KELOWNA – City Council recently reviewed the 2017 Financial Plan submitted by staff, setting a tax increase of 3.86 per cent after a full day of deliberations.
A 3.86 per cent increase translates, on average, to an $72 annual increase on a City of Kelowna property tax bill (based on an Average Single Family Home, which is assessed at $558,370).
City staff submitted a provisional tax increase of 4.40 per cent to Council at Monday’s Council meeting. Council sets the tax rate requirement after reviewing the 2017 Financial Plan to determine which projects to fund and which projects to defer or cancel, balancing the community’s interest in maintaining existing levels of services while planning for significant infrastructure needs.
Council increased the number of bylaw officers from two to four in 2017, but managed to reduce the overall proposed tax increase by postponing the conversion of the Glenmore Fire Hall to a career station until next year.
This year’s budget increase is necessary to meet previous years’ commitments and provide the resources or funding needed to keep up with our growing population, including our homeless population. Just under one-half of the 2017 tax demand is from the Police Services building project and employee contract costs.
Total capital project taxation funding was included at $12.2 million. 2017 capital investments seek to balance renewing existing infrastructure and creating new, with 54 per cent asset renewal (i.e. maintenance and replacement of existing City buildings and infrastructure), 31 per cent to keep up with growth and 15 per cent new.
The final budget and tax rate will be presented to City Council in April 2017.