The new Osoyoos town council has kept the property tax increase below two per cent. That is about the same rate of increase that property owners had to pay last year. Water and sewer fees should increase marginally. (Richard McGuire photo)
Homeowners in Osoyoos will be facing an almost identical increase in their property taxes in 2015 as the one approved last year as Town of Osoyoos council unanimously approved a 1.82 per cent increase.
Council tentatively approved its five-year financial plan and gave first, second and third reading of the bylaw that will be finalized in the next few weeks.
For an average single-family residence assessed at roughly $370,000 taxes will increase by $10.96 to $613.41, up from $602.45 in 2014.
The 1.82 per cent property tax increase will add an additional $43,950 into town coffers, with $10,000 of that money, or 0.42 per cent going to the new Osoyoos Museum reserve and the other 1.40 per cent to be used to offset an increase in net operating costs.
“The Community Charter requires municipalities to prepare a financial plan for a period of five years, which is adopted annually by bylaw,” said Jim Zakall, the town’s director of financial services. “The charter also requires council to undertake a process of public consultation regarding the proposed financial plan before it is adopted.
“As a special open budget meeting on Jan. 12, council sought input from the community for considerations for the budget. Council reviewed the requests made from Jan. 12 and reviewed the budget at special open budget meetings on Feb. 10 and 11 and provided direction to staff.
Salaries and wages for 2015 will increase by $81,830 and includes the addition of one new full-time employee in developmental services, said Zakall.
Besides the slight property tax increase, there will also be slight increases in user fees for garbage and recycling, sewer and water rates, he said.
Garbage and recycling fees are proposed to increase $2 per month from $122 to $124.44. This increase is related to the transportation consumer price index (TCPI) increase to the town’s garbage and recycling collection contract and tipping fee increase in 2015, said Zakall.
Tipping fees proposed to be increased to the town’s landfill in 2015 will rise from $82 per tonne to $95. Currently the RDOS landfills charge a rate of $95 and many people were driving to Osoyoos to take advantage of the lower rates, he said.
“We are experiencing larger companies landfill shopping due to our lower than average rates,” he said. “In addition, we are still experiencing lower than expected revenues at our landfill, but with the increase in tipping fees, this will assist in reaching our revenue target. If we bring in more than budgeted, we would be able to set the additional funds away to assist with post closure costs.”
Sewer rates are proposed to increase by $4.53 annually for a single-family residence. The annual cost for a single-family residence will increase to $231.01 in the town and $324.01 in Area A of the RDOS. This will provide a $24,500 increase in revenues to the town and will be used to maintain the same level of funding available for capital projects, said Zakall.
Water rates are proposed to increase by $7 annually for a single-family residence to $314 and 2.28 per cent to other water rates. This will provide a $31,000 increase in revenues that will be needed to increase the funding available for capital projects, he said.
The water district rates are proposed to increase by $8 annually for a single-family residence to $364 and 2.25 per cent to other water district rates. This will provide an increase in revenues of $11,200, which will be needed to increase the funding available for capital projects.
Some significant operating expenditure increases/decreases that council has tentatively approved include:
- Wages and benefits increasing by $81,830 to $3,193,620.
- Operations director recruitment to replace Ron Doucette, who is retiring later this year, at a cost of $15,700.
- Negotiator to be hired to assist with union negotiations will cost $10,000 in 2015 on top of the $4,000 not spent in the 2014 budget.
- Community development. This budget will decrease by $12,000 in 2015 as the town’s economic development component is being contracted to Destination Osoyoos.
- Community services budget will increase by $19,420, the majority for wages, but $3,900 of that total to increase equipment repairs and maintenance.
General operating expenses less transfers to other governments, transfers to reserves, resort municipality funding and contingencies and capital project expenditures will increase by just under $200,000 to $4,866,460 for 2015, or an increase of 4.27 per cent.
Sewer operating expenditures less transfers to reserves, contingencies and capital project expenditures will increase by $27,000 to $1,156 for 2015, an increase of 2.32 per cent.
Water operating expenditures less transfers to reserves, contingencies and capital project expenditures will increase by $33,300 to $1,566,430, an increase of 2.7 per cent.
General operating funds available for capital project expenditures in 2015 is $475,000, down from $549,000 in 2014. Sewer operating funds available for capital projects in 2015 are $455,000, up from $448,000 in 2014. Water operating funds available for capital projects in 2015 are $560,000, up from $498,000 in 2014.
Mayor Sue McKortoff and members of council praised Zakall and other senior administration members for putting together a budget that will allow for several major infrastructure projects to be completed, while keeping property tax and user fees increases at a very reasonable level.
“Thank you for all of the work that you have put in,” she said.
Count. C. J. Rhodes echoed the same thoughts.
“This is a very fair and reasonable report and the information in it is definitely good news,” said Rhodes.
Osoyoos continues to have one of the lowest tax rates for any community in B.C. with a population of under 5,000 and he doesn’t foresee many local property owners complaining about the proposed property tax and user fee increases, said Rhodes.
Council is expected to officially pass the 2015 budget in late March or early April and local homeowners will receive their tax bills in early summer.
KEITH LACEY
Osoyoos Times
