Kelowna homeowners face big property tax increase in 2016

KELOWNA – Homeowners in Kelowna are likely to be hit with a property tax increase in 2016 that’s well above the 1.5 per cent rate of inflation projected by the Bank of Canada.

At Monday’s regular council meeting, city staff will recommend a 4.11 per cent increase.

That would increase property taxes by about $70 for the owner of an average priced home.

Just over half of the proposed 2016 tax increase is for city operations and capital projects with the remainder going to the new $48 million Police Services Building now under construction.

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“There are a number of commitments from previous years as well as contractual obligations that impact this year’s budget,” says Genelle Davidson, Director of Financial Services in a news release. “Approximately 86 per cent of this year’s tax demand consist of things like the Police Services building project, annual salaries for the six new RCMP members hired in 2015 and employment contracts.”

Councillors will go over the 2016 Financial Plan during an all-day public meeting on December 17th.

In a statement to council, the city manager says 76 per cent of revenues last year came from sources other than taxation and they hope to expand on that.

“The City’s Strategic Services branch has identified a number of opportunities to create or increase revenue, including Ogogrow sales expansion, new energy production options from the landfill and expansion of the City’s fibre-optic network, says Ron Mattiussi.

Proposed capital projects include construction of the next phase of the Ethel Street multi-modal corridor and connecting John Hindle Drive near the landfill to the UBCO campus.

Overall, city expenditures are forecast to increase from $113.5 million in 2015 to $120.2 million next year.

Kelowna council will set the final tax rate in late April.