Council defuses 'foolhardy' budget bomb— no tax break from $31 million budget surplus
CTV
It seems council is still feeling the heat from approving an 8.7 per cent tax increase earlier this year.
It seems council is still feeling the heat from approving an 8.7 per cent tax increase earlier this year.
On Tuesday, city council considered a motion to redirect some of its $31 million surplus from the 2023 budget towards a future tax break.
“Let’s look at bringing down the tax burden in 2025 - where possible,” suggested Coun. Corrine Rahman.
Rahman’s motion would split the amount of surplus dollars directed into council’s Community Investment Reserve Fund in half, leaving $3.5 million to instead be set aside along with a request to Mayor Josh Morgan to direct that money towards reducing the tax burden when he prepares his 2025 municipal budget.
The money would shave about 0.4 per cent from next year’s property tax increase.
Coun. Paul Van Meerbergen called the proposal foolhardy in a scathing rebuke, “Why it’s foolhardy is because you are setting all taxpayers up for what I’ve described before as a budget bomb.”
Van Meerbergen said one-time dollars shouldn’t be used to fund an ongoing tax reduction year after year.
