Salmon Arm residents could be looking at 5.56% tax increase in 2025

Photo: Luc Rempel

Salmon Arm council cut back a proposed 8.14 per cent property tax hike down to 5.56 per cent during the first day of 2025 budget deliberations — an increase which, if approved, would cost the average homeowner about $16.14 more than last year.

On Wednesday, mayor and councillors reviewed a draft of the year’s budget with City of Salmon Arm staff and had an opportunity to make motions for any changes.

The draft budget as laid out by city staff at the start of the day's meeting called for an 8.14 per cent tax increase, but as the day went on, council worked to decrease that number.

Councillors noted how tight the budget was this year, and said they had a desire to keep tax rates low with the uncertainty of U.S. tariffs possibly coming into effect at the end of the month.

“I think the difficulty of this budget for me is the uncertainty that's being created geopolitically,” said Coun. Kevin Flynn. “Cost of living is up, I think we need to be conscious of that, but continuing to provide value which we clearly do.”

Coun. Tim Lavery likened this year's budget to threading a needle between keeping taxes low and not compromising important city infrastructure and services.

“I don't want to throw the infrastructure and services baby out with the fiscal bathwater," Lavery said.

Mayor Alan Harrison said he would support all current and ongoing projects, but he felt it wasn't the time to start any new projects.

He pointed out Lakeshore Road improvements, wastewater treatment plant upgrades and Memorial Arena removal as major ongoing projects.

“We've got important projects out there that we're doing right now," Harrison said. “Unless that project is essential, I'm not supporting it. Not today.”

He noted the city had seen a marked decrease in monetary requests from community organizations.

“$1.6 million on specific referrals,” he said. “If we were to agree to all of them, that would add a 7.3 per cent tax increase.”

Harrison said he wouldn't be supporting many of these requests, if any.

“It's not that they're not a good idea, it's that we can't afford them," he said.

Over the course of the day’s meeting, councillors were able to trim $577,630 from the draft budget leading to the 2.58 per cent decrease from the initial 8.14 per cent tax rate increase proposed.

Savings were found by reducing amounts earmarked to be sent to reserves, as well as redirecting reserve funds from older or low priority projects towards higher priority ones.

Council is scheduled to continue working on the draft budget over the next two days, with budget meetings beginning at 9 a.m. on Thursday and Friday.