9.43% property tax increased being looked at in Smithers

Smithers council have begun budget talks for 2025 with a property tax increase of 9.43 per cent currently on the table.

During yesterday’s (Tuesday) meeting, a consultant Introduced this year’s budget as the town is looking for a new Director of Finance.

The preliminary tax increase currently being looked at comes from:

• $321,100 increase in forced growth (3.39 per cent increase)
• $125,000 increase for infrastructure (1.35 per cent increase)
• $86,300 increase for RCMP funding (0.93 per cent increase)

Various ways to decrease the amount taxes would go up were also discussed.

To reduce the RCMP funding increase, it was proposed to use the surplus saved from previous years to cover this year’s increase.

Mayor Gladys Atrill mentioned it makes more sense to keep the reserve untouched.

“We’ve taken risks at our own peril, and this is a terrible time. I believe we’re going to have to go ahead and make the best plan we can, and we can adjust if we have to,” she said.

Using the Resource Benefit Alliance (RBA) funds to offset the increasing infrastructure fund was discussed.

Councilor Frank Wray questioned if the RBA funds were allowed to be used in a way to decrease the tax increase.

“It should be what it’s used for, but we’re also not allowed to use RBA to reduce taxation on an absolute basis so if we’re allowed to use it, to me that’s what RBA is for,” he said.

Chief Administrative Officer Michael Dewar said using the RBA funds would be allowed.

“The assumption is that we are allowed to use the RBA to fund that $125,000 increase annually but that would be the assumption as well that the RBA money would be annually used for that,” Dewar said.

Another option proposed was to use the taxes from new properties to offset the increase in staffing costs or infrastructure.

The next budget meeting is set for February 27th.

The final decision will be made in April.