The closure of Burrard Thermal is a devastating blow to Port Moody finances, the city's mayor says, and it's responsible for most of the 5.97% tax hike this year.
PoMo councillors passed a tax rate bylaw and financial plan Tuesday, pointing out that 3.77% of the tax hike property owners will pay by July 4 are due to the loss of a grant in lieu of taxes from BC Hydro for the power generating plant, worth $1.3 million to city coffers, and their tax notices will reflect this change.
Mayor Mike Clay called the shutdown unnecessary and Coun. Meghan Lahti, the finance committee chair, said without it, the 2017 the city services portion of the tax hike would have been less than 1%.
New services will cost $278,000 or 0.79% of the tax hike and will include addition of an arborist, a records manager, maintenance and operation of a new vehicle and a part-time community event co-ordinator.
Port Moody Police Department adds 1% to the tax hike, with a 1% asset renewal levy also included for the 5.97% total. When blended with utility charges, the total tax increase will be 5.24%.
The loss of the grant for Burrard Thermal arose out of a BC Hydro decision to downgrade the plant from generating power to voltage support for the power grid, with an impact on city finances equal to the mothballing of the Ioco oil refinery in the 1990s, chief financial officer Paul Rockwood told city council.
An average home assessed at $856,000 can expect to pay property taxes and utility fees of about $3,266, including the tax increase of about $121 for the year. For a $1-million home, the taxes would be approximately $3,635.
