Tax increase too much?

Kelowna taxpayers are being asked to pay an additional 3.47 per cent on their 2015 tax bill.

The increase is part of the city's proposed 2015 financial plan released Tuesday.

It includes total taxation spending of $112.8M, an increase of $7.3M over 2014.

In his budget introduction, City Manager Ron Mattiussi says the overall budget includes a 1.7 per cent increase for city operations and a 1.77 per cent increase to cover the first year of borrowing for the new $46M RCMP building.

It also includes additional revenues of about $150,000 from new construction and nearly $1M as a result of a revenue review by the BC Assessment Authority.

Despite a nearly 3.5 per cent increase, Mattiussi says the proposed budget doesn't offer much in the way of new goodies.

For the most part he says it's realistically a stand-pat budget.

"I think this is a... let's take this hit and lets try to get through the year operationally the best we can to not impact our citizens," says Mattiussi.

"Stretch out some decisions, not fix things that we should be fixing - give it another year and just sort of hold on for another year.

Much of the 1.7 per cent increase for city operations will go towards satisfying the new CUPE contract and an additional $1.M for RCMP and protective services.

Mattiussi admits he does have one concern over the budget number.

"I'm concerned because we get inundated with publicity by the Canadian Taxpayers Association, the Canadian Federation of Independent Business asserting that taxes should be held at inflation or under," says Mattiussi.

"That is not realistic. I think taxes go up and down like other things in our life and if you build a $50M police building, taxes are going to go up for a few years as you take that and put it in."

Mayor Colin Basran received a copy of the lengthy document Monday and, while he admits he hasn't had a chance to go over it in detail, he believes the proposed increase is not out of line.

"You have to remember that this budget is a little different than any we have seen in at least the last three years in that we have an RCMP facility that will now start taking up the funds, hence that's why the increase seems bigger than normal," says Basran.

With 1.7% of the proposed 3.47% increase going to city services, Basran says a significant reduction in that number would likely mean a reduction in services.

"If we are going to cut it down further it is probably going to have to be a cut in services and I personally don't believe a cut in service is what's best for the city.," says Basran.

"Most people I spoke to said they were comfortable with a cost of living increase. So, when you factor out the RCMP facility, to continue existing services we are basically at just below a cost of living increase."

For the owner of an average home assessed at $467,000 the proposed 3.47% increase means an additional $60 in municipal taxes.

City Council will debate the budget line by line Thursday, Jan 15.