While the final figures have not been set in stone, Town of Osoyoos council has made the historic decision to pursue a zero per cent property tax increase for residential property owners.
Mayor Stu Wells made the announcement at the end of Monday’s regular meeting of town council.
“We’re heading for a zero tax hike in the budget,” said Wells.
While taxes will go up for some property owners, based on the provincial assessment of their property, council’s goal is to keep any millrate increase to residential homeowners at zero, said Wells.
There will be an “automatic” $13,000 increase on user fees for minor water, sewer and garbage rates as mandated in the town’s long-term financing, but those homeowners whose assessment has not increased significantly will be looking at paying the same property taxes in 2012 as they did last year, said Wells.
“If your assessment is average, there won’t be any increase,” he said. “If your assessment has gone up significantly, then there could be some changes.”
The user fee increases to water, sewer and garbage pickup fees will average about $15 per household, but those are not part of the property tax process during budget deliberations, he said.
“We’re aiming at as close to zero changes on your taxes as we possibly can,” he said. “I’m very, very excited. I’ve never had the opportunity to say this before (zero tax increase) and it’s so exciting to be this close.”
During two days of budget deliberations last week, staff and council made it clear early on they wanted to keep any tax increase as close to zero as possible, said Wells.
Once all town directors presented a wish list and individual budgets, it was clear the target of not increasing property taxes at the town level was attainable, said Wells.
“We certainly feel very good where we are right now,” said Wells, saying councillors still have plenty of work ahead over the next month before the final 2012 budget is brought before council for final approval.
Council has also decided to hold a municipal referendum in October on whether or not to construct a new fire hall, which delayed financial considerations on this issue until the 2013 budget process, said Wells.
As a rookie councillor, Mike Plante said he thoroughly enjoyed the budget process last week and is proud of how council and staff worked together.
The town has a five-year business plan in place and administration did a terrific job explaining how the business plan works and how budget deliberations play a significant role in moving the plan forward, he said.
Council is expected to pass the 2012 budget by late March or early April.