While council has gone through the budget once already, at the April 16 budget meeting, they were given the proposed tax rates for 2024, which would see 13.5 percent added across the board to every category of taxes.
According to budget specialist Michael McPhail, who is helping the district with this year’s taxes due to the fact that current CFO Natalie Wehner is on long-term medical leave, the current capital and operating budget result in a $1,335,151.50 deficit. “In order to balance the budget in its current state, a 13.5 percent rate increase across all tax classifications would be required,” writes McPhail in a report to council.
He suggested that council revisit the budget as it has currently been approved and look for places where it could cut.
Where it cannot cut is in increases to employee wages after the District agreed to a 26.7 percent increase in employee wages and benefits over the next four years.
That’s one of the things driving the increased budget for 2024, as well as increases in costs across the board on supplies and materials needed in all aspects of the District’s operations from new technology, to replacing aging infrastructure to maintaining the current infrastructure.
The average homeowner in Tumbler Ridge paid $2204.11 in taxes in 2023, making Tumbler Ridge the eleventh lowest residential tax rate, according to the District website.
A 13.5 percent increase on that would push that average up to $2501.66, or $297.55 more than last year for the average home owner. That’s something that most councillors don’t want to see.
Much of the April 16 meeting was given over to discussions of things that could possibly be cut.
After much debate, council decided to forego replacing a ten-year old pickup truck, a signage project that would see two new signs for visitors coming to Tumbler Ridge, the painting of the Public Works building will have to wait until next year, and, as mentioned elsewhere, the previously approved $26,250 Grant in Aid for the Grizzly Valley ATV club for promotional work to attract ATV riders to town.
Council also moved to use $292,000 of reserves to cover the remaining capital expenditures for 2024.
Tax rates are now hovering a about a 7.8 percent increase, which is still higher than some on council would like
Council has two more budget meeting scheduled, April 29 and May 6, to see if they can trim anything else from the budget, and then approve it.
Trent is the publisher of Tumbler RidgeLines.