As predicted, local taxpayers will be hit hard due to the massive increase in policing costs resulting from the Town of Osoyoos’ population officially exceeding 5,000 following the latest Canadian census results announced earlier this spring.

Under provincial legislation, communities in British Columbia that exceed 5,000 in population must pay 70 per cent of policing costs, instead of the 30 per cent Osoyoos has been paying for many years.

As Jim Zakall, the town’s director of financial services revealed during a presentation to council to approve the first three readings of the town’s five-year financial plan and 2017 budget, the additional policing costs for this year (beginning April 1) are $715,000, up from $368,000 in 2016.

Policing costs will become more onerous for local taxpayers beginning in 2018 when they must cover 70 per cent of the costs over the full 12 months, instead of nine months in 2017.

The estimated annual RCMP costs will be $953,407, in which the town will become responsible … and will pay 75 per cent of these costs ($715,000 in 2017) … an increase from $367,566 paid in 2016,” said Zakall.

Staff had originally targeted a budget increase of 1.9 per cent for 2017, but that has been increased to 3.9 per cent as a direct result of increased policing costs, said Zakall.

The overall increase in municipal taxes for the owner of a single-family residence assessed at $350,000 in 2017 will be $577.11, an increase of $30 from 2016.

The additional policing costs to local property owners will increase to $170.47 per household, more than double last year’s cost of $83.41.

The cost to pay off the new town fire hall will be $13.63 per household.

Total municipal taxes, including fire protection, garbage-recycling, sewer and water rates will increase to $1,529.91, an increase of $138.45 from 2016, said Zakall.

Members of the public will have several days to voice input or concerns about the tentative 2017 budget before council officially approves it at their next meeting on May 15, said Zakall.

An increase of 1.75 per cent for wages and salaries of unionized town staff adds up to just under $180,000 in the 2017 budget, he said.

Work contracted out in the past is now being done by CUPE staff, including janitorial at civic buildings, parks washrooms and landfill scale house in addition to a senior accounting clerk position added in 2016.

Debt payments for the new town fire hall also started in 2017 as more than $6 million was borrowed from a provincial fund and must be repaid annually for the next 20 years by town taxpayers, Osoyoos Rural Fire Protection District residents and members of the Osoyoos Indian Band, said Zakall.

Besides the largest increase in property taxes in many years due to the increased policing costs, council unanimously approved marginal increases in user fees for sewer, water and garbage and recycling fees.

Garbage and recycling fees are set to increase 2.5 per cent to $130.10 from $126.93 for a single-family property owner.

Sewer rates are proposed to increase by 1.5 per cent or $3.57 to $241.44 in the town and $334.44 (1.06 per cent) in Area A of the RDOS. This will provide an increase of $20,400 in revenues needed to maintain the same level of funding available for sewer capital projects.

Water rates are proposed to increase by $1.54 annually to $335.54 (.46 per cent). This will generate $7,000 in revenues for funding of capital projects.

Increases to water district rates are $11.52 annually for a single-family residence to $395.52, which will generate $15,800 for capital projects.

Significant operating increases in 2017 include:

• Wage and benefit increase by $180,000 to $3.33 million,

• Council stipend increasing by $7,630.

• Insurance costs increasing by $9,590.

• Grants in aid funding increasing by $10,000.

• Increases in landfill operations by $31,000.

• An increase of $46,760 to account for increased cleaning for parks washrooms and reallocation of public works staff.

• Debt charges have increased by $80,400 to account for the borrowing for the fire hall.

General operating expenditures, less transfers to other levels of government, transfers to reserves, resort municipality funding and contingencies for capital projects are projected to increase by $907,205 to $5.88 million, said Zakall.

The town has budgeted just over $500,000 for capital projects in 2017, down only $4,000 from 2016 and just under $450,000 for sewer capital projects, also $4,000 less than in 2016.

Funding for water capital projects in 2017 will be just under $470,00, up from $449,000 in 2016.

Municipal taxes account for 12.9 per cent of the town’s $18.7 million budget.

Policing costs will increase to 3.81 per cent of the total budget and be even more when local taxpayers must pay for the whole year, instead of the nine months on the books for 2017.

User fees account for 18 per cent or $3.4 million, grants account for 29.6 per cent of $5.57 million and transfers from senior government account for 14.5 per cent or $2.7 million.

KEITH LACEY

Osoyoos Times