Following budget discussions over the last few weeks, the City of Cranbrook has landed on a proposed 5.87 per cent tax levy increase for the 2023 budget and five year financial plan, which is set for adoption later this spring.
Originally as potentially high as 7.96 per cent, city council and senior administration staff made decisions to cut that down nearly two per cent by temporarily suspending the one per cent dedicated road tax for one year, while further choices also blunted the impact of the increase.
“If we’re going to take something to the taxpayer over seven per cent, I’m telling you, I’d be really concerned,” said Cranbrook mayor Wayne Price, during budget discussions on Wednesday (Feb. 8) evening.
Suspending the one per cent dedicated road tax removes $300,000 from the budget, which translates into about 500 metres of road resurfacing (2-3 blocks) or 1,500 metres of sidewalk replacement (7-8) blocks, according to staff.
The 2023 tax levy increase is the largest increase in recent years, as the city blames inflationary pressures, such as rising fuel and diesel fuel costs for all aspects of municipal operations, which have doubled since 2021. Rising electricity and heating costs in city buildings and facilities are also contributing, as well as parts and supplies to maintain infrastructure and roads.
In a bulletin explaining tax rates, the city notes different levels of service vary between municipalities, which is why those rates fluctuate between communities.
Also, Cranbrook does not have a significant industrial tax base like Fernie, Sparwood and Elkford do, all of which receive a cut of property tax revenue from the Teck coal mines through the Elk Valley Property Tax Sharing Agreement.
The city also cautions that a 5.87 per cent tax levy increase is only the municipal portion of the property tax bill, and other increases may come depending on rates set by School District 5, the Regional District of East Kootenay, the Kootenay East Regional Hospital District and B.C. Assessment.
With an average assessed value of a single family home at $446,00, the city estimates the 5.87 per cent tax levy increase translates to an $155 increase to the municipal tax bill.
A draft 2023-2027 five-year financial plan will be posted on the city website by March for public comment and feedback.