The average homeowner should expect a tax increase this year, but local leaders are not to blame; the increase comes thanks to a provincially set tax rate for school funding.
The District of 樱桃视频(DOS) is in the process of passing what it describes as a zero per cent tax increase budget. This means the mythical average 樱桃视频home, valued at $312,808 will pay the DOS about the same amount of tax paid last year. But the amount going to the school system will go up.
The DOS adjusted the tax rate per thousand dollars of value down to approximately $3.31 from approximately $3.95 last year. A significant drop in the rate was needed to counteract the large increase in most property assessments.
The adjustment in the school tax rate this year is also coming down - but not nearly enough to counteract the increased property assessments. The school tax rate is set by the provincial government.
The school tax rate last year was approximately $2.35 per thousand dollars of assessed residential property value. The rate for the current taxation year is approximately $2.13 per thousand dollars of assessed value. That represents an eight per cent increase over last year for the average assessed home.
Overall the combined school and municipal bill for the average home will be go up two per cent this year.
Every year the DOS publishes a list of sample homes and businesses showing how much each is paying to the DOS. This year, the list indicates eight out of the nine sample residential properties are going to pay less to the DOS this year than last year. Sonja Lebans, for example, is going to pay about 10 per cent less.
The only home on the list paying more to the DOS was an apartment at Diamond Head Place assessed at $172,400. The owner of the apartment will see an increase of eight per cent in taxes going to the DOS this year.
The DOS tax rates for properties owned by businesses were also adjusted down to work against increased property assessments. The rate per thousand dollars of assessed value last year was approximately $12.58 and this year that rate was pushed down to approximately $9.35.
Major industry and utilities are both being hit with rate increases.
Western Pulp Partnership continues to be the largest single tax contributor to the DOS with a tax bill of more than $1.99 million. Last year the mill paid $1.97 million.
Interfor's tax payment to the DOS is down drastically this year due to the inactivity at the company's mill site. The company's tax payment to the DOS in 2004 for the mill property and its lands on Loggers Lane was more than $400,000. This year the figure is closer to $48,000.
For the second year in a row Coun. Corinne Lonsdale opposed the proposed DOS budget.
Lonsdale said she is opposed because it will lead to further depletion of reserve funds and the budget calls for much-needed repaving work to be paid for through borrowing.
Mayor Ian Sutherland said he is sure the DOS won't have to borrow to pay for the paving and he said it shows as a borrowing item in case some expected payments don't come through.
"We've come up with a document I'm personally proud of," Sutherland said of the $50.9-million plan.Coun. Jeff Dawson agreed with Sutherland.
"This is an excellent document," Dawson said. "It is an honest budget that we should be proud of."Coun. Ray Peters said the spending plan is good for outdoor recreation.
Coun. Dave Fenn defended the decision to borrow money by pointing out Squamish's debt repayment ratio is reasonable compared to other communities.
"We are leaving some more money in the pockets of the people," said Coun. Sonja Lebans. "Not a lot of money but a bit."
Lonsdale called the spending plan an election budget and she said she's concerned about the 2006 budget, which will be the first budget in the next mandate.
She told the other council members she worries the tax contribution from the pulp mill might be lost in the future.
Coun. Raj Kahlon was critical of the budget but he decided to vote in favour of first and second reading.
There are a number of new and increased revenue sources in the 2005 budget. The provincial government's unconditional grant this year is $294,524 and new money is coming to 樱桃视频from the province in the form of traffic fine revenue sharing.
The federal government's New Deal for Municipalities is expected to bring $1,227,797 in new funding for 樱桃视频over the next five years through gas tax sharing.
The DOS budget has to be finalized by May 15.
