The tax rates for the Town of Lake Cowichan will be finalized over the next couple of weeks and Mayor Bob Day wants to calm any fears that taxes will be increased to match 2021 property assessments.
“By now, we have all received our 2021 property tax assessment notices in the mail and have seen our property assessments, by and large, rise upwards around 42 per cent,” he said in his mayor’s report. “I would like to assure everyone that this does not mean that your municipal property tax payable this year will rise 42 per cent.”
“In the upcoming weeks council will bring forward a final budget that has been given much thoughtful discussion, that will best serve the community and our residents,” he said. “We work very closely with staff on this process to justify the final numbers contained in the budget and together we come up with what we believe will be best for the now, and for the future of our community.”
The preliminary numbers, according to Day, show “a modest 4.5 per cent increase” over last year’s dollar amount.
He noted a two per cent increase in last year’s budget was approved by council so the town could try to catch up with aging infrastructure projects that were paused due to the pandemic as well as the significant increase in the costs of materials.
Day also noted council’s consideration of water and sewer parcel tax hikes to help fund future capital costs in those services.
“With the completion of our new water treatment plant and with the necessity to move forward with upgrades to our wastewater treatment facility, on the near horizon, it is more important than ever to properly fund the capital reserve accounts for these two important services. This is where parcel taxes play an important role,” said the mayor. “Water and sewer parcel taxes are put into reserve funds that must be used for capital improvements in these two areas. Staff and council are also hoping to be successful in an upcoming grant application to help fund the wastewater facility project and lessen that cost burden to our residents.”
The mayor and council are proud, Day said, with how much they can accomplish with the taxes they collect.
“A very interesting statistic was brought to my attention several years ago. And that is, that only eight cents of every tax dollar paid by you and I, gets collected and spent in the municipalities we live in,” Day said. “Unlike the other levels of government, municipalities only have one source of revenue and that is property taxation. As the only source of revenue your local government must supply and maintain the roadways, sidewalks, sewer and water systems, solid waste pickup etc. This tax system is unlike the provincial and federal governments, who gather revenue from income tax, sales tax and consumption taxes.
“Your local government supplies the most important services that touch our daily lives with that eight cents on the dollar and do so using a balanced budget. I believe I can speak for the rest of council when I say that our staff do an excellent job balancing the wants and needs of the community given that our property tax revenue is derived from an approximately 85 per cent residential tax base.”
Those wishing to hear council’s discussions about the budget can find the Special Committee of the Whole meetings on the Town of Lake Cowichan’s YouTube channel.