THE ISSUE:
Municipal budget
WE SAY:
Zero per cent increase comes with a windfall - how will they spend it?
Squamish council spent a good amount of time patting itself on the back Tuesday (March 8) for passing what it called its second straight zero per cent tax increase in its 2005 budget.
We're impressed with how quickly they came up with the budget this year - it seems to be getting earlier and earlier - but we think they're opening themselves up to yet another crisis of perception by calling this a zero per cent increase.
Council is not being dishonest - they are, indeed, budgeting to collect exactly the same total amount of residential property taxes from pre-existing properties in 2005 as they did in 2004. That means the "average" residential property owner will see a zero per cent tax hike.
The problem, of course, is that there is no "average" property owner. The calculations used to figure out residential property taxes take into account every type of residential property, from the smallest condo to the biggest mansion. As a result, the "average" number tends to fall right in between - more expensive than most condos or townhouses, but less than the majority of single-family homes.
Those of you whose assessments went up 20 per cent or less can rejoice - you're either enjoying the District's zero per cent budget or you're even getting a tax break. The rest of youwell, here's where zero isn't zero.
That part is largely beyond council's control. As long as property taxes are linked to the roller-coaster real estate market, people will have to read municipal budgets with a calculator in hand to find out what exactly it means for them.
But what council does have control over, and isn't pointing out as it touts its zero per cent increase, is that it's still getting a $600,000 windfall over last year, thanks to new inventory in business and residential property - a windfall that would have been closer to $1 million if it wasn't for the closure of International Forest Products' Squamish sawmill.
Council is reaping the rewards of growth in this community - as it is entitled to. But it should be careful about clothing itself in the garb of fiscal responsibility while pocketing more than half a million new tax dollars.
Needless to say, we'll be keeping a very close eye on how they spend it - and we probably won't be the only ones.
