KELOWNA – Kelowna City Council recently approved the final 2016 Financial Plan, which includes a municipal tax increase of 4.11 per cent.
A tax rate of 4.11 per cent means the owner of a single-family home with an average assessed value of $501,410 will pay $1,861 for the municipal portion of their property taxes. A City property tax bill will also include other user fees such as curbside collection and levies for other taxing authorities (e.g. School District, Regional District of Central Okanagan, Library, Hospital and B.C. Assessment Authority).
The increase is slightly lower than the 4.12 per cent increase approved by Council at the provisional budget deliberations in December 2015.
“We often see changes between provisional and final budget,” says Financial Planning Manager George King. “New information is available between December and April, including emergent items, which are included in the final budget. This final budget, we saw an increase in revenues in transit and development services and a reduction in revenues from natural gas sales. These adjustments contribute to the slight reduction in tax demand from provisional budget.”
Taxation accounts for approximately one-quarter of City of Kelowna funding sources in 2016, with the other three-quarters coming from sources such as grants, reserve funds, and fees and charges.
Previous years’ budgets include commitments that impact the 2016 Financial Plan, such as borrowing cost for the new Police Services building and the annualization of six new members hired in 2015.
Council sets the tax rate requirement after reviewing the 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.
For thirteen years, the City has received the annual Distinguished Budget Presentation Award, and most recently for the 2015 Budget. Presented by the Government Finance Officers Association, the award recognizes the City’s achievement in meeting the highest principles of governmental budgeting.