If the Town of Osoyoos’s 2009 budget is approved, residents will only see a 1.64 per cent tax increase this year.
Osoyoos town council gave first, second and third reading to a draft five-year financial plan on April 6 that includes a preliminary budget.
The budget also includes a $4 increase to garbage and recycling collection fees, a $4 increase to residential sewer user fees and a $15 increase to residential water user fees.
The breakdown for an average Osoyoos residence assessed at $352,592 will be an $8.88 increase in municipal taxes from last year to a total of $550.63 in 2009.
For an average business in town assessed at $363,555, the amount of municipal taxes it pays will go up to $837.16 this year compared to $823.67 in 2008.
Jim Zakall, the Town’s finance director, said Town staff were able to keep the tax requisition increase to less than two per cent thanks to tax dollars from new construction projects in town, increases in grants from other levels of government and growth in the number of sewer, water and garbage service users.
More than $18.5 million has been put aside for capital projects this year including the development of the recently purchased Richter property near the intersection of Hwy. 97 and 74th Avenue, road improvements for the north end of Spartan Drive near the Lake Osoyoos Sailing Club and the development of the lagoon neighbouring the club for a marina.
Cash is also earmarked for the first phase of a water twinning project on the northwest side of Osoyoos Lake and for taking the first steps in getting the planned Northwest Sewer Project underway.
Project one is the south part of the sewer project,  Zakall said. We’re still trying to get all the financing in place to move that forward.
Project two is the north end of Osoyoos Lake.
Salaries and wages make up the most significant part of this years operating increases at $260,300 or more than 48 per cent.
Last year, three new Town staff positions were created including deputy corporate officer, planning technician and a third part-time program assistant for the Sonora Community Centre.
The trio of new positions represent $170,431 of the operating increase.
A few other significant increases to the Town’s operating costs include $64,000 for the upcoming Southern Interior Local Government Association convention hosted by Osoyoos, $51,442 for fire protection, $50,000 for water pump maintenance, $42,300 for recycling and processing fees and $14,400 for snow removal.
Wells said even though the tax increase for 2009 is a small one, there are only a few local projects that will have to be scrapped this year.
“There were a couple of maintenance projects that we deferred,” he said, adding that a plan to paint the Sonora Community Centre has been abandoned.
The public will have a chance to comment on the proposed budget at council’s next meeting on April 20 and the budget must be adopted by May 20.

By Karen Knelsen and Paul Everest
Osoyoos Times