First and second readings were given to the 2019 Castlegar Budget and Five Year Financial Plan on Monday. Before hand there was an open house with some members of the business community present. This year’s tax increase for commercial rate payers is 4.87%. Included is the new Infrastructure Investment Levy (IIL) which will be phased in over the next seven years, and will likely mean higher tax increases in the years to come as well. The cumulative impact was still an issue for councillor Sue Heaton-Sherstobitoff.
“If we’re having an open house and we want to have feedback, we heard it, but no one’s changing anything. To me that’s a disservice to our business community, because they are the bread and butter of our community. They employ our families and friends and we need to listen to them, for sure.”
Council chose not to revisit the budget and felt that many cuts have already been made to reduce unnecessary spending, but councillor Heaton-Sherstobitoff felt maybe the belt could have been tightened further.
“We really have to look at our capital program going forth and see if we can make cuts or just extend it longer. Seven years, that wasn’t what the business community asked, they asked us if we could extend it past ten years for the infrastructure levy.”
It’s a tough decision, according to Mayor Bruno Tassone.
“It’s not taken lightly. We had some real good discussion, we’ve had lots of comments. I think all in all, council is very supportive of the decision that they made.”
The residential increase is 4.89% which is expected to be approximately $53 for the average home and the increase for major industry is 5.7%. The IIL accounts for 2.52% of the increase, municipal inflation for 2% with the rest from new funding requests (0.27%) and operational requests (0.13%). Property taxes don’t all go to the City, however. 53% is levied on behalf of other levels of government, including 32% for school taxes, 17% for the regional district services such as the recreation complex and 4% is for the hospital district.
Some highlights in the proposed budget this year are:
- A new IT position
- Upgraded council chamber audio system and webcasting capabilities
- Design of Columbia Avenue Phase 2
- A storm and water utility replacement project at 5th Avenue and 2nd Street
- Airport land intersection
- Design of Millennium Park washroom and change room facility
