Town of Osoyoos council will continue its policy of keeping annual property tax increases in line with the rate of inflation and has officially announced a target to increase property taxes by 1.99 per cent in 2017.
User fees for garbage, recycling, sewer and water are also expected to increase marginally in 2017, said Zakall.
During an open meeting Monday night in council chambers that was attended by about two dozen local residents, Jim Zakall, the town’s director of financial services, made a brief presentation about the proposed 2017 operating budget for the Town of Osoyoos.
Barry Romanko, the town’s Chief Administrative Officer, also highlighted council and staff’s commitment to planning and following its five-year capital/project plan.
Mayor Sue McKortoff said the projected 1.99 per cent property tax increase is the goal, but noted things could change marginally over the next two months as council and staff move through the process of finalizing all items in the draft budget.
“The budget is being presented to council with a 1.99 per cent increase to property taxes,” said Zakall. “This is an increase of $46,281 in tax based revenue and new construction property taxation is $40,545.”
The proposed budget will provide an additional $10,000 – increasing the total to $70,000 in 2017 – or a .43 per cent increase in grant in aid funding to community groups and agencies, he said.
The remainder of the money raised from the proposed property tax increase (1.56 per cent) will be used to offset increases in net operating costs, said Zakall.
Local taxpayers will begin debt payments for the new fire hall as borrowing from the provincial government will begin in the spring of 2017, he said.
“This will be paid for by the Town of Osoyoos, Osoyoos Rural Fire Protection District and the Osoyoos Indian Band,” he said.
Salaries and wages for town employees will increase by $179,000 under provisions of the collective agreement, he said.
Janitorial services for town hall, parks washrooms and employees at the landfill weigh scale are all members of the Canadian Union of Public Employees, he said.
Garbage and recycling fees are proposed to increase 2.5 per cent from $130.10 annually for a single-family property owner from $126.93, said Zakall.
Sewer rates are proposed to increase by $3.57 in 2017 for a single-family residence. The annual cost will increase to $241.44 (1.5 per cent) in the Town and $334.44 (1.08 per cent) in Electoral Area A. This would provide a $20,400 increase in revenues and is needed to maintain the same level of funding available for capital projects, said Zakall.
Water rates are proposed to increase by $1.54 annual for a single-family residence to $335.54 in 2017. This will provide $7,000 in extra revenue and is needed to increase the funding available for capital projects. The water fees for a Town property is comprised of the user fee of $335.54 plus a parcel tax of $60, he said.
Water district rates are proposed to increase by $11.52 in 2017 for a single-family residence to $395.52 and three per cent to other water district rates, including irrigation rates. This is a $15,800 increase in revenues and is needed to increase the funding available for capital projects.
Significant operating expenditure increases/decreases proposed in the 2017 budget include:
- Wage and benefits for employees increasing by $179,000 to $3,330,250.
- Council stipend increasing by $7,630.
- Increase to auditing costs of $2,580.
- Insurance costs increasing by $9,590.
- Grant in Aid funding increasing by $10,000 to $70,000.
- Fire Department operating costs increasing by $5,050.
- Development service increases of $6,370 for enhanced advertising and salaries.
- An increase of $31,000 in 2017 for the Osoyoos landfill budget with CUPE employees taking over operation of the weigh scale.
- Increase of $45,750 to account for increased cleaning for parks washrooms.
- Debt charges have increased by $303,083 to account for repayment of borrowing for the fire hall construction project.
- General operating expenditures, less transfers to other governments, transfers to reserves, resort municipality funding, contingencies and capital project expenditures is projected to increase by just under $400,000 to $5,378,263, or eight per cent, in 2017.
Sewer operating expenditures, less transfers to reserves, contingencies and capital project expenditures, are projected to increase by $30,000 to $1,225,855 in 2017, a 2.52 per cent increase.
Water operating expenditures, less transfers to reserves, contingencies and capital project expenditures, are projected to increase by $8,500 to $1,688,825 in 2017, a .51 per cent increase.
Zakall said the budget document is prepared each year using several basic framework principles.
They include ensuring service levels in all operations and facilities are cost effective and meeting the expectations of residents and visitors and the projects identified by council and department directors are completed.
It’s also a priority to identify sufficient contingencies to respond to emergencies and unforeseen expenditures and adjust capital expenditures to maintain the current levels of service, he said.
The goal to maintain property tax increases to the cost of living remains in place with the current town council, he said.
Reserve funds have also been established to provide funding when the Osoyoos Museum relocates in three years and to establish a Waste/Recycling Initiative Reserve Fund to lessen the impact for transitioning to a new bin collection system as well as establishing a Water Metering Reserve fund to lessen the impact should the Town move toward water metering.
Municipal property taxes in 2017 are projected to raise 9.35 per cent of total revenue or just under $2.29 million..
User fees are projected to provide $3.35 million or 13.6 per cent of total revenues, while borrowing for the new fire hall, which will be repaid over 20 years, is just under $6 million or 24.33 per cent of total revenue.
Transfers and funding from senior levels of government provide $4.24 million in revenue or 17.3 per cent of total revenues.
The total projected Town budget for 2017 is $24,502,154.
Local citizens can view the entire 223-page 2017 projected Town budget online at www.osoyoos.ca.
KEITH LACEY
Osoyoos Times
