New Westminster taxpayers will have a better sense of the potential property tax increases they’ll be facing in 2020 by the end of the month.
At the end of February, city staff presented council with an update on the proposed 2020 to 2024 financial plan, which included a proposed 4.9% tax rate increase and a 1% capital levy. Based on council’s input following a Feb. 25 workshop on the budget, staff made a few adjustments to the budget.
“The net change on that would be a reduction of $42,100,” Colleen Ponzini, the city’s director of finance, told council March 9.
Staff will bring back a couple of options for council’s consideration at its March 30 meeting, likely one that’s in the range of 4.8 to 4.9% and another that may be a bit lower.
Mayor Jonathan Cote said he’s comfortable with the direction the city is going with the budget, but is concerned about the idea of cutting items this year and loading them on to next year’s budget as he doesn’t think that’s sustainable.
“This is a challenging year this year. It is higher than typical past years,” he said. “I have a desire to get back a little bit closer to where our norm is in terms of our annual increases. I certainly do recognize this year we have a lot of ambitions to take on some new areas and this budget reflects that.”
As part of the 2020 to 2024 financial plan process, council instructed staff to prioritize items relating to council’s strategic priorities and the city’s seven bold steps to tackle climate change.
Coun. Jaimie McEvoy said he’d like staff to present a couple of options for council’s consideration – one with what’s currently being proposed, which is about 4.9% plus a 1% capital levy, and another option that would result in a lower tax increase.
“I am curious what it would look like at a different number, what changes staff might see in a budget with a lower tax increase,” he said. “I don’t have a figure that I think should be the option … I do think there should be another number that we look at so we can see the differences and evaluate.”
Staff’s plan is to make a presentation about the proposed 2020 to 2024 financial plan at council’s April 6 meeting, so council can give three readings to the financial plan on April 27 and adopt it on May 4.
“I would stress that we really need to do that because we have to be able to have the bylaw adopted by May 15, which only leaves two other meetings after that presentation to the public,” Ponzini told council. “It leaves April 27 and May 4 in order to be able to get the bylaw adopted.”
The city’s 2020 general fund operating expenses total about $157.7 million, an increase from $131.4 million in 2019, which includes a wide variety of things such as salary and benefit increases, additional staff and contracted services to deal with workload issues and strategic initiatives, increased operating costs for the Anvil conference centre and enhancements relates to an accelerated program related to the capital program and strategic initiatives.
The city is proposing to spend $80.1 million on its capital program in 2020, with $36 million supporting climate action initiatives.
