Pemberton’s mayor and council are weighing their financial priorities in the face of continued growth pressure, with a range of tax-increase options on the table.
At a budget session on March 5, council deliberated those potential tax increases and the implications they carry.
The pressures the municipality faces are many, explained manager of finance Thomas Sikora, in a report to council.
Those pressures include (but are not limited to): rising costs for goods and services; deteriorating roads in need of repair; increasing expenses to maintain infrastructure; and a vehicle fleet reaching the end of its life.
Meanwhile, “in 2024, another material drop in development revenue, primarily due to lower forecast building activity, is forecast,” Sikora said in his report.
That includes a decrease of $70,000 in budgeted year-over-year revenue for fees and permits in 2024.
There’s also the looming spectre of increased policing costs once Pemberton’s population hits 5,000, after which the village will be on the hook for 70 per cent of the spend. In 2023, the VOP police budget was $288,447—once the population threshold is reached, that figure could climb to more than $1 million.
Provincial COVID-19 grant funding received in 2021 “was used for a variety of eligible operating expenses that would have otherwise required tax increases, including upgrades in information technology and remote software, hardware, and labour expenses,” the report noted.
With those funds set to run out by the end of the fiscal year, “these previously supported operational expenditures will be fully funded through taxation starting 2025 and included onward in the 5-Year Plan,” it said.
Tax scenarios up for consideration range anywhere from a one-per-cent increase (which would net about an additional $25,000 for the VOP) all the way up to 18 per cent (which would pull in close to $450,000, nearly half of which would be directed to the VOP’s reserves).
“Staff recommend that Council focus on contributing to largely underfunded reserves, in addition to increasing tax to address the operating pressures that support core services,” Sikora said in his report.
“The operating budget as presented is designed to maintain existing core service operating levels, including maintenance of aging infrastructure, while accounting for the increased service demands associated with the recent rapid growth experienced in development and infrastructure.”
If council opts for a tax increase that will support additional reserve contributions, the incremental cost over the baseline tax-increase options will amount to between $135.93 and $263.65 for the average single-family assessment, and between $95.29 and $184.82 for the average residential assessment.
As always, individual tax increases will differ based on each property’s assessed value.
The 2024 tax increases will be confirmed at a future meeting.
Pemberton’s council approved a five-per-cent tax increase in 2022, and an eight-per-cent increase in 2023.
“Council’s direction around tax increases will be reflected in the next budget iteration,” the report reads.
“The current budget reflects a deficit of $221,518 and is not inclusive of any tax increases. Of note, it is preliminary and subject to change resulting from impacts of year-end and audit, which [is] going on in parallel to budget development.”
Some of the projects planned for 2024 include: construction of a new amenity building at Den Duyf Park; the Lot 13 multi-modal hub (which will include bays for BC Transit buses as a second phase to the project); upgrades to the water treatment plant; and airport runway crack sealing.
Find more info and read the budget documents yourself at pemberton.ca/budget.
Residents are invited to participate in the budget process by submitting feedback via email to [email protected].
