Port Moody homeowners will be paying an additional 5.34% for their property taxes this year, an increase of $91 for the average home valued at $547,500.
Council passed first three readings of its five-year financial plan and property tax rates bylaw at Tuesday's meeting - but not without more squabbling over the police budget.
Coun. Gerry Nuttall took issue with how $155,000 had been cut from the police department's budget, a directive council had issued in a meeting earlier this month. Staff had listed the cut as an unallocated adjustment, with the particulars to be determined by the police board at a later date, "which I think is a very poor example of sound financial planning," Nuttall said, a concern that was later echoed by Coun. Rick Glumac.
Mayor Mike Clay said the board was scheduled to meet later this week and would pinpoint the cuts then, a move Nuttall said should have already happened in the three weeks since the committee of the whole voted on the $155,000 budget cut.
After a lengthy discussion, council agreed to pass first three readings and directed the police board to report back with a properly amended financial plan before the next council meeting.
Of the 5.34% property tax increase, 2.1% comes from general government while the Port Moody Police accounts for 1.74%. The asset renewal levy adds 1% and the fire hall debt levy adds 0.5%.
Nuttall called the rapidly increasing cost of the police department "unsustainable," noting the PMPD accounts for 31% of the city's budget while in other cities with municipal forces, the proportion is closer to 20%. Combined with the fire department costs, emergency services in PoMo eat up half the overall budget, Nuttall said, adding the city may soon reach a point where it will be unable to pay for other services residents want.
"An increase of over 5% is too high when so many people are struggling to make ends meet," added Coun. Zoe Royer. She was the lone council member to vote against the budget (Coun. Bob Elliott was absent).
As it stands, the budget is growing by just over $1.5 million over 2012. Most of the increase comes from salary and wage increases ($730,000), the asset renewal levy ($285,500) and the fire hall debt levy ($143,500).
Major capital projects for 2013 include upgrades to the storm and sewer system ($1.5 million) and the water system ($1.8 million), Moody Street overpass upgrades for the sidewalk ($750,000) and seismic upgrade ($500,000), recreation centre improvements ($382,500) and Westhill Pool projects ($220,000).
Utility charges for 2013 are staying the same and, when combined with the property tax increase, result in an overall rate hike of 3.38% for homeowners.
Tax increases for 2014 to 2017 are estimated at 2.5% each year.
Council has until May 15 to adopt the budget.
