City hikes taxes 2.95 per cent

City hikes taxes 2.95 per cent: Budget hits $237.5 million
By Dan Hilborn, Burnaby Now assistant editor
Published May 7, 2003

Burnaby property taxes will rise 2.95 per cent this year - the fourth lowest of any Lower Mainland municipality - after the annual financial plan was given three readings by city council on Monday night.
Coun. Dan Johnston, chair of the city financial committee, said the tax hike will amount to a tax increase of about $31.50 on the average city home. However, when other tax and fee hikes for utilities, waterworks and other expenditures are included, the actual taxes on a home worth $291,000 will rise $65.
Last year, an election year, Burnaby property owners paid a tax hike of about 1.95 per cent.
Johnston said this year's budget takes into account "significant downloading" from the province, in particular the loss of revenue from the closure of the Burnaby courthouse, while paying for city employee and RCMP pay raises.
The operating budget, which equals $237.5 million, allows for a new union contract for employees, plus the hiring of six new full- time staff positions.
While residential properties account for about 78 per cent of the taxable land in Burnaby, homeowners will only pay about 46.7 per cent of the taxes. That's because business, which accounts for 18 per cent of the land value in the city, will pay 40.7 per cent of the tax load.
Rookie councillor Pietro Calendino pointed out that a one per cent cut in the budget would have taken $1.3 million out of the financial plan and resulted in some job losses.
Actual spending in the city will increase more than $11 million, about 4.9 per cent, from $226.4 million in 2002. Besides taxes, city hall expects to make up much of the difference by raising a variety of fees in various departments.
On the capital spending side, Burnaby expects to spend $74.7 million on various projects. The largest amount set aside is $9 million for parkland acquisition around Brentwood Town Centre, and $8 million for work on Burnaby Lake rejuvenation, the latter of which is subject to receiving grants from other sources.
Other capital projects include the first half of a total $4.4 million cost of work on the new No. 2 fire hall on Edmonds Street, about $1.8 million towards the cleanup of the gun ranges on Burnaby Mountain and $2.5 million of the total $21.5 million cost that will eventually turn the new Southridge Drive/Tenth Avenue connector into a four-lane arterial standard.
The replacement of aging infrastructure is another major cost. The budget sets aside $5.7 million for sewer replacement and $4.9 million for waterworks maintenance.
According to city staff, the only lower tax increases in the region will be seen in Delta and Surrey, which are proposing tax hikes of two and 2.9 per cent respectively. New West agreed to a 2.1 per cent tax hike, after initially debating a 3.1 per cent hike.
Vancouver is raising its taxes by 4.67 per cent and Richmond taxes are rising 4.35 per cent.