RDCK average tax increase projected at 11 to 12%

The Regional District of Central Kootenay says taxes could go up an average of 11 to 12 per cent this year, although the exact amount depends on where you live.

The range across the region is five to 24 per cent, with arena floor repairs at the Castlegar and District Community Complex worth an estimated $1.5 million driving the increase in that area.

Increases in fire protection service costs are also contributing to some of the more substantial increases, the RDCK said in a news release. Some of the change in taxation is also driven by shifts in assessment.

“Inflation and supply chain issues will continue to be a challenge in all services in 2023,” chief financial officer Yev Malloff said in the release.

“Prices on most goods and services that the RDCK purchases have increased substantially over the last three years and short term borrowing costs are also up significantly with an up to four per cent increase in annual interest rates.”

The budget includes staff salary increases of 4.4 per cent. Last week the board approved several new staff positions, although some of the positions come with the provision that they paid for by increases through user and permit fees rather than taxation.

Malloff said the RDCK continues to pursue opportunities to reduce purchase costs by taking advantage of local and provincial group procurement agreements.

In Castlegar, and neighbouring rural Areas I and J, rec commission chair Sue Heaton-Sherstobitoff told city council this week a home valued at $500,000 stands to see a tax increase of about $95, of which $60 will be contributed to a capital reserve to prepare for other issues over the next five years, including a roof replacement.

She said the reserve will raise $600,000 this year, and will increase by $100,000 each year until it hits $1 million.

“Things are falling apart,” she said. “Our rec centre has not been kept up to par and now its age is telling. We have to start funding it appropriately. We have a pretty good plan but we need to tax appropriately to get there.”

The current arena floor was installed in 1976 with a 40-year life expectancy, so it is already on borrowed time, she said.

Public budget meetings are planned as follows: