New Westminster taxpayers will face a tax hike of no more than three per cent in 2013 - with much of the money going into reserves to minimize tax increases in the years ahead.
When city council began budget discussions, staff brought forward a budget that includes provisions for a zero-per-cent property tax increase - as well as requests for additional funding to address workload challenges and items deemed to be high priority. After considering those items at last week's council meeting, the proposed budget increase was adjusted to 2.37 per cent, which included the addition of staffing for animal services license registration, Anvil Centre operations, arts services and other staffing positions.
By the conclusion of Monday's council meeting, the proposed tax increase had grown - reflecting additional moneys that council will direct toward the creation of civic facilities reserves for Canada Games Pool and Massey Theatre and reserves for Anvil Centre.
Finance department staff were working through the detailed numbers and making sure that everything balanced at The Record's deadline. While the final impact of the proposed budget on this year's taxes was still being determined, it's expected to be in the range of 2.9 per cent.
The tax rate includes provisions for "rate stabilization" funds of $400,000 for Anvil Centre, as well as $200,000 for reserves related to Massey Theatre and $500,000 for reserves for Canada Games Pool.
Colleen Ponzini, the city's manager of financial services, told The Record the facility reserves are separate, but they all serve to put money aside now so the city doesn't have to raise those funds in the future. She said the $400,000 being directed toward Anvil Center is over and above this year's operational expenses.
"We will bring in some funds this year, use some of those in 2014, because we know that is where the costs are," she said
Revenue from digital signs that are being constructed at four sites in the city isn't included in the budget at this time as council has yet to determine the use of those funds. The city anticipates the signs could generate up to $500,000 this year.
Coun. Betty McIntosh expressed concern that the revenue that's expected from digital sign revenues this year isn't being incorporated into the budget.
"If we have revenues coming in, we can't put them away in envelopes, in pockets," she said.
McIntosh was the only councillor to oppose the proposed tax increase.
"I feel we are not there yet," she said. "The numbers kept bouncing around today."
Coun. Bill Harper said the city knows there are a number of projects that will require significant funding in the future, including renewal or replacement of Canada Games Pool and contributions to a new Massey Theatre when the new high school is built.
"I think this is a forward looking kind of approach council is taking," he said.
While he understands concerns about affordability, Coun. Chuck Puchmayr supports the city's decision to put money into reserves for future projects and to offset expected tax increase from the operations of Anvil Centre.
He said the city could bring in a budget with a zero per cent tax increase and look brilliant, but it would be saddling future city councils with "huge increases" in coming years.
"This is prudent," he said. "It doesn't clean the table off to make us look good."
While the city will still try to reduce some costs in the draft budget, Puchmayr said the budget that's being proposed doesn't artificially try to make council look good.
"This was an honest reflection of what the needs are in the next five years," he said. "It doesn't cook the books."
Coun. Jonathan Cote said one of the biggest contributors to the proposed tax increase is the money that's being set aside for Massey Theatre and Canada Game Pool.
He believes it's prudent of the city to set funds aside to deal with those projects in the future and to give community members comfort that those projects will proceed.
"If you put money aside, you save money," said Coun. Jaimie McEvoy. "You save money in the long run."
Staff will make a presentation about the budget at the March 11 evening city council meeting.
Community members are invited to attend the meeting and comment on the proposed budget.
For more on the City of New Westminster's budget, see Theresa McManus's blog at www.royalcity record.com.
