City of Cranbrook council last night unanimously approved the first three readings of Tax Rates Bylaw No. 3929, 2018 and city taxpayers can expect an average 2.67% increase this year.

The tax rates bylaw will be up for adoption by council at a special meeting on Thursday, May 10, at 3:30 p.m. at City Hall.

Property assessments increased in the city last year. In 2018, the properties within the city’s boundaries have a collective assessed value of $2.64 billion (2017 – $2.54 billion).

“In Cranbrook, the 2018 residential and business class average assessed values increased 3.076% and 3.621% respectively over 2017. These increases are not representative of all the properties within each of those classes. Values do not necessarily move in the same direction for all properties within a class. Some neighbourhoods and businesses have seen their assessed values rise while the assessed values of other properties have declined. Repairs and maintenance done to a property can increase its value above similar neighbouring properties. Location and overall neighbourhood improvements can also affect values. In the case of a business, reclassification to a more profitable type of business can impact the assessed value,” reported city financial officer Charlotte Osborne.

For 2018, the city’s budgeted revenues (and expenses) are $59.7 million, up over 2017, which was $58.3 million.

The general municipal property tax levy of $26 million represents 43.5% (2017 – 43%) of all the funds required to operate the city and provide valued services to its residents.

Included in the $26 million municipal tax levy, is the 2018 Road Dedicated Tax of $1,969,852, also up over 2017, which was $1,716,899.

“The proposed municipal tax rates have been developed with the objective that the tax levy for each of the major classes – residential and business – increases by the same percentage as the overall tax levy. For 2018 the city’s overall tax levy increase is 2.69% (2017 – 2.75%) after adjusting for non-market change,” Osborne stated in a report to council.

“The general municipal property tax increase (excluding school and other non-city property taxes) for a residential property in 2018 will be approximately 2.67% unless the property’s assessed value increased or decreased by more than the average increase of 3.076% for the class.

“Based on the average increase, a residential property valued at $300,000 in 2017 would have an assessed value of approximately $309,228 in 2018.

“The tax rates proposed by this bylaw will raise the $26,110,789 in general municipal property taxes required by the City of Cranbrook 2018-2022 Five Year Financial Plan. The 2018 tax levy represents an increase of $678,714 over 2017 (2.69% after adjusting for non-market change of $164,418 [2017 – $165,200]).”

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