Pemberton residents will see a five-per-cent tax increase in 2022.
On Tuesday, March 8, Village of Pemberton (VOP) manager of finance Thomas Sikora presented the VOP’s final 2022 budget with tax implications to the Committee of the Whole.
At its last budget session on Tuesday, Feb. 22, council directed staff to return with projections of how the budget would look with tax increases ranging from four to seven per cent before making a final decision.
Due to the pressures of the ongoing pandemic, the VOP hasn’t had significant tax increases for the last two calendar years.
However, combined with the current Consumer Price Index (CPI) increase of 3.9 per cent, the lower increases of recent years mean the village risks falling behind on its finances. To keep up with rising prices, a growing community and the infrastructure costs that come with it, the VOP needs a tax increase that at least matches the CPI, and maybe even slightly more to continue to build the village’s reserves, Sikora said in a report to the Committee of the Whole (COW).
“Nobody likes to raise taxes. It’s not a popular thing, especially under circumstances now where we’re seeing gas prices over $2. Everything is costing more, so I know we’re all cognizant of the financial burdens that are on our residents, and we want to definitely keep that in mind,” said Mayor Mike Richman.
“I would, however, point to the fact that we are seeing our operating expenses grow, and if we don’t start to incorporate some reasonable tax increases now, our residents are going to be wholly unprepared for a big hit in the next few years as we continue to grow.”
In the scenarios laid out in Sikora’s report, a four-per-cent tax increase would equate to a $54.90 increase to a $1.056-million-dollar home, while a seven-per-cent increase for the same home would be $96.21.
Richman said his belief is that it would be the most responsible and prudent option for the committee to consider a six-per-cent tax increase, which would mean an $82.46 increase for that same $1.056-million-dollar home.
“Just to be clear on my comments, do I like [a six-per-cent increase]? No. It’s more of what I see coming and what I’ve seen happen, and I know we’re all trying to protect our residents and that’s one of the things we set out to do,” said Richman.
“As Councillor [Ted] Craddock can attest, when we were on council years ago, we started talking about the need to build reserves, and I don’t think we’ve met the targets that were discussed back then in terms of building reserves.
“I’m just trying to be prudent looking to the future. So that’s why I’m suggesting six.”
However, none of the other councillors felt comfortable committing to the six-per-cent increase suggested by Richman, though they also agreed that a significant increase was necessary to continue building reserves. Ultimately, council opted to settle for a five-per-cent tax increase for 2022, which would equate to a $68.72 increase on a home worth $1.056 million.
“I had hoped not to stretch beyond four per cent, but looking at a five per cent and my particular property here, if we go five per cent, I’m looking at just over $5 a month increase,” said Coun. Craddock.
“I think I can handle that even though [I’m a] senior, very low income, but I think we have to take the opportunity to move forward in our community and make sure we have reserves available for things like the new fire truck that’s coming up, [and] a new dump truck for public works. There’s a lot of things we have to do on water and sewer still to make sure we’re ready and prepared for that in the future.”
Some of the major projects on the books this year include the completion of the soccer field and amenity building at Den Duyf Park, the building of the new Bike Skills Park, a new fire sprinkler and protection unit for Pemberton Fire Rescue and multiple water and sewer infrastructure upgrades.
VOP staff will now work to finalize the 2022 budget and five-year financial plan to be reviewed by the COW on March 29, before being presented to regular council for bylaw readings and adoptions on April 5, with the fourth and final reading taking place on April 26.
