Port Coquitlam city council continues to crunch the numbers for this year's budget, with the aim to keep property tax bills low.
At Monday's finance and intergovernmental committee meeting, the majority of council voted to remove the 1.79% inflation rate it had set last May.
Coun. Dean Washington, who chairs the city's budget subcommittee, said the inflationary hike was too high and many factors - such as price of fuel - have changed since the rate was adopted.
As a result of the vote, which was opposed by Mayor Greg Moore and Coun. Darrell Penner, the base budget for 2015 has been reduced, meaning a drop in the proposed tax increase from 1.3% to 1% - a reduction of about $449,000 that was calculated to pay for materials, contracted services and reserve transfers.
The proposed 1% tax increase (or $19.78 for a home with the averaged assessed value of $527,408 in 2014) - which may go up or down depending on future discussions with the community - has been allocated to pay for long-term infrastructure for future replacement of roads, water and sewer systems and buildings, for example.
According to PoCo's treasury department, the city's costs are expected to be $712,500 higher this year. While the municipality has budgeted to receive an additional $1.15 million in tax revenues, $102,800 in other income and $500,000 from MMBC for recycling collection, it will also likely face extra expenditures for its projected $91.2-million budget, including:
$1.16 million for staff;
$530,600 for other contracts (FVRL, RCMP);
$449,300 for inflation;
$128,400 for new capital projects;
and $546,000 (or 1%) for infrastructure.
Coun. Mike Forrest, who successfully moved a motion to have the inflationary rate removed from the base budget, with Coun. Brad West seconding, said he also was "uncomfortable" with the rate given the city's financial pressures.
Washington also said the city needs to tighten its belt further with suppliers. Contracts for items such as photocopying are too high, he said, and increase the bottom line for taxpayers.
The draft budget is due to be released on Feb. 2. The deadline for public feedback is set for Feb. 23.
@jwarrenTC
