With the big City of Trail projects now wrapped up - except one that may be coming down the pike - council has settled on a 3.5 per cent property tax increase this year.
This could still vary, but it likely won’t change much at this point.
That’s because unlike the past four years when multi-million dollar builds like the Skywalk and new library/museum were front and centre - that rate generally started at six per cent or higher this early in budget talks.
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“Last year the level of property tax increase was significantly higher primarily attributed to the new infrastructure that included additional debenture debt payments as well as providing funding for the operations,” explained Chief Administrative Officer David Perehudoff.
The budget for 2019 has “normalized” in that the city doesn’t have any other major new projects coming online this year.
“The establishment of the net tax levy (3.5 per cent) and what council deems to be an acceptable level of increase provides certainty,” Perehudoff said. “And will allow for budget adjustment to occur understanding that the increase in the budget has effectively been capped.”
Even if a certain million-dollar priority does begin this year, which would be planning a secondary road to the hospital, Perehudoff says the 2019 budget will not be affected.
“Council has identified the second access road to KBRH (Kootenay Boundary Regional Hospital) as a strategic priority,” he clarified. “And should this project advance and be funded via a long term debenture, the cost for the debt servicing costs will be reflected in a future budget.”
In a nutshell, a 3.5 per cent property tax increase translates to a hike of $49 for the average homeowner.
In other words, the average residential homeowner ($217,690) will pay $1289 this year compared to $1240 in 2018.
That’s if council sits firm on keeping the $260 flat tax for a fourth straight year and maintains the 61.33 per cent tax rate for major industry.
“The 2019 budget reflects council’s commitment to maintain the operational excellence in our many facilities that our citizens have come to expect and enjoy,” Mayor Lisa Pasin told the Trail Times.
“As well as address core infrastructure improvements not only our facilities, but also in our broader infrastructure.”
Notably, preliminary funding to support strategic priorities such as renewal of the Official Community Plan and the second access road to KBRH was confirmed, she said.
“Council will work diligently over the next months to finalize each component of the budget to ensure taxation dollars are invested across all departments in support of the highest priority initiatives.”
Pasin also confirmed that the city’s Major Industrial Property Taxation Committee (MIPTC) is planning to meet with Teck representatives in early spring.
“The MIPTC was designed to facilitate continued, meaningful dialogue between the City of Trail and our major industry partner, Teck,” she said. “Meetings will commence in March to discuss the city’s budget, property tax rates, existing operations and emerging initiatives for both organizations.”
Major industry currently pays 61.33 per cent or approximately $8.65 million of the City of Trail’s annual property tax levy for municipal services.
newsroom@trailtimes.ca
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