An increase of 2.5 per cent in municipal taxation could mean a decrease in property taxes for the average single-family home, despite an increase in home assessments, according to preliminary budget data for the District of Clearwater.
A public consultation was held Thursday (Feb. 24) evening at the Dutch Lake Community Centre to present the 2022 budget so far, including capital and operating projects, as well as a proposed increase in municipal taxation. District staff answered questions from the public, and those who did not attend are welcome to provide feedback or ask questions by email, telephone or in person until March 3.
The budget includes over $4.9 million in capital projects, though $2.7 million will be covered by grant funding, including three trails projects and council chamber audio/visual upgrades. The remaining balance would be paid for through taxation and reserves. Projects funded through taxation include the public works yard expansion, water meters and bear proof garbage containers.
During the regular council meeting on Feb. 15, council discussed a potential increase to amount of municipal taxation, with the extra funds allocated to reserves. Council directed staff to calculate how a 2.5 per cent increase, or an additional $122,198, in taxation would affect the average household.
Ultimately, the property tax for the average household could drop, according to calculations based on initial numbers from BC Assessment. Staff did advise that the number could change when BC Assessment releases updated final data in March.
READ MORE: Capital projects, reserves discussed in District of Clearwater budget talks
The tax rate per $1,000 of assessed property value in 2021 for a single-family home was roughly 5.05, meaning the average household paid $1,301.27 in property taxes. The proposed tax rate per $1,000 for the 2022 budget drops to roughly 3.67, lowering the amount paid in property taxes by the average household to $1,292.03 — a difference of $9.24 — even though some homeowners saw an increase in assessment values of 30 to 40 per cent.
There are many factors that can change the tax rate per $1,000, including growth of a community — the larger the growth, the more households to share the tax burden. Clearwater saw growth of about 1.43 per cent.
The District of Clearwater is looking for public feedback on the proposed 2022 budget, capital and operational projects and the proposed 2.5 per cent increase in municipal taxation. All feedback will be brought to council to consider in finalizing the 2022 budget.
To provide input or ask questions, email the DOC at dog@docbc.ca, visit in person at the Dutch Lake Community Centre, mail your response to the DLCC or call the director of finance at 250-674-2257.
The presentation and documentation will be on the district website until March 3.
Budget documents can be found on the district website and the public consultation can be viewed online.
newsroom@clearwatertimes.com
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