Penticton City Hall. (File photo)

Penticton City Hall. (File photo)

Council approves reduced tax increase for 2021

Residents and business will see less of an increase than the initial budget predicted

Penticton residents can look forward to less of an increase to their taxes in 2021.

Municipal property taxes will be rising less than what was in the original 2021 budget, and there will be a three per cent reduction to the electric utility costs.

Council approved 5-1 for the amended budget in a special meeting on Dec. 10, with Coun. Campbell Watt the only one opposed. Watt opposed as he felt that the city could afford an even smaller increase for the next year.

READ MORE: Breaking down Penticton’s 2021 operating budget draft

The change came after public feedback following the approval of the 2021 budget.

“We’re a council that listens to the people,” said Mayor John Vassilaki.

Instead of a combined $164 annual increase, residents will see an average increase of $111 for the year’s taxes and utilities.

The average business will see a total increase of instead of $1,183 for the year to $1,463.

Monthly that will amount to $9 a month for the average residential property, and $99 a month for the average business.

The change from a 2.25 per cent rise in the residential tax to 1.75 percent will leave the city with a $173,301 reduction in tax revenue for the year.

Instead of reducing services, primarily in what grants the city would be able to offer, those funds would be drawn from the general surplus.

The electric reduction will be partially enabled through a lower than predicted rate increase than expected, with FortisBC raising the rates by 4.36 per cent instead of 6.37 per cent for the year.

To report a typo, email: editor@pentictonwesternnews.com.


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