SUN PEAKS COUNCIL INTRODUCES ANNUAL BUDGET, TAX INCREASE

Causes for the tax hike include regional tax increases, inflation, high property values and expanded services

By Liz McDonald

High home values, increased services and inflation mean property taxes are increasing for 2023.

Sun Peaks Mountain Resort Municipality (SPMRM) council met on April 21 to present the municipality’s annual budget and five-year financial plan for public input, including an overall 7.5 per cent propety tax increase.

SPMRM Chief administrative officer Shane Bourke presented the 2023 budget and five-year financial plan to council on Friday.

While Bourke said the municipality has traditionally kept municipal taxes low because regional taxes are high, he explained the method isn’t sustainable with an increase in services and inflation. He said inflation has been seven per cent higher over the last 12 years than municipal tax increases.

“Failure to increase now will create larger challenges in the future in our ability to maintain current infrastructure,” Bourke said during his presentation.

Council approved the 7.5 per cent tax increase in December 2022, citing expanded services, high inflation rates and higher property values compared to other regions. According to Bourke, on average, municipal property taxes will increase by $85 for a property worth $500,000 and $170 for a $1-million property.

BC Assessment pegs Sun Peaks’ average home value at $1.6 million. Because home values in Sun Peaks have increased more than other homes in the region, regional taxes paid by Sun Peaks residents have also increased.

Regional tax increases compared to 2022 include a 19.7 per cent increase for BC Assessment tax, a hospital levy of 9.7 per cent and the municipal finance authority levy of 25.5 per cent.

The school levy is 21 per cent, the regional district levy is 10 per cent and the police levy is increasing by 39.8 per cent.

Municipal taxes in Sun Peaks represent 35 per cent of SPMRM’s budget, while 38 per cent comes from utilities. Various grants and fees comprise the remainder of the total operating income.

Operations and capital costs

Bylaw expenses increased 11 per cent in 2023 because the city purchased a bylaw software called Granicus to monitor short-term rental compliance and hired a new part-time employee to cover vacations and enforce daytime parking.

The budget for a permanent daycare is still being developed, but revenue and grants should meet expected costs. The daycare is expected to open in

September and operations will cost more than $400,000 in 2024.

Fire department costs for 2023 have increased by 13 per cent compared to 2022. Expenses include forest fuel treatment, volunteer stipends and staffing, fire fall repairs and emergency response vehicle maintenance.

The health centre budget shows a large decline in expenses and revenue as operations have been transferred to Supporting Team Excellents with Patients (STEPS) as of April 1, 2023. Around $30,000 of revenue surplus from the health centre will be spent to support funding for a mental health program STEPS provides.

Public works expenses for 2023 have increased by 18 per cent. Council has added a temporary project manager position and increased a seasonal public works employee’s contract to year-round. Insurance rates for snow removal have increased as well.

Other public works costs include the transfer station, whose budget is increasing by $6,000 because of increased use in 2023. The total budget from the municipality for the station is $63,000 for 2023 and covers garbage removal and extra days of service during the winter.

Should council decide to increase the station’s service to seven days a week year-round, costs would increase by at least an additional $30,000 per year and result in an additional one per cent tax increase. However, the costs for this possibility were not included in the 2023 budget.

Water utility rates increased by ten per cent and a minimum usage charge was added in January. Wastewater fee charges also increased by 10 per cent in 2023 because the number of full-time residents increased and tourism returned to the mountain in full force.

The total cost to operate and improve the Sun Peaks Centre in 2023 is $2,246,810. Planned work includes adding removable bleachers, acoustic panelling, a compressor for the ice rink and a curtain wall.

Landscaping around the centre will cost $50,000, the plaza and tennis courts cost $1.2 million and the pool will cost over $300,000. Bourke expects the pool will open in 2023.

Long term debt

SPMRM is planning no new debt borrowing in 2023 or 2024. The next planned debt is in 2025 to replace a fire truck.

The municipality estimates it is at 71 per cent of its debt limit. Current debt from loans is $14.5 million and the municipality’s annual principal debt payments are $952,328.

Any public input on the proposed budget will be brought forward to council on May 2 and the plan will be adopted on May 10.