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Property tax increases keep pace with inflation

But school tax increase will mean 11 per cent jump in total tax bill, on average Municipal property taxes are increasing at the rate of inflation, 2.

But school tax increase will mean 11 per cent jump in total tax bill, on average

Municipal property taxes are increasing at the rate of inflation, 2.2 per cent this year, yet the average taxpayer can expect to see an 11 per cent jump overall on their 2003 tax bill.

The increase is a result of the 17 per cent hike in provincial school taxes, which the municipality does not control.

"We’re really quite concerned about increasing taxes," said Lisa Landry, manager of fiscal planning for the municipality.

"We tried very hard not to increase taxes and we didn’t. We didn’t increase them more than inflation and yet the average person is going to see an increase because of the school taxes."

The 2.2 per cent property tax increase to inflation was part of the municipality’s Five-year Financial Plan, presented to council on Monday night.

Property taxes will make up $22 million of the municipality’s $42 million budget for the year.

Even though property tax rates did not increase last year because of 9/11 and other uncertainties, Mayor Hugh O’Reilly said that policy cannot be sustained over a longer period of time.

He added that in a comprehensive community survey done every few years, the results show strong support to keep municipal taxes to the rate of inflation or below, even at the cost to other capital projects.

"(The community was) very clear and they said, ‘We’re comfortable with that even if it means adjusting long term financial capital programs and services," said O’Reilly.

"So we’re adhering to them."

He added that the increase to inflation would not likely put any of the scheduled capital projects on hold this year.

Both property taxes and school taxes are a function of assessed property values. That property value in Whistler experienced another surge this year with single family homes going up by 28 per cent and condos going up by 35 per cent on average.

This year the average increase in assessment for all residential classes jumped from $788,000 to $1,043,312, an increase of 32 per cent.

Property taxes on that "average" home will be $1,961, a 2.2 per cent increase over last year, and school taxes will be $2,681, a 17 per cent increase over last year.

Properties with an increase in assessed value above the average 32 per cent increase will see a corresponding increase in taxes.

For example a condo assessed at $372,000 last year went up 36 per cent this year to $506,000.

The municipal taxes on that condo increased five per cent from $905 to $951. The school taxes on that condo increased 21 per cent from $1,075 to $1,300.

Overall the gross tax bill will increase by 12 per cent on the condo and the owners will pay $3,090 this year, an increase of $319.

On the other hand, there will be a decrease in municipal taxes for properties, which did not increase as much as 32 per cent average in assessed value.

For example, a $5,199,000 home that was valued at roughly $4.6 million last year increased by roughly 13 per cent.

Municipal taxes on that home will be $9,770, a decrease of 12 per cent. School taxes on the property will be $13,361, an increase of one per cent. The final tax bill will be just over $25,000. That’s a five per cent decrease in the gross tax bill compared to last year.

Still, the fact remains that they’ll be paying $25,000 in taxes.

"My view is that there is a segment of this community who have lived here for a long time... but if the trend continues I think we’re going to find that these people will no longer be able to live here because they cannot afford to pay $25,000 in taxes," said Councillor Nick Davies.

"They’re going to get driven out of this community. We really need to do something about the school tax issue."

Municipal and provincial representatives are still trying to flesh out a solution to address the school tax concerns in Whistler.

O’Reilly said he is optimistic that a solution can be a found in time for this tax year.

"We’re still holding out that we can get some resolution this year," he said, adding that it’s not for a lack of trying on the municipality’s part.

"It’s complicated and that’s the challenge," he said.

Looking at the 2003 budget as a whole, Landry said there were a number of considerations, which ultimately shaped the financial direction in the five-year plan.

A host of global problems, ranging from SARS to the fallout from Sept. 11 to the war in Iraq has had an economic impact, creating "a lot of geopolitical uncertainty out there," said Landry.

This, combined with the softer U.S. economy has also impacted the resort.

Last year there was also a little bit of a pull back in the hotel tax revenues but according to Tourism Whistler estimates those numbers are expected to recover in 2003 and have some modest increases in 2004-2007.

Landry mentioned that new construction also impacts the budget. This year new construction has been consistent with how it has been in the last five years or so, she said.

The budget was very late in going before council this year for a number of reasons, not the least of which was the fact that it was an election year and council was not finalized until January.

As such O’Reilly said council has not had a full discussion on the 2003 capital projects.

Despite this he is confident that the major capital programs will continue on their projected course.

Those programs over the million-dollar mark this year are the conference centre renovations, the Spring Creek elementary school and Firehall, and the Emerald sewer collectors.

The municipality will make its final contribution to Tourism Whistler for the conference centre improvements, $2.9 million.

Another $1.7 million will go to the development of community space in the new Spring Creek elementary school. Adjacent to the school the municipality will invest another $1.6 million in the Spring Creek Firehall. And $1.3 million will go to the Emerald collectors to connect the remaining Emerald Estates lots to the wastewater treatment plant.

Other big capital projects this year include $600,000 for the Village Square improvements, $800,000 for improvements to the wastewater treatment plant and $450,000 to the design and construction documents for the library/museum.

There will be a special council meeting on Monday morning, May 12, to adopt the tax and budget bylaws.

Tax bills will be mailed out on May 21 and are due on July 2.