West Kelowna residents are catching a break in the proposed municipal tax increase thanks to the negotiating skills of local finance department officials.
Instead of the previously announced three per cent proposed increase for this year, a 2.24 per cent hike will be levied as a result of a reduction in the transit tax requisition West Kelowna pays as its share of regional transit costs.
After a review of the formula used to determine the municipality’s share , it was found the municipality was paying nearly $188,000 too much.
According to Finance director Jim Zaffino, municipal staff were successful in arguing that the requisition amount was too high and $163,000 collected last year was now available to council.
Council voted to use that money to help offset the proposed tax increase for this year, arguing that such a move was fitting because it was money that amounted to over taxation in light of the change.
The district’s 2011-2015 financial plan, which includes its budget for the coming year, will be adopted April 26.