The District of Taylor’s Committee of the Whole had four proposed taxation rate options for 2024 to consider, in order to provide the District with a balanced financial plan for the coming year.
Late in 2023, the COW reviewed and considered the preliminary financial plan presented to them, and in the face of the original financial plan’s deficit, directed District staff to review and update revenue projections; consider reducing municipal operational expenditures by one or two percent; allocate 100 percent of interest revenue to cover municipal operations, until financial strategy deliberations can take place; and amend debt expenditures to be equivalent to the amount paid in 2023.
The 2024 Proposed Tax Rates report presented to council stated that if the District proceeded with the proposed 2024 financial plan, with the changes requested, a minimum taxation increase of 5.4 percent over 2023 was needed to balance the financial plan.
The four options for tax rate increases would meet these objectives.
Option 1 was to maintain 2023 tax rates for 2024, an option that would not balance the financial plan and projected a funding shortfall of $86,000. Tax revenue proposed to be collected from Option 1 would cover 46.42 percent of the proposed operating expenditures for 2024.
Option 2 was a proposed tax rate increase of 5 percent, across all assessment classes. Taxation revenue from this option covers 48.74 percent of the current proposed operating expenditures. This option would address the financial plan shortfall and provide a surplus of approximately $114,000.
Option 3 was a proposed 4 percent tax rate increase, evenly across all assessment classes, and would cover 48.28 percent of the proposed operating expenditures. Like Option 2, it would address the shortfall and provide a surplus of approximately $74,000.
Option 4 proposed an increase in the tax rate across all assessment classes of 5 percent, except major industrial which would remain at the 2023 rate. This option would cover 47.44 percent of the proposed operating expenditures for 2024, address the shortfall and provide a surplus of approximately $2,000.
Options 2 to 4 meet the current taxation objectives, the report stated, and increase the percentage of taxation revenue needed to support the District of Taylor’s operations at the desired level of service.
As the proposed options meet existing budget obligations and support financial stability, they all reduce the reliance on government grant funding and thus reduce risk. All of the proposed taxation rates are lower than the 2023 Peace River Regional District average tax rates, excluding major industry, the report noted.
Although the report recommended that council proceed with Option 4, Council voted to proceed with Option 2, the 5 percent increase in the tax rate for all assessment classes.
Now that Council has approved in principle the 2024 Tax Rates, there will be a final review of the 2024-2028 Financial Plan and 2024 Taxation Rates on February 20.
This will be followed by Industry and Public Meetings to review the proposed Financial Plan and Tax Rates, along with the first three readings of the 2024-2028 Financial Plan Bylaw on March 4, provided no significant changes are proposed. The District of Taylor will issue a notice shortly on the expected date of the Public Budget Consultation Meeting.
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