Penticton city council wrapped up 2020 budget discussions on Dec. 12 after three full days of deliberating. Council voted to approve the staff recommended 2.9 per cent tax increase and an increase to the business tax multiplier. (Photo from Google Maps)

Penticton city council wrapped up 2020 budget discussions on Dec. 12 after three full days of deliberating. Council voted to approve the staff recommended 2.9 per cent tax increase and an increase to the business tax multiplier. (Photo from Google Maps)

Penticton council approves 2.9 per cent tax increase in 2020 budget

Council will vote in the new budget at an upcoming meeting in the new year

After three days of deliberating, Penticton city council went with the staff recommendation and approved a 2.9 per cent tax hike in the 2020 budget.

Council was in budget discussions from Dec. 10 to 12, breaking the budget down by each city department on day one, municipal grants and asset management on day two, and a recap and final decisions on the last day.

This increase amounts to an additional $73 per year for a residence valued at $500,000 and $870 per year for business properties valued at $1.18 million.

Council also went with the staff recommendation to increase the city’s business tax multiplier to 1.83 in 2020, and then 1.91 in 2021, to the dismay of the Penticton & Wine Country Chamber of Commerce, who issued a statement against the hike on the last day of discussions.

READ MORE: Penticton & Wine Country Chamber of Commerce concerned about proposed business tax hike

The increase leaves the tax multiplier below the Canadian Federation of Independent Business’s recommendation of a no more than two per cent, while the average in the Okanagan Valley was at 2.28 per cent in February 2019.

Mayor John Vassilaki defended the increase, stating it was meant to give residential property owners a break.

The city is also putting $3.9 million toward its current debt of $31 million in 2019.

During the deliberations, council also had to make some tough calls and deny about 55 per cent of applications received for municipal grants.

City staff said the city saw an increase in the funding amount requested through applications this year, with 43 applicants seeking $993,000 in total.

READ MORE: Penticton city council forced to make tough calls with grant applications

Altogether, city council doled out $507,000 through municipal grants, while denying $457,000 in other requests.

Council will vote in the 2020 budget at a meeting in the new year.

To report a typo, email:

Jordyn Thomson | Reporter
Send Jordyn Thomson an email.
Like the Western News on Facebook.
Follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Pacific Coastal Airlines photo)
Potential COVID-19 exposure on March 1 Penticton flight

Interior Health lists a public exposure for the Pacific Air Flight from Vancouver on March 1

The Town of Osoyoos is looking into allowing two food trucks at the downtown plaza over the summer, which would require updates to several town policies and bylaws. (Kevin Clark - Black Press Media File)
Osoyoos council to weigh allowing additional downtown food trucks

The proposal would be aimed to benefits the summer’s downtown plaza

Seniors in the Interior Health region can book their COVID-19 vaccinations starting Monday, March 8, 2021 at 7 a.m. (File photo)
Seniors in Interior Heath region can book COVID-19 shots starting Monday

Starting March 8 the vaccination call centre will be open 7 a.m. to 7 p.m. daily

(Baldy Mountain Resort / Facebook) 
(Baldy Mountain Resort / Facebook)
Baldy Mountain calls out snowmobilers for damaging ski hill

The Resort is fed up with snowmobilers running across their trails

C.E. “Ned” Bentley owned a garage on Shaughnessy Avenue, now Lakeshore Drive in Summerland. Bentley later went on to serve on Summerland’s council and was recognized with the Good Citizen Award in 1939. (Summerland Museum photo)
Former Summerland reeve once ran garage

C.E. “Ned” Bentley was a prominent figure in Summerland’s past.

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Multiple people were injured at a Vernon home following an early-morning break-in Saturday, March 6, 2021. (Black Press file photo)
Multiple people left injured following break-and-enter in Vernon

Police believe the early-morning break-in was targeted and not a threat to the general public

Kelowna General Hospital (File photo)
Second COVID-19 outbreak declared at Kelowna General Hospital

One patient and one staff member on Unit have tested positive for the virus.

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

A Coldstream resident who found an owl struggling on her property in March 2021 is now spreading awareness of about the knock-on effects of rodent poisoning. (Kathy Renaud photo)
Okanagan owl ‘fighting for her life’ after ingesting rat poison

Coldstream resident warns against the use of rodenticide due to risk of secondary poisoning in raptors

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Fire ripped through a mobile home on Boucherie Road in West Kelowna on March. 6. (Phil McLachlan - West Kelowna News)
‘My whole life just went up in smoke’; Fire consumes Okanagan mobile home

RCMP confirmed that there were no injuries due to the fire

Most Read