After many months of hard work and numerous meetings Gibsons council gave first reading to its 2011 budget bylaws on April 19.
The budget includes a residential tax increase of 3.5 per cent, while business tax sees a reduction of 0.5 per cent.
Director of finance Ian Poole broke the numbers down explaining the residential tax works out to an increase of $23 and the business tax decreases to $14.
He said the reduction is primarily due to what he calls the business tax ratio (BTR): the ratio between residential and business tax. The 2011 budget sees the BTR at 3.02 per cent, reduced from the previous 3.1 per cent.
Poole said this is the fourth year in a row the ratio has been decreased.
As for assessment trends, the average home value in all neighbourhoods increased by 7.54 per cent from $350,000 in 2010 to $377,000 in 2011. The average business value also saw an increase coming in at 6.54 per cent. Valued at $598,000 in 2010, the number rose to $637,000 in 2011. Poole pointed out that assessment and taxation have separate processes as assessments are determined by BCAA while council sets tax rates.
The budget process faced its share of challenges, such as limited municipal revenue sources, a high reliance of grants (approx. 39 per cent), and investment interest rates remaining low. Some cost drivers include a 3.3 per cent inflation rate, energy costs, a need to establish future replacementreserves, and business competitiveness.
"It's not because we're trying to provide a break, we're trying to continue enjoying the commercial contributions to our tax base, which is 30 per cent," said Coun. Gerry Tretick."The fact is we want businesses here to help support our tax revenues."
Budget project highlights include road pavement (deferred from 2010), construction of the RCMP building, and replacing the stairs at Molly's Lane. Ongoing funding will continue for the Gibsons Harbour plan study, as well as the Climate Action Plan and Gospel Rock neighbourhood plan.
Further readings will take place in the next few weeks with the budget adopted by May 10.
