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A recent budget meeting saw Oliver council agree in principle to a 1.5 per cent tax increase in 2014.
But at least one councillor wants to see that lowered to one per cent, if not to zero.
Dave Mattes said the budget hasn’t received first reading yet, and there is still more money on the table to work with.
Mattes voted against the 1.5 per cent tax increase in the first round of discussions.
“I’m still hoping to get it down to one per cent (which represents $4 more for the average household).”
Chief Financial Officer David Svetlichny said the draft budget showed a surplus of approximately $27,000. But he noted the general reserve account of approximately $175,400 is getting too low.
“Over a four-year period the general reserve account has gone from a healthy balance of $1.3 million to a projected 2014 balance of $175,000, a decrease of $1.14 million.”
Svetlichny said this type of reserve spending is unsustainable and is further hindered by a lack of current funding sources, the largest being general taxation.
Over the past few years the global economic climate has taken a substantial hit, which has also affected the Town of Oliver, Svetlichny said.
Construction in the area has dramatically decreased, which directly impacts the Town’s revenues in the way of building permits.
He also noted there has been a decrease in federal and provincial funding to municipalities.
“During these tough economic times council has been very conscious on keeping tax rate increases at a minimum, while at the same time continuing to deliver the same level of service to its residents.”
This was evident with a tax increase of 1.3 per cent in 2011 and 2.1 per cent in 2012. There was actually a tax decrease of 0.67 per cent in 2013.
“Although this is good for the residents, this does not bode well for the Town,” Svetlichny said.
He pointed out that a one per cent tax increase in the municipal rate represents approximately $11,600 in tax revenue.
Council approved about a dozen capital projects for 2014, including:
– CPR station upgrades to windows and doors ($52,000)
– Single axel dump truck purchase ($165,000)
– East riverside walkway paving ($103,200)
– Highway 97 lighting to Southwinds ($11,000)
– Downtown trash can replacement ($8,500)
– School Avenue crosswalk ($38,000)
– Gala/School Avenue sidewalk extension ($15,000)
– Airport power conduit extension
– Airport taxiway to runway ($7,500)
– Tree root damage in Tucelnuit area ($8,000)
– Concrete strips in veterans section of
cemetery ($20,000)
The following projects are being considered in 2015 and beyond: a new roof for the Community Services Building; downtown street light retrofits; Veterans/Station Street intersection upgrade; and Bank/Kootenay Street pedestrian island.
Mayor Ron Hovanes said council worked very hard to pair down the 2014 draft budget to a position they felt was acceptable.
“With capital commitments, equipment replacement, a new public works position and a commitment to partner with Area C to fund the initial year of the operation of Venables Theatre, a 1.5 per cent increase is very reasonable.”
Lyonel Doherty
Oliver Chronicle
