Council has agreed to a four per cent property tax hike for this year, up from what had been a planned 2.5 per cent in original budget documents but far lower than the double-digit increases being felt by taxpayers in other northwestern municipalities.
The agreement came at a special council meeting March 28 when first reading was given to a required financial plan bylaw and followed by second reading April 4.
Councillor Troy Reitsma moved the motion for the four per cent hike with Councillor Jonathan Van Barneveld acting as seconder. They were joined in voting in favour by Mayor Shane Brienen and Councillor Tom Stringfellow.
Opposed were Councillor Rebecca Hougen and Councillor Lisa Mueller. Councillor Tom Euverman was absent.
A third reading is planned for April 18 followed by adoption of the bylaw in plenty of time to meet a provincial deadline in May.
With first reading last week, budget documents have now been officially released for public comment for council consideration as the bylaw winds its way through approval stages.
The four per cent hike would see residential property taxes for municipal purposes of $1.611 million flowing to the district, up from $1.549 million this year. At 2.5 per cent, the increased residential taxation amount for municipal purposes would have been $1.588 million.
The four per cent hike ends councillors debating over several meetings whether a lower figure was appropriate or for one that was higher.
A first budget draft put to council was for a 2.5 per cent tax increase which had been the norm for the past several years.
And a motion back on Feb. 28 saw a recommendation for a four per cent hike defeated, with councillors Rebecca Hougen and Tom Euverman being in favour but with councillors Troy Reitsma and Jonathan Van Barneveld and Mayor Shane Brienen being opposed.
A financial analysis prepared by staffers indicated they believed a 5.5 per cent increased could be absorbed by the community, resulted in a $60 residential tax hike for a home valued at $300,000.
The document also cautioned that “even at four per cent, [that level of increase] may not be sufficient to keep up with future cost increases.”
In comments March 28, Reitsma accepted the idea of a four per cent bump, noting it was less than the current inflation rate of 6.5 per cent.
Van Barneveld worried that council would not be putting sufficient monies into reserves, advocating for a rate that would “keep the lights on and still put away money for projects.”
His preference was for a rate in the four per cent range.
Councillor Rebecca Hougen, who at earlier meetings was not opposed to four per cent, favoured the originally-scheduled hike of 2.5 per cent, saying that just because inflation was more than that, it did not necessarily mean council had to follow suit.
Councillor Tom Stringfellow, who participated virtually, came on board with Reitsma and Van Barneveld, saying the District has sufficient monies for projects thanks to grants.
There was no comment from Councillor Lisa Mueller and Councillor Tom Euverman was absent. At a previous meeting, Euverman suggested that given the economic impact of the Canfor mill closure, and the reserves the District does have, council could decide to freeze property taxes for this year.
Mayor Shane Brienen did not comment but in previous budget discussions said he did not want to put the District into the position of not having an increase not large enough to avoid falling behind in maintaining District properties and services.
The 2023 budget as set out in the bylaw, does not require the District to dip into its $1.65 million budget stabilization fund. But that could start to happen next year, a factor contingent upon Canfor’s decision, expected in June, to replace its current sawmill or not. A decision not to rebuild would then affect the District’s major industry property tax income.
As mandated by provincial legislation, the 2023 budget year is the first year of a five-year financial plan bylaw now given first and second reading. That plan calls for property tax increases of five per cent beginning in 2024 but council is free to change that next year when it prepares the budget for that year.
Compared to Houston’s four per cent, Telkwa taxpayers are looking at 13 per cent, Smithers council is reading an increase of 11.5 per cent while in Terrace, council is passing a bylaw calling for a 10.33 per cent increase. But no municipality is higher in the region than Prince Rupert where council has introduced an increase of 15.7 per cent.