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Committee examines Summerland budget

While the finance committee is working on the 2012 municipal budget, Mayor Janice Perrino expects any tax increase to be modest.
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The members of Summerland's finance committee are meeting to consider the 2012 municipal budget. The budget will be presented and approved in spring.

While the finance committee is in the early stages of drawing up the 2012 municipal budget, Mayor Janice Perrino expects any tax increase to be modest.

“If the past three years are any indication, we will try to keep the taxes as low as possible.

Over the last three years, the tax rate in Summerland rose a total of five per cent. In the three years prior to that, increases came to 15 per cent.

However, Perrino would not promise a zero per cent increase, as has been stated for Kelowna and Penticton.

“The goal is to make sure the bills are always being paid,” she said.

Municipal treasurer Ken Ostraat said the municipal finance committee is working to keep any increase at or below the rate of inflation.

The tax increase is expected to be modest in part because the municipality is taking a break from additional capital work in 2012.

“There are no huge projects being contemplated right now,” he said.

One item under consideration is a roundabout at the intersection of Prairie Valley Road and Victoria Road South.

The cost of this is estimated at $1.2 million.

Ostraat said there is the possibility that half the funding could come in through a federal gas tax rebate program. The rest would then come through development cost charges funding.

In recent years, the municipality has taken on a number of projects including the construction of a new police station and improvements to Rosedale Avenue and Prairie Valley Road.

Other projects have included the construction of a water treatment facility and the expansion of Thirsk Dam, along with other work to improve the water system.

The collective cost of these projects has been a concern.

The Helios report, released last summer, identified Summerland’s financially extended position as a problem for the community.

“The district cannot currently afford to maintain all working infrastructure at peak levels,” the report said.

Ostraat said the community, well over 100 years old, needs to have upgrades and replacements to various parts of its infrastructure.

The municipal budget will be presented and approved in spring.

Last year’s budget was for $10.6 million. Taxes last year increased by one per cent.

 



John Arendt

About the Author: John Arendt

I have worked as a newspaper journalist since 1989 and have been at the Summerland Review since 1994.
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