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Dec 8,2009 Tri City News

The average Coquitlam homeowner will pay approximately $182 more on their property tax and utility bills this year than in 2009.

Council approved the first three readings Monday for the city’s 2010 budget, which will see an average property tax increase of 4.96%.

Water, sewer, drainage and solid waste rates are also increasing, which means the owner of a home with the statistically average assessed value of approximately $500,000 will pay a total of $2,541 in taxes and utilities this year.

Because of the city’s contractual obligations and cost pressures resulting from the economic downturn, Mayor Richard Stewart said, higher taxes were unavoidable.

“Unfortunately... a tax increase is inevitable,” he said. “But council and staff have worked diligently to minimize the increase and protect as many of those services as we can.”

Following the economic downturn many construction projects in the city were put on hold, leading to a drop in expected development cost charges of close to $5 million. Lower interest rates have also hurt the city as its financial reserve has not produced the same return it has in the past.

Stewart said many capital projects have been held back for future years and city staff positions have been kept vacant in order to save money. Discretionary spending has also been tightened and the city has taken a “time-out year” in its long-term plan for adding RCMP officers.

The city has also set aside $150,000 for a byelection, which will be necessary this year after former councillor Fin Donnelly was elected NDP MP for New Westminster-Coquitlam.

While the 4.96% increase is not ideal, many councillors said they are confident the financial plan strikes a balance between maintaining services and keeping taxes low.

“I certainly don’t like to see [the tax increase] at 4.9% but the alternative was to cut... in areas that are quite important and I don’t think that would be in the best interest of the city,” said Coun. Barrie Lynch.

Coun. Selina Robinson echoed some of Lynch’s comments, saying, “I hear consistently that taxes are too high, but where should we go without?

“I will support it. It is a tough pill to swallow but I don’t know if we had any other options.”

Coun. Brent Asmundson said the city is conducting several reviews to find efficiencies in its departments. Three departments have already undergone the review process and more are expected this year, he said.

“It is not just about cutting things,” Asmundson said. “We are going out through the whole city over time and looking at how we can find efficiencies in our operations.”

According to the financial plan report to council, tax increases from 2011 to 2014 are expected to range between 3% and 5%.

Only Coun. Lou Sekora opposed the financial plan, telling council he believed the tax increase is too high.

gmckenna@tricitynews.com

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