By Don Urquhart, Times Chronicle
Osoyoos will join many other municipalities in the province which separate utilities from property tax after council voted four to one on the move.
Currently water, sewer, and garbage user fees are included on the property tax bill for the Town of Osoyoos.
This has the effect of making the annual tax bill appear larger than it would if user fees were separated out and in the case of tax hikes to cover crumbling infrastructure served to exaggerate the pure tax number.
The issue was brought formally to the forefront at the March 12, 2024 Special Open Meeting of Council in which town staff was directed to bring a report to Council on separating the items.
While councilors expressed the preference to have this change implemented sooner than later, the need to have tax notifications sent out to residents in about three weeks time means it will need to be delayed. Property taxes generally have been mailed out at the end of the third week in May.
Jim Zakall, Director of Finance/ Deputy CAO recommended the change be adopted for January 1, 2025.
Councillor Johnny Cheong (who voted against the 2025 start date) asked if the change could be feasibly done in 2024. “It can be done, however . . . we’re really pushing the envelope on that,” he said adding that the water and sewer bylaws have to be changed to represent the semi-annual billings.
“The one main issue is that it will take time to set up the utility database and update both the property tax and utility accounts to reflect the appropriate charges to each of their accounts,” Zakall said in his presentation at the regular open meeting of council on April 23.
He added there will be a one time set up cost from the software provider to establish the utility billing accounts, which is $3,920.
There are a total of 9,767 entries from property taxes and 37 entries from accounts receivable and it will require about three weeks of staff time from the finance department to ensure all accounts are set up correctly, he added.
Zakall also noted that if council was considering the transaction for 2025, utilities could be billed out on a quarterly or semi-annual basis. Once metered billings are ready to move forward, monthly billing may also be an option when a new rate structure is developed. There are currently 424 property owners set up on the pre-authorized payment plan.
Mayor Sue McKortoff noted that residents can come to town hall to pay water and sewer and taxes at any time in advance of the deadline. They can also raise or lower the monthly amount at any time. According to Zakall those who prepay earn 5.7 per cent interest on the amount they prepay. “It’s a decent rate of return,” he observed.
He also noted that In discussions with the Town of Oliver their utility billing system is set up to bill out to owners on a quarterly basis.
Zakall said the town’s Water Regulations and Rates Amendment Bylaw 1388.01, 2024 and Osoyoos Water District Rates and Regulations Amendment Bylaw 1357.06, 2024 have both been sent to the Inspector of Municipalities for approval.
Administration has received confirmation that the Ministry that they have received the two Bylaws for review and that their normal turnaround time is 6-8 weeks, which put those dates between May 7 and 21. Property tax notifications will be sent out once approval comes in.
