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Kelowna  

City of Kelowna proposing a 2021 tax increase of 4.27 per cent

Tax hike over 4% proposed

Kelowna taxpayers could face a tax increase of greater than four per cent in 2021.

When council gathers to debate the budget next Thursday, it will be asked to approve a preliminary increase of 4.27 per cent.

If approved as is, it would mean an additional $90 a year in taxes for the owner of an average home valued at $691,000.

It would also be the second largest one-year tax increase since the turn of the century.

The largest increase since 2001 was a 5.66 per cent hike in 2008.

The city's 2020 budget, initially approved at 4.15 per cent, was eventually slashed to 2.05 per cent as residents and businesses struggled with layoffs and shutdowns resulting from COVID-19.

In his pre-budget report, financial planning manager Kevin Hughes says COVID-19 has created complex challenges for families, businesses and other organizations including the city.

"We have addressed several of the acute outcomes by drawing on reserves, renewing existing assets wherever possible, and using stimulus funding strategically, however, the longer-term repercussions and ripple effects of the pandemic may not be fully apparent for some time," wrote Hughes.

"In response, we present a budget that promotes stability, ongoing responsible fiscal management and maintains continuity in providing the essential services that our residents expect from us while making sure we are well positioned for recovery."

The budget includes an increased 2021 operating budget of $157.6 million, which is $7.1 million higher than this year.

It calls for increases for community safety which includes the RCMP of $3.11 million ($43.5M), civic operations of $1.4 million ($32.39M) and the fire department of $270,000 ($20.59M).

It also includes a sizeable decrease in the infrastructure budget of $2.97 million.

The proposed budget document includes additional city expenses for additional cleaning supplies and enhanced cleaning, masks, work-from-home equipment, the safety ambassador program and 15 hours a week of administrative support around COVID-19.

Those costs, which were not broken down, are expected to be covered with a portion of the $5.367 million earmarked for 2021 from the COVID-19 safe restart grant from the province.

General taxation makes up just 40 per cent of the anticipated $390 million the city expects to spend next year.



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