Osoyoos sharpens pencils
After another round of pruning this week, Osoyoos council trimmed its proposed 2024 tax increase to 10.9%.
When combined with planned hikes in sewer and water rates, the overall increase for the average Osoyoos property owner would be 23.7%.
That’s down significantly from the 39% overall hike -- which contained a 13.6% tax increase -- that was initially approved by council in late 2023 and kicked off a series of protests and public meetings that forced elected officials to sharpen their pencils.
Approximately $11 million was trimmed from the operating budget, mainly through deferrals and reallocations, at a special meeting Feb. 15.
Council cut a further $315,000 at a special meeting Tuesday night by eliminating the planned purchase of six smart manhole covers for $115,000, deferring the $100,000 purchase of two new fleet trucks, reducing by $50,000 the budget for a new executive assistant, and trimming by $50,000 the budget for a redesign of office space.
The only cut proposed Tuesday that didn’t pass was a move to reduce the town’s annual contribution to its amenity management plan from $1.4 to $1 million, which would have reduced utility rates.
Some councillors suggested such short-sighted thinking is what got Osoyoos into its current mess, with failing water and sewer systems that will require tens of millions of dollars’ worth of improvements.
“Part of the reason why we’re in this situation right now is because 10, 15 years ago, municipalities like ours should have been planning for the future… and it didn’t happen to the extent it should have and we’re paying for it now and we’re going to be paying for it in the future,” said Coun. Zachary Poturica.
“Every cut that we make today is going to prolong us pulling off that BandAid and it’s going to hurt more and more and more. It’s going to delay us from doing what we need to do, to address the issues on water, to address the issues on our wastewater treatment,” he continued.
“We can’t continue to ignore that these issues exist. I know that was a habit previously. It isn’t going to be a habit of this council and it shouldn’t be a habit going into the future.”
Fresh estimates aren’t yet available of the impact of Tuesday’s budget changes on local property owners.
With a 24.9% overall increase in taxes and utilities -- 1.2% more than is now on the table -- the average residential property owner’s bill would have increased $940 to $4,792 this year.
Council is due to give third reading to the budget at its next regularly scheduled meeting March 26.
If approved as planned, Osoyoos’ tax hike would still be about double what’s been approved in neighbouring communities for 2024: Oliver has approved a 5.5% hike, Summerland has penciled in a 5.4% bump and Penticton has scheduled a 5.3% increase.