After weeks of lively 2013 budget discussion, this week the District of Squamish council fell quiet as officials passed a 10.1 per cent effective property tax increase for this year.
Although the process still has to go through an open public house and receive council's final approval, it was a big step toward cementing 2013 taxation. Based on last year's property assessments, the combined effective property tax and utility-rate increases amount to approximately $327 for the average single-family dwelling.
I think we've had a tough slug through this, Mayor Rob Kirkham said on Tuesday (March 26). I think in the end it is a budget that is recognizing where we are at in this community. That we have a pretty high level of expectation for service.
Out of the gate, officials faced a 12.1 per cent jump. A large chunk of the bill $3.9 million went toward policing. The district's population growth pushed it into a payment bracket in which the municipality is required to foot 90 per cent of the total contract 30 per cent more than 2012. Squamish's RCMP cost hike was anticipated, with a municipal contingency fund in place.
The district also faced $1 million worth of special projects, said Joanne Greenlees, the district's manager of finance. The budget funded almost half of those from accumulated surplus.
We already have $1 million worth of projects for 2014, Greenlees said.
As such, the district can't continue to fund a level of service by dipping into its piggy bank each year, she said. It's not sustainable if the municipality wasn't raising revenue or willing to reduce the level of activity, Greenlees noted.
To remediate the situation, council backed Greenlees's recommendation to pay for $111,000 of operating rehabilitation and replacement projects, initially charged to reserves, from taxes. The same went for the Downtown Revitalization Program and Mamquam Blind Channel dredging two major charges originally to be paid for from savings.
This moved the effective property tax increase in 2013 from 8.3 per cent to 10.1 per cent, but it dropped next year's jump from 12.6 per cent to 10.7 per cent, with increases in the following years dropping 2.5 to 3 per cent over the life of the five-year plan. On average, the plan calls for a 5 per cent increase over its timeframe.
The budget represents fiscal responsibility, Greenlees told The Chief. The district is putting funding away for its infrastructure renewal program. It also acknowledges the service level Squamish residents expect and raises taxes to meet them rather than dipping into savings, she said.
Coun. Ron Sander wasn't happy with the jump. It amounts to almost 22 per cent over the next two years, he pointed out. In the future, Sander said he'd like to see council set a budget target and have officials work toward it.
Most of the projects the 2013 budget funds are initiatives that have been continuously pushed back, Coun. Susan Chapelle said.
A public open house on the 2013 budget is planned on April 8. There will be a short presentation at 6 p.m. in council chambers, followed by time for questions.
