Just because average property values for single-family homes are up 21% doesn’t mean property taxes are up 21%, according to the City of Cranbrook.
City Council approved a tax levy increase of 2.75% during discussions on the 2022 budget, which is broken down into a general increase of 1.75% and a dedicated road tax of 1%.
According to BC Assessment, a typical single-family home in Cranbrook has gone from an average value of $327,000 in 2021 to $397,000 in 2022. Based on this year’s average values, a 2.75% increase in tax levies results in a $63 increase for a single family of $397,000. house, according to the city’s finance department.
“Under the proposed budget for 2022, the total increase in municipal tax levies is 2.75%,” confirmed Charlotte Osborne, Chief Financial Officer for the Town of Cranbrook. “Those whose assessment has increased more than the average will see their taxes increase by more than 2.75%. Conversely, if a homeowner’s assessment were below the average 21% increase in Cranbrook, the owner would see less than a 2.75% increase in their annual property taxes.
The 2.75% increase in the City’s tax levies affects only the municipal portion of a property owner’s tax bill. The increases may be due to other factors such as varying tax rates for School District 5, East Kootenay Regional District, East Kootenay Regional Hospital District and the British Columbia assessment.
Cranbrook’s 2.75% tax increase is in the lower range of other municipalities, according to the city. By comparison, Creston is proposing a 3.65% increase, Kimberley is considering a 4.70% increase and Vernon is considering a 6.88% increase.
The 2022 budget process began in June last year, which included discussions in November to define operational and capital funding priorities, among others.
The city projects revenue of $118 million in 2022, from sources that include $30 million in property taxes, $25 million in transfers from reserves, and $21 million in transfers or recoveries from other governments.
Operating expenses are projected at $81.8 million and capital expenses are estimated at $37.1 million.
Approximately $ 18 million is forecast in 2022 for some large projects on the horizon, including the start of major reconstruction of Victoria Avenue and 4th Street N. Details of the road improvement program 2022 will be released later in the spring.
In 2021, major capital projects completed include the reconstruction of Innes Avenue and 2A S Avenue, as well as the paving of Victoria Avenue, Theater Road. and other areas. Projects carried over from 2021 to 2022 include the purchase of a fire ladder truck, the design of the Gold Creek Dam, a downtown revitalization master plan, upgrades to the lagoon seawall and the piping, among others.
A copy of the five-year financial plan proposed by the city can being seen here or hard copies can be picked up at the town hall. The city invites public comments until Friday, January 29 for consideration at a February 7 city council meeting.