Kelowna City Hall. (Michael Rodriguez - Capital News)

City of Kelowna proposing tax hike slash to 2.05%

The preliminary budget approved by council in December saw a tax increase of 4.15 per cent

The City of Kelowna is proposing slashing the tax increase by over half amid the COVID-19 pandemic.

City staff will present the 2020 financial plan to council on Monday, May 4. City staff’s recommendations suggest a decrease in the tax hike from the 4.15 per cent in the provisional budget approved in December, to 2.05 per cent. The proposed tax demand fell from $151.3 million to $148.8 million.

“Difficult decisions are being thoughtfully and methodically made to ensure we can weather this crisis as we simultaneously plan for economic recovery,” said Genelle Davidson, divisional director of financial services. “To reduce the taxation demand for the 2020 final budget, we propose ongoing and one-time cuts to base budgets, the elimination or delay of new positions and programs and the deferral of some capital projects.”

The reduction is predominantly due to capital and operating program reductions in response to the economic impacts related to the emergence of COVID-19, while also maintaining essential services, adhering to contract obligations, meeting previous year commitments and to accommodate growth.

A tax rate of 2.05 per cent means the owner of a single-family home with an average assessed value of $676,100 will pay $2,115, which is an increase of $43 for the municipal portion of their property taxes.

“This tax rate level is one of the lowest proposed rates in the region,” reads the report heading to council on Monday.

Usually, the city receives one-third of its operating costs from property taxes. The change would reduce that number to just 25 per cent. The majority of the city’s operating funds come from things such as reserves and surplus, fees and charges, and borrowing.

“Many things remain uncertain, but readiness, resiliency and recovery are our goals as we navigate this evolving economic landscape,” said Davidson. “We continue to be financially prudent and will adapt by monitoring, planning and making strategic decisions to help us meet the current and future needs of our community.”

Council will review staff’s recommendations on the final budget before its approval on Monday.

READ MORE: Illegal dumping on the rise in Kelowna amid pandemic: forest clean-up group

READ MORE: Short-term lane closures planned for some Kelowna roads next week

To report a typo, email:
newstips@kelownacapnews.com
.


@michaelrdrguez
michael.rodriguez@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Coronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Smoky skies clearing throughout B.C. Interior

Environment Canada expects “widespread” improvement for all affected areas by Sunday

Stranger in truck grabs boy walking home from school in Kelowna

The 11-year-old boy escaped the incident, RCMP are investigating

Okanagan group calls for inclusive COVID-19 recovery plan

RAMA Okanagan wants full immigration status as part of COVID-19 recovery

Peachland residents march for better forest management

The Peachland march was one of many like it across B.C.

Interior Health reports three additional COVID-19 cases in region

The number of cases in the region since the beginning of the pandemic are now at 492

3 new deaths due to COVID-19 in B.C., 139 new cases

B.C. confirms 40 ‘historic cases,’ as well

Supreme Court Justice Ruth Bader Ginsburg dies at 87

The court’s second female justice, died Friday at her home in Washington

‘This is a very difficult sentencing’; Judge delays Okanagan manslaughter trial to next week

The courts heard Friday that Bourque “did not intend to cause harm” but that her actions were “reckless”

Emaciated grizzly found dead on central B.C. coast as low salmon count sparks concern

Grizzly was found on Gwa’sala-‘Nakwaxda’xw territory in Smith Inlet, 60K north of Port Hardy

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

VIDEO: B.C. to launch mouth-rinse COVID-19 test for kids

Test involves swishing and gargling saline in mouth and no deep-nasal swab

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

B.C. teachers file Labour Relations Board application over COVID-19 classroom concerns

The application comes as B.C.’s second week of the new school year comes to a close

CHARTS: Beyond Metro Vancouver, COVID-19 cases in B.C. haven’t increased much recently

COVID-19 case counts outside of Metro Vancouver have been level since July

Most Read