The City of Revelstoke is proposing three different property tax increase amounts for 2023 in its draft budget: three, four or five per cent. The public has until March 15 to give feedback on the budget.
Taxes makes up the majority of the city's revenue. This year the city's operating budget is $35.9 million and its projected revenues are $36.3 million.
Property taxes pay for the general operation of the city, so things like wages, supplies and leases. Anything left after that goes into reserve, which is like a savings account for capital projects. These include things like general paving, road work, and major projects.
The more money the city has saved, the less it has to go into debt, which saves taxpayers on interest payments down the road.
"That is why we have the four and five per cent scenarios," said Sheanna Moore, the city's interim director of finance. "You could spend approximately $19 to $38 per year to help put money aside ... to pay for these projects in the future."
Based on $708,893, the average 2022 assessed home value in Revelstoke, a three per cent property tax increase would be $57 more than last year. The city estimates that after paying for its operating costs, $57,400 would be leftover for reserves with this increase.
A four per cent increase would cost property owners $76 more than last year based on the average assessed home price in Revelstoke in 2022. This scenario would leave $192,300 leftover for its reserve.
A five per cent increase would cost $95 more than last year. It would leave $327,200 leftover for its reserve.
These calculations are laid out in a budget overview.
Some big projects that will be going ahead this year and next which are budgeted for with a three per cent property tax increase include updating the streets and sidewalks around Columbia Park and Arrow Heights elementary schools to make them safer; general paving maintenance, and traffic calming on Fourth Ave.
A looming project that isn't accounted for in this draft budget is updating or replacing the Revelstoke Forum and Curling Club.
"I think most of the community is aware that the roof on the current arena is slowly failing and will need to be addressed," Moore said.
The city estimates it will cost between $20 million to $70 million to update or replace the arena, but it wants more information from the public before making a plan.
Council approved on Feb. 14 $160,000 to be included in this budget to make a communications plan around updating the arena, and for "architectural renderings, engineering work and associated design work," according to a report to council.
Utilities
Along with property tax increases, council also has to approve utility rate increases. City utilities are garbage, sewer, water and Big Eddy water. Rates collected go towards running the utilities and upgrading or replacing them.
The city is requesting a 15 per cent increase in 2023 for Big Eddy water users. That's to save up for a pipe replacement project planned for 2029. Moore said the rates the city is charging Big Eddy water users now isn't putting enough into reserves to save for a project.
After this increase, the city is budgeting a five per cent increase for Big Eddy water users in 2024.
The city is requesting a 20 per cent increase for residents connected to the sewer system. That's going towards replacing the wastewater treatment plant, a project that is supposed to start this year and be finished next year.
In 2022 the city increased sewer utility rates 30 per cent to go towards this. Next year it projects the rate will drop down to a five per cent increase.
The city is requesting garbage fees go up four per cent, and water other than the Big Eddy go up five per cent.
City staff presented the budget to council on Feb. 14. The public comment period opened on Feb. 28 and runs to March 15. Staff will present feedback from the public to council after that time, and council will ultimately choose and approve tax hike amounts.
Listen to the story below: