Word has come recently that Delta taxes will go up by 1.9 per cent. Of this increase we are told 0.9 per cent is to go for general municipal services and one per cent is for a significant increase in road improvements. Three cheers for Delta council keeping the taxes down.
Looking forward, council has an objective to reduce the revenue portion from property taxes over time. Now contributing 54 per cent of revenues, the plan, however, suggests it will increase to 58 per cent despite their efforts to hold it at 55 per cent. Still on the taxation side, utility flat rates will increase by $15 from $915 - a jump of 1.6 per cent.
Delta plans to spend/commit $260 million. Of this, $113 million will come from taxes you and I pay and $56 million will come from fees (such as what you pay at recreation centres). Developers, TransLink and B.C. (for roads) as well as police traffic fines will contribute about another $32 million.
Over the next four years the growth in our municipal expenses is projected to be about 11 per cent.
The Corporation of Delta says it plans to spend $172 million on "operating" and $87 million on "capital." Operating expenses pay for salaries, property upkeep and expenses for cars, trucks and equipment, police and fire. This will also include drainage improvements on agricultural land.
It's quite confusing when you look for details and find that while something close to 60 per cent of the money comes from taxes, 40 per cent of the cost of operations are drawn from funds other than taxes (such as fees, development cost charges and permits).
Capital expenses of $87 million include a wide range of projects, including neighbourhood roads, improved access for transit, pedestrians and bicycles, Boundary Bay Airport, interchange traffic signal improvements, Ladner sports field enhancements, dog off-leash areas and a design for a new airport fire hall. All of this is to be financed by current year's taxes and fees.
Each year council sets aside a "rainy day fund" of about $10 million for unplanned and unforeseen expenditures. The plan for 2013 is to spend that plus $2.2 million from last year's surplus, the largest item being a further $1.1 million for the Harris barn refurbishment.
For those of us feeling taxes are high or too high, you should know that in 2003 council determined to no longer pay for capital improvements/expenditures over their life. Instead, these items are paid for up front by taxes and levies.
As a result, our long-term debt is going down as old debts mature. From a $60 million debt in 2001, council plans to reduce it to zero by 2022, with $11 million outstanding at December 2011.That should save us about $7 million per year in taxes, or a reduction of about seven per cent.
But why pursue that plan so quickly? Why not eliminate the tax increase this year and pay off old debt a bit more slowly? Seniors and those struggling would appreciate that.
My hat goes off those who struggle over the budgets. There is a great temptation to spend more of my money!
