The City of Trail has announced there will be no increase in property taxes this year.
“In consideration of the significant impacts of COVID-19, we considered ways of reasonably reducing expenditures as part of providing taxation relief for home owners and businesses,” said David Perehudoff, Trail Chief Administrative Officer.
“Adjusting the budget to reflect no increase to property taxes, and extending the 2020 property tax deadline will ideally result in providing financial relief while the financial plan still maintains funding for the delivery of City services,” he said.
“The plan was also designed with the longer-term financial health of the city in mind.”
The Trail Times asked the city to clarify what owners of the average-valued home in Trail will pay this year.
“As far as the impact in the City of Trail property tax levy is concerned,” Perehudoff explained.
“An average residential property in 2020, with an assessed value of $230,062 (an increase in the assessed value of 5.68 per cent over last year), would see Trail municipal property taxes decline by $5 when comparing the city levy of $1,284 in 2020 to the 2019 levy of $1,289.”
Trail council approved the revised 2020 budget during the Governance and Operations Committee meeting held by video conference on Monday, April 14.
The revisions include a zero percent increase to property taxes, an extended property tax deadline of Monday, August 31, a reduction of capital project budgets amounting to just over $1 million, and operational budget decreases.
“There are broad financial implications that will impact the city now and in future years,” said Perehudoff.
“In order to provide the necessary and high level of services our residents have become accustomed to, we will need to continue to look at ways to manage costs while recovering financially from the impacts associated with the pandemic.”
Council had previously reviewed and approved the city’s 2020 Budget and Financial Plan as part of the annual budget review process prior to the significant impacts of the global pandemic.
This included a 5.95 per cent increase in the municipal tax levy to support the city’s ongoing operational costs with additional funding dedicated to longer-term capital as well as a significant contribution to a capital reserve, with all funding enhancement now being deferred.
A bylaw to officially establish an alternative municipal tax collection structure that sets a due date for 2020 property taxes of August 31, will come before council in the coming weeks.
Property owners can still expect their property tax bills around the third week of May, and payments can be made through online banking, or using the city’s online payment system.
Questions related to property taxes should be directed to 250.364.1262 or email@example.com.