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Summerland budget calls for 4% tax increase

Tax bill expected to rise by $67.02 for typical home
Summerland has a budget of 17.8 million for 2022. The budget calls for a four per cent tax increase. (District of Summerland chart)

Property taxes in Summerland are expected to rise by four per cent for 2022.

The municipality’s budget, which is before council, is for $17.8 million. David Svetlichny, director of finance for the municipality, said the budget required an increase of $379,298 or four per cent for general operations. A tax increase of one per cent would bring an additional $95,325 into municipal coffers.

The tax increase will mean an additional $67.02 for a typical home with an assessed value of $791,469.

Summerland mayor Toni Boot said the municipality is working to keep costs low while still providing for the needs of the community.

The biggest share of revenue for Summerland will come from property taxes, which are estimated at $10,663,500. This is 60 per cent of the revenue stream.

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Solid waste curbside collection and landfill fees are an additional 12 per cent, or $2,190,700. Other revenue sources include grants, recreation services, licenses permits and fines, electric fund dividends and more.

Of the municipality’s expenses, protective services is the largest single category, at $3,622,600, or 20 per cent of the budget. Public works and recreation each account for around 17 per cent of the budget, while solid waste and general government expenses are both around 13 per cent.

Transfers to reserve funds are expected to account for $2,077,400, or 12 per cent of the municipal budget. In addition, other municipal budgets will also contribute to future reserves. The water fund will transfer close to $950,000, the sewer fund will contribute around $430,000 and the electrical fund will contribute around $626,000.

Reserve funds are used for replacing or upgrading infrastructure in the community.

Boot said the municipality has been working to bolster its reserve funds over the past five years. Reserve funding will help to pay for costs in the years to come.

“There are expensive things ahead that we know are going to be coming,” she said.

In addition to the property tax increase, the municipality has increased its utility rates for 20222. Water rates increased by five per cent, sewer rates increased by 4.21 per cent and electrical rates rose by 2.51 per cent.

The utility rate increases are expected to add $101.15 to the utility bills over the course of the year.

Summerland has had tax increases in previous years as well. In 2021, the increase was 1.65 per cent while the 2020 increase was four per cent. Taxes rose by 3.5 per cent in 2019 and 2.75 per cent in 2018.

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John Arendt

About the Author: John Arendt

John Arendt has worked as a journalist for more than 30 years. He has a Bachelor of Applied Arts in Journalism degree from Ryerson Polytechnical Institute.
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