Gibsons residents and business owners can expect only minor tax and fee increases this year as the Town of Gibsons 2010 budget nears completion.
"The recommendation the budget committee is sending to council is that [residential] rates be increased 1.5 per cent. [Business] will also have a 1.5 per cent tax increase," said Coun. Wayne Rowe, who chairs the committee that sets the budget.
For homes valued at $350,000, the increase amounts to about $25.50 higher than last year's Gibsons taxes. Businesses valued at $565,000 can expect a $22.90 tax increase.
The higher dollar increase for homes is because the ratio or "multiple" for tax rates for businesses and residential is narrowing for the third straight year. The multiple is going down from 3.74 to 3.1, shifting slightly more of the tax burden to residents.
The bump in taxes owes largely to infrastructure projects that must be started this year, Rowe said.
Included in those projects is building a reservoir for the Parkland subdivision as well as installation of the ground pipes for the Town's geothermal energy utility set for construction this year.
The Town is also paying to extend sewer lines to the 11 properties brought into the Town from the electoral area of Elphinstone as per the agreement in the summer of 2009.
The last big expense this year is an increase in union wages and salaries for the Town's non-management staff.
"The union contract is up, and negotiations are currently ongoing with them, so we're obviously anticipating some kind of increase. We don't know what yet, but these are the factors," Rowe said.
Director of finance Ian Poole said the Town's revenues in 2009 were down significantly as there was little income from new development permits or interest on Town investments.
Services in 2010 will be largely at the same level they were in 2009.
Also changing is a $2.50 increase to garbage collection fees, which will now total an even $100 for the year. The increase is caused by rising costs in the Town's garbage collection contract, which was renewed this year, and an increase in tipping fees at the Sunshine Coast Regional District's landfills.
Water and sewer fees remain the same as last year.
All told, Rowe and Poole said the 2010 budget should not be a contentious one, and budget discussions went smoothly.
Poole added that while a tax increase of zero would be nice, 1.5 per cent was the best they could do.
"We were definitely cognizant of the fact that there are families struggling out there and a tax increase is never something to look forward to, but this committee was working to keep that as low as they could," Poole said.
The Town is holding an open house on the budget April 12 at 7 p.m. at municipal hall.
