City staff proposing lower tax hike for 2020

Kelowna council will discuss a plan to reduce its proposed tax hike at its next meeting on Monday.

Staff is recommending a reduction from the provisional budget’s 4.15 per cent increase, to 2.05 per cent to provide residents with financial relief on top of measures already approved.

To reduce spending, staff is proposing cuts to base budgets, the elimination or delay of new positions and programs and the deferral of some capital projects.

“To help provide support for residents and businesses experiencing financial difficulty, the city has already delayed the late penalty fee for property taxes, waived several charges and fees, supported free transit and provided free parking in some areas,” stated a city news release. “The province has also provided additional help to businesses by reducing the school property tax rate and deferring the late penalty tax date for commercial businesses.”

The city has reduced its workforce by 15 per cent.

The 2020 spending plan will allow ensure that essential city services, such as water, wastewater and sewer, police, bylaw enforcement and fire are maintained, with measures put in place to keep staff and front-line responders safe.

The city relies on property taxes to fund about one-third of operations, with the majority of funding coming from other sources such as reserves and surplus, fees and charges, and borrowing.

Adoption of the proposed 2.05 per cent would mean that 25 per cent of the city’s operations would be funded by taxation for 2020.

“Many things remain uncertain, but readiness, resiliency and recovery are our goals as we navigate this evolving economic landscape,” said Genelle Davidson, Divisional Director, Financial Services. “We continue to be financially prudent and will adapt by monitoring, planning and making strategic decisions to help us meet the current and future needs of our community.”