Summerland鈥檚 property taxes will increase by 7.25 per cent in 2025 in order to balance the municipality鈥檚 budget of $22,715,503.
At a budget open house on Jan. 15, Summerland mayor Doug Holmes said the increase, while higher than in previous years, is lower than most other Okanagan communities. Penticton has an increase of 7.8 per cent and West 91大黄鸭 is looking at an increase of 7.43 per cent, he said.
鈥淲e know residents and businesses continue to face increasing costs, and we don鈥檛 want property tax increases adding unduly to the hardships we are all feeling,鈥� Holmes said. 鈥淭his is why council strives to keep our taxes lower than other municipalities."
The increase adds $129.95 to the tax bill for a typical single-family home in the community, with an assessed value of $878,808.
According to statistics from the municipality, a house with an assessed value of $850,000 would pay $2,112.31 in property taxes. This amount is lower than the taxes charged for a property with the same assessment in 91大黄鸭, Peachland, Vernon or Penticton.
Rising labour costs and contractual increases contributed to the tax increase in Summerland.
However, in an attempt to keep taxes lower, Summerland has implemented several cost-cutting measures.
Those who want to receive their utility bills by mail will be charged an additional $1.50 postage fee. Building permits are rising by an additional $1 per $1,000 of construction value.
The municipal newsletter is moving to an online format and statutory notifications are moving to an alternative means of publication. Unlimited yard waste collection days will be eliminated in 2025.
Some municipal projects have also been affected by cost-cutting measures. The paving work at Peach Orchard Cemetery has been deferred and road line painting in the community has been reduced.
鈥淎fter two years of cuts, including staff layoffs last year, the only way to keep this year鈥檚 tax increase in line with other municipalities is to reduce some service levels and introduce some user-pay fees,鈥� Holmes said.
David Svetlichny, director of finance for Summerland, said council and staff worked to bring the tax increase down. In early December, an increase of 9.27 per cent had been proposed.
A one per cent tax increase brings in around $108,500, he said. In addition, Summerland鈥檚 electrical utility brings in around $500,000. Without this utility, taxes would need to rise by an additional 4.61 per cent to balance the budget.
Svetlichny said Summerland council members have been scrutinizing the budget and finances.
鈥淚n the past two years, we鈥檝e gone through extensive budget cuts,鈥� he said. 鈥淎ny further operational cuts will affect service levels.鈥�
Property taxes will bring in $12,721,700, which accounts for 56 per cent of the general operating revenues.
Solid waste, such as curbside collection and landfill fees, will bring in $2,601,200, or 11 per cent of the revenues.
Other revenue sources include grants, fleet recoveries, recreation services, licenses, fees and permits and other income sources.
The money goes to several municipal services.
Protective services, including police and fire protection, is the highest category, with a cost of $4,791,300.
Recreation and cultural services require $3,841,300. Public works has a budget of $3,685,300. General government accounts for $3,685,900. Solid waste costs come to $2,249,800. Funds to reserves will account for $2,549,100. The development services department costs $1,685,300. Debt servicing costs the municipality $766,300. Cemetery operations have a cost of $189,300.
Summerland鈥檚 property tax increases in previous years have been lower. The 2024 budget had an increase of 5.38 per cent, while in 2023 it was 3.76 per cent and in 2022 the increase came in at four per cent.
The budget open house was for the general operating budget. The electrical, water and sewer utilities are calculated through separate budgets. For 2025, increases to utility rates work out to 6.51 per cent, or $207 a year or $17.25 a month for a typical single-family home in the community.
