As the municipality prepares its 2012 budget, one thing is certain: Taxes will go up once again this year although the amount of the tax increase has not yet been determined.
The municipal finance committee has recommended a one per cent increase in property taxes for this year.
If approved, the increase would be reminiscent of the zero and one per cent increases which were common in the late 1990s and early 2000s.
This low increase reflects a push by some to keep tax rates as low as possible.
During the last municipal election in November, mayor and councillor candidates across the province were urged to sign a pledge from the Canadian Federation of Taxpayers, promising not to riase taxes beyond the rate of inflation.
At first glance, such a pledge seems reasonable, but it does not take into account the increasing costs municipalities will face.
In Summerland, several large projects have been undertaken in recent years, depeleting the municipality’s reserves.
The one per cent tax increase has been recommended in order to replenish these reserves.
An increase of one per cent adds just $63,000 to the municipality’s funds — a small fraction of the total budget of $25 million to $28 million.
At best, it allows the municipality to continue to provide its present level of service to the public, but leaves no room for additional expenses which may arise.
The finance committee members are working to keep the tax rate under control and we appreciate their efforts.
Still, at the end of the day, it will be up to the members of our municipal council to determine whether a one per cent increase would be sufficient or whether it would be too stringent.