difference needed to fund the road investments would come from one-time capital funding available from sources such as land development profits.

Other proposed adjustments suggest deferral of some civic facility and organizational funding items.

Tarasoff points out that moving to a three-year phase-in could reduce the proposed property tax increase by nearly a full percentage point. This adjustment would also have a beneficial impact to the 2016 budget as a similar reduction could be incorporated.

In all, with the assessment figures and adjustments there is a potential reduction of $3.18M or 1.83%.  The property tax increase, if all of these adjustments were included, would then be 5.49%

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