Williams Lake city council adopted their 2024-2028 financial plan and new tax rate, despite a surprise amendment put forward and some heated debate.
A three per cent tax rate increase will go ahead, despite a last-ditch curveball thrown by Coun. Scott Nelson during the April 16 regular council meeting.
As council went to vote on the financial plan, Nelson brought forward a proposed amendment to instead change the plan to a zero per cent tax rate increase by utilizing a dividend from the Williams Lake Community Forest.
According to staff, the previously elected council had voted to set community forest dividends aside into a reserve for future capital expenditures and not use them to reduce taxes.
The $882,500 dividend amount had therefore been set aside, as per previous council direction and as part of the financial plan. The city does not know ahead of time how much the community forest will pay out in a given year, but it is a part of the financial planning.
But Nelson suggested the income, which he characterized at the meeting as a grant, be allocated partially towards reducing the tax rate increase to zero, then allocating $200,000 towards improvements to the Highway 20 corridor through the community for active transportation, and the remainder towards the water treatment plant.
Nelson said setting the money aside for improvements to Highway 20 would show commitment on the part of the city.
Coun. Joan Flaspohler spoke against the proposed amendment, noting the budget and tax rate had already been through multiple rounds of discussion as well as public consultation and pointed out the Highway 20 improvements are not yet even at the design stage, so construction is likely a long way off.
Flaspohler said the city did not have a lot of community members come forward during the budget consultation period in opposition of the rate increase and questioned Nelson’s motivation for pushing so hard for a zero per cent tax rate increase.
She said the 37 properties within the taxation area on Nelson’s disclosure statement have been pointed out to her by community members as representing a possible conflict of interest on his part, though she said ultimately this is decided by the voters if they choose to continue to support him.
Coun. Sheila Boehm defended Nelson, saying the community has voted for him many times.
“I think we can take that out of the equation,” she said.
Boehm went on to credit the previous council with the solid financial state of the community, noting some things may have been put off, but like a homeowner, the city must choose when to do some things and defer others.
Nelson responded to Flaspohler’s comments on his properties by pointing out Flaspohler doesn’t own any property within the city.
“All I’m trying to do is take some pressure off the little guy,” he said.
Nelson asked Kozubenko what a one per cent increase means for the city budget, who responded it would be about $75,000.
Nelson later said he thinks he likely now owns more than 37 properties within Williams Lake because he continues to buy more.
“I believe in Williams Lake, I keep investing in Williams Lake,” he said.
Coun. Jazmyn Lyon spoke in support of the plan and tax increase, noting she doesn’t love having her taxes go up, but she sees the practical need to keep up with inflation.
Mayor Surinderpal Rathor also spoke in support of the three per cent increase, noting he knows times are tight, which is why he voted for the lower rate increase out of the options put forward during budget discussions. He noted the water treatment plant was priced out at $10 million five years ago, a project now budgeted at $25.3 million. He questioned whether the final cost will even be within this budgeted amount.
Nelson’s proposed amendment was defeated, with Nelson and Boehm voting in favour of using the community forest dividends to reduce taxes, and Moses, Lyon, and Flaspohler voting against.
The vote tally was reversed when voting in the 2024-2028 financial plan and tax rate, with Moses, Lyon, and Flaspohler voting in favour. Nelson and Boehm voted against.
Coun. Angie Delainey was absent from the meeting.
Adoption of the bylaw, which had already been passed by council at a Feb. 13 regular meeting, after budget deliberations means the mill rate to calculate property taxes in Williams Lake will increase by three per cent. The mill rate is applied to the property assessment, which will vary for each individual property.
According to the report by Vitali Kozubenko, chief financial officer for the city, the average actual increase in the city will be six per cent, based on the average increase in assessed value.
READ MORE: Williams Lake narrowly passes 6% tax increase for 2024
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