City council's finance and audit committee was presented Monday with a new "starting point" for discussion of this year's operating budget courtesy of a completed roll of assessed values of property around the city.
Through the up-to-date number from B.C. Assessment, staff revised the estimated non-market rise in value to $1.7 million - a $262,000 increase that, in turn, would reduce the percentage increase to the levy first proposed to the committee in November from 5.03 to 4.33 per cent.
A 4.33 per cent hike would add $4.49 million to the levy, of which $1.5 million would go towards snow control, $1 million to road rehabilation and $1 million to the Employer's Health Tax, under staff's scenario.
The committee was also presented with three options that would increase the levy by five, four and three per cent respectively.
Here's a look:
- Five-per-cent increase: By adding a further $700,000 to the levy, staff said $116,250 could go towards operating Masich Place at its extended hours, $113,225 could go to construction and ongoing costs for the All Wheels Bike Park in Blackburn and $75,000 could go to development of a community cultural plan - a framework to help prioritize the city's grants, public art and resources for cultural services.
The remaining $400,000 would go towards, "sustainable infrastructure goals," staff suggested, noting the general infrastructure reinvestment levy has not been increased since 2016 and the hike would help the city's capital funds keep place with inflation.
- Four-per-cent increase: Of the $1 million increase to the road rehabilitation budget, half would be for investment in bridges and half for gravel roads and urban lanes. To lower the levy increase to four per cent, staff is recommending reducing the portion for gravel roads and bridges to $150,000 from $500,000.
- Three per cent: To lower the increase to that level, a further $1 million would have to be cut.
Staff is proposing that be done in part by eliminating the remaining $150,000 for gravel roads and urban lanes and lower the spending on road paving by $500,000 - the amount devoted to work in bridges is considered a necessity and so would remain untouched.
A further $250,000 could be trimmed by decreasing the general operating fund contingency, but staff recommended strongly against the move, saying the fund is already too low given the size of the city's budget.
"The consequence of this reduction would be less risk mitigation of unforeseen overages," Finance Director Chris Dalio said in the report. "Funds needed over and above the contingency would need to be absorbed by City surpluses or reserves."
Another $60,000 could be saved by eliminating the Supervisor of Engineering Services position and adding a level 2 office assistant and a further $60,000 could be found by staggering the cost of replacing fire services turnout gear.
The committee asked staff to refine a scenario for a four per cent increase for a full city council budget meeting on Feb. 11.
