Ladysmith council keeping residential tax increase below five per cent

As it stands right now, the average homeowner in Ladysmith will pay an additional $62.71 in municipal tax.

It’s two weeks before the Town of Ladysmith’s financial plan and tax rate bylaws must be adopted, and as it stands right now, the average homeowner will pay an additional $62.71 in municipal tax.

Ladysmith council looked over the town’s 2012-16 Financial Plan last Monday.

“This is the same financial plan that was presented to council last year, with the exception that 2012 has more specifics,” explained city manager Ruth Malli. “This is the best information we have at this time, taking into consideration all the capital projects that are planned. That’s a really big-picture view.”

The overall property tax impact across all taxation classes in Ladysmith is a 2.58-per-cent increase. Town staff were instructed to keep the residential increase below five per cent, and it has come in at 4.58 per cent. Commercial taxes are increasing two per cent, and there is no increase to industrial tax.

In 2011, the average assessment for a single-family home in Ladysmith was $303,000. In 2012, reflecting a market adjustment, the average assessment is $296,607. That’s a two-per-cent drop in assessments.

For the average home in 2011, the municipal tax levy was $1,260.96. In 2012, the average home tax levy will be $1,323.67, which is an additional $62.71.

“Seventeen cents per day is the change to the average home,” said Malli.

The town also collects taxes on behalf of other agencies, such as the Cowichan Valley Regional District [CVRD].

“These will be on the tax bill, but we have no control over them,” said Malli. “So when the taxpayer says the tax increase is different for their particular home, generally it’s a result of other taxing agencies that increase their taxes.”

The town did not know the school tax yet, but the total requisition for the Municipal Finance Authority went up $1 from $255 in 2011 to $256 in 2012, and BC Assessment dropped $2,557, going from $86,314 in 2011 to $83,756 in 2012. The CVRD’s total requisition increased from $681,104 in 2011 to $728,771 in 2012. The largest increase in total requisition comes from the Cowichan Valley Regional Hospital, which is rising from $370,862 to $450,665 to save money for a new hospital, noted Mayor Rob Hutchins, adding this increase works out to about $20 per household.

For 2012, there is no change in the water parcel tax, as it stays at $100. The sewer parcel tax is increasing $115 from $154 in 2011 to $269 in 2012 to accommodate upgrades from primary treatment to secondary treatment.

When asked how Ladysmith has approached its budgeting, Hutchins noted that, compared to federal and provincial governments that need to take major steps to address operating debt, municipal governments are not allowed to accumulate operating debt.

“Provincial governments across Canada are faced with how do they deal with these massive operating debts … so they’ve had to take some significant steps to deal with that debt,” he said. “Local government has never been allowed to accumulate operating debt, so in our budget deliberations, we do service requests, expansion of operations because of increased population, and in some cases, downloading from the provincial and federal government, such as RCMP costs.”

Looking at the 2011 tax levels, of the 36 municipalities on Vancouver Island, Ladysmith was below average, explained Hutchins.

“Of the 16 below us, three of those — Campbell River, Port Alberni and North Cowichan — have had to face significant rate shifts so they will probably be above us,” he said. “The vast majority of other communities don’t have to pay for policing, and we pay for policing. I believe none of those communities  have swimming pools. If you take a look at the comparative rates, I think we have done quite well because we are below average, and yet we have two significant costs that most communities below us don’t have, which is policing and an operational pool. The most expensive recreational facility to operate is a swimming pool.”

Hutchins pointed out that North Cowichan is facing the largest single tax shift in the area, at $275.

The Canadian Federation of Independent Business’s BC Municipal Spending Watch ranks overall operating and spending per capita, as well as operating and spending per capita based on growth, and Ladysmith is ranked 131st out of 153, with 153 being the best, added Malli.

Just Posted

A conceptual rendering of the commercial plaza at 1130 Rocky Creek Road. (Town of Ladysmith/June 15 Council Agenda)
Rocky Creek commercial plaza passes public hearing

The proposed plaza at 1130 Rocky Creek Road would bring commercial activity to Ladysmith’s north end

Kate Cram and her team at Old Town Ice Cream are thrilled to be open for business. (Cole Schisler photo)
Old Town Ice Cream opens up right on time for summer

Located at 539 1st Avenue, Old Time Ice Cream is open from 10 a.m. to 7 p.m. daily

Things are looking up for Vancouver Island as zero COVID-19 cases have been reported for the first time since October. THE CANADIAN PRESS/Darryl Dyck
Island records zero new COVID-19 cases for the first time since October

For the first time since October, the province is reporting zero new… Continue reading

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

Volunteers Alex Cook, Ron Dashwood, and Bill Drysdale have been hard at work restoring the old Ladysmith train station. (Cole Schisler photo)
Train station restoration on track for future community open house

Community is asked to give feedback on what they think the best use is for the station

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Gwen Spencer Hethey with her uncle and mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
‘She was a killer’: The B.C. woman who pioneered female sharpshooting

Gwen Spencer Hethey made military men ‘look like turkeys’ says her son

Central Okanagan Grade 12 grads are set to get $500 each after a more than $1 million donation from a Kelowna couple. (File photo)
B.C. couple donating $500 to every Grade 12 student in the Okanagan

Anonymous donors identified as Kelowna entrepreneurs Lance and Tammy Torgerson

Rita Coolidge played the main stage at Vancouver Island Musicfest in 2017. (Black Press file photo)
This year’s Vancouver Island MusicFest to virtually showcase beauty of Comox Valley

Returning July 9 through 11 with more than 25 hours of music performances

Most Read