Banff residents look set to see a 5.34 per cent tax increase.
Despite several failed attempts by councillors Ted Christensen and Peter Poole to cut back the 2018 operating budget on Monday (Jan. 8), council affirmed a budget with a 5.34 per cent tax increase.
Capital and operating budgets return for final discussion and approval, Monday (Jan. 15). The overall yearly increase will be $130 on an average residential dwelling, or $10.91 a month.
Mayor Karen Sorensen said she believes the 5.34 tax increase is fair, noting about two per cent of the increase is going to public transit.
“I don’t believe our taxes are too high. I think we get good value for our tax dollars,” she said.
“I encourage council to spend a little bit of time looking at that $10.91 cents a month and maybe not spend so much time on the 5.34 percentage.”
Poole said at this rate there would be a 170 per cent tax increase over 10 years.
“Where I’m concerned is not what it’s going to do to the person who’s the average homeowner spending $2,000, I’m concerned what it’s going to do to the $15 an hour wage earner,” he said, noting he doesn’t think that wage will be $25 an hour in 10 years.
“What we’re doing tax-wise is increasing the burden on them more than the increase in their disposable income, and I’m working really hard to try and sharpen my pencil and say some of the things we’ve got are discretionary.”
Hugh Pettigrew, who lost his run for mayor to Sorensen in the 2017 municipal election, was at the budget meeting and said a 5.34 per cent tax increase is too high, noting taxpayers have seen a 23.8 tax increase in the past four years.
Given ongoing tax increases, he also said council should consider adjusting the commercial mill rate to slightly increase the ratio to have less of a burden on residential taxpayers.
“In my opinion, the budget as proposed as-is is too much of an increase,” he said.
“Banff does not have a revenue problem. We have a spending problem. Let’s live within our means.”
About two per cent of the 5.34 per cent overall tax hike in the draft $40 million budget is going to public transit to deal with traffic congestion and parking problems.
Total budgeted expenditures for transit in 2018 are about $1.532 million. Passenger revenue is forecast to $129,950.
New for 2018 is $487,000 for increased bus frequency and extended hours and days on Roam routes 1 and 2, as well as funds to continue the Calgary-Banff On-It bus service with extended days.
Christensen and Poole wanted to push back additional spending to increase bus frequency from 2018 to 2020.
“I’m concerned with the bottom line,” said Christensen, saying he was prepared to have discussions on paid parking to help fund transit rather than have taxpayers subsidize.
Coun. Grant Canning said he couldn’t support that.
“I don’t think we should be scaling back transit. I strongly argue transit saved us this summer,” he said, noting 1.3 million riders took transit options in the Bow Valley in 2017.
“I believe we should not only be increasing transit frequency, but we also have to work long-term towards making it free.”
Other new items in the operating budget include $53,300 to continue with a marketing campaign, in conjunction with Parks Canada and Banff Lake Louise Tourism, to get visitors out of their vehicles and onto public transit.
There’s also $80,000 for a planning position for the planning and development department.
In addition, there were unsuccessful attempts to push some capital projects back to 2020, such as $1 million worth of bus shelters, $7 million transit bus storage and $353,000 for the Legacy Trail extension on Banff Avenue.
Councillor Chip Olver was unsuccessful in her attempt for an additional one per cent tax to increase transfers to capital reserves.
