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New Westminster taxpayers to pay new levy on top of property taxes

One per cent levy approved and 2.95 per cent property tax hike proposed
New Westminster city hall
A survey about the City of New Westminster's budget is expected to go online this week. Council has directed staff to prioritize items that relate to addressing the climate crisis.

Royal City residents will be paying a new one per cent tax levy starting in 2018 to help finance capital projects.

Colleen Ponzini, the city’s acting chief financial officer, said it’s becoming apparent the city’s capital reserves need to be augmented as a result of the need to increase funds to replace and maintain capital assets and to invest in new infrastructure to meet the needs of a growing community

“Staff are proposing a one per cent annual levy, with it bringing in approximately $755,000 in 2018 to be used for capital. If implemented it could grow to approximately $4 million annually by 2022,” she said. “Such a levy would increase the annual taxes for an average single-family residence by approximately $29 in 2018.”

On Monday night, council approved the implementation the annual levy for capital projects. For the first couple of years, the levy would go towards the Canada Games Pool/Centennial Community Centre replacement project, but it would then help fund the replacement and maintenance of the city’s other capital assets.

The city’s $64 million capital program for 2018 includes relocation of the animal service and tow yard, renovations to the main branch of the public library, design work for the future replacement of Canada Games Pool and Centennial Community Centre, and city hall renovations and seismic work, as well as improvements to the city’s transportation and parks infrastructure, buildings and equipment maintenance, and projects to enhance the city’s arts and culture portfolio.

Looking out to 2022, Ponzini said the city’s capital program anticipates spending $243 million, of which $124 million would be funded through reserves, $95 million from debt and $24 million from development cost charges, grants and contributions. She said staff are actively trying to secure grant funding, which could reduce the need to borrow money and/or borrow on these reserves.

Ponzini said the main projects in the five-year capital program are essentially the same as those planned for 2018, with the addition of a few larger projects such as the Q2Q ferry, a waterfront connection and Massey Theatre replacement.

Mayor Jonathan Cote said staff has outlined a “very prudent” approach to dealing with New Westminster’s capital infrastructure. As an older city, he said the city has aging infrastructure that needs to be addressed.

“Certainly, at this point it’s an appropriate time to be looking at ways that we can address that capital program,” he said. “I think we are cautiously optimistic at the city that we are going to be able to secure some federal and provincial funding to help with some of those major projects, but I think regardless, I think we need to make sure we are setting enough funding aside in our reserves to be able to move forward with those important and well used facilities in our community.”

The levy was one component of a report considered by council Monday night relating to the city’s draft 2018 to 2022 financial plan, which is proposing a 2.95 per cent property tax increase in 2018. That’s estimated to be an additional $35 for a residential strata assessed at $425,800, $85 for a single-family home assessed at $1,177,600, $143 for a single-family home assessed at $2 million, $709 for a business assessed at $2,373,700 and $1,471 for a light industrial property assessed at $3,792,300.

In addition to the proposed 2.95 per cent property tax increase, council has already improved a six per cent increase to the water rate, a seven per cent increase to the sewer rate and a three per cent increase to the solid waste rate.

 

Fast facts:

* 67 per cent of the total general operating budget goes to salaries and benefits for city employees.

* Revenues to pay for city services are budgeted at about $107.5 million in 2018, which compares to $102.4 million in 2017.

* Taxation revenue contributes $79.3 million or 74 per cent of total general revenues.

* The 2018 increase incorporates $1.6 million in taxation revenue from new construction.

* The 2018 general fund operating expenses total about $124 million, which is an increase from $119.6 million in 2017. This provides for municipal services including police, fire, parks and recreation, engineering, development services, library, culture and administration.

* The net $4.4 million increase in expenses is mainly due to salaries and benefits related to salary increases and additional staff and contracted services to deal with workload issues and strategic initiatives.

* The net transfer from the operating budget to city reserves in 2018 is about $4.7 million. The city transfers funds to reserves for the replacement and maintenance of equipment, facilities and infrastructure.

* The 2018 capital budget is proposed to be $64 million, which is up from $54 million in 2017. It include funds for annual maintenance and replacement of transportation infrastructure, civic facilities, vehicles and equipment. It also includes funds for strategic priorities that have been identified by the city, such as city hall renovations, the relocation of the animal services facility and tow yard, upgrades to the main branch of the New Westminster Public Library and design work for the future replacement of Canada Games Pool and Centennial Community Centre.

* New construction is expected to contribute about $1 million annually in new tax revenue.

* Annual tax rate increases of 1.37 per cent to 4.53 per cent are anticipated in future years.