Squamish residential property taxes will rise an average of 11 per cent, following final budget negotiations by District of Squamish council on Tuesday (April 24).
In a contentious 5-2 vote, council approved in principal this year's budget, which also includes an 8 per cent tax increase on the average business.
This means that a homeowner who owns a residence worth $382,00 - the municipal average - will pay and additional $144.97 more this year, for a total average tax burden of $1,389.97. Most of the increase stems from an increase in assessed values, with mill rate barely increasing from 3.34 to 3.38.
A business assessed at the average of $417,000 will pay an additional $283 for a total of $3,723. The commercial mill rate was decreased slightly to counteract the small increase to the residential mill.
"I don't think we've done a good job," said Coun. Mike Jenson, who opposed the final motion. "There should be more we can do to lessen the burden on businesses."
Coun. Corinne Lonsdale also opposed the motion.
"I really think that there are some areas that we can still cut," said Lonsdale. "As long as I think that, I won't be supporting any of these motions."
In trying to decide a tax rate - after the operating budget deficit had been reduced to $1,020,000 following three months of negotiation - four separate motions were attempted with tax increases varying from 9 per cent for both businesses and residences to 12 per cent for residential and 6 per cent for commercial. While all passed, they only made it through with 4-3 majority.
"I think that it's important that we build as much of a consensus as possible," said Mayor Ian Sutherland.
The motion also includes $210,000 towards the capital budget to help reduce long-term debt.
"We cannot keep borrowing for these projects with long-term debt," said Coun. Raj Kahlon, who supported the final motion after the inclusion of the capital transfer.
"At least this shows that we are moving in the right direction."
Currently the district's capital budget, which operates separately from the operating budget, is funded primarily through long-term debt rather than taxation.
"We borrowed $6 million last year to fund our capital deficit," said Coun. Greg Gardner. "I have not seen the adjusted numbers after Tuesday's meetings but its estimated at something like $5 million. Those ongoing deficits are not sustainable."
This year's budget process has been a lengthy and difficult one, with the district beginning the process with a $3 million operating shortfall.
"We have put a lot of hours into this," said Sutherland. "In the big picture I think we did a good job. We can do a better job next year."Exactly how it can be done better is another point of contention, with most of council expressing disappointment with the budget process this year.
"I'll say that we're doing the budget the wrong way, and we're guiding staff the wrong way," said Sutherland. "If we were doing this in a more productive way we'd be looking more at the big picture."At the next council meeting I'm going to suggest that sometime in September council would come up with a target budget that would reflect an increase of X per cent, tell staff what our priorities are and send staff away to do it. We can't go back after all that is done and try to do it line by line.""We're there for overall guidance, not line by line micromanaging," agreed Coun. Jeff McKenzie.However, some councillors feel that a line by line accounting of the budget is the only way they can ensure that the public's money is being effectively spent."I thin that there are some places that, yes, we have to look at it line by line," said Lonsdale. "There are some expenses here that we just might not be comfortable with and we can't just give them the ok without looking at them."This year's budget, which will see the district spend a total of $30.4 million, will be brought before council on Tuesday (May 1) for first, second and third readings. The final budget document will then be brought forth for approval the following week on May 8.
