District of Tofino Considers 0% General Tax Increase in Light of COVID-19 Pandemic
Economic Impacts and Community Resiliency Top of Mind in Revised Budget
The District of Tofino recognizes the economic impact that COVID-19 has had on residents, business owners and the community at large. To provide immediate relief to property owners, Tofino Mayor and Council recently met with the District’s Management team to discuss immediate cost-saving measures while ensuring core and essential services remain available to the community now and in future years.
To minimize taxation in the first several years of the District of Tofino’s 2020-2024 Financial Plan, Council directed staff to make the following changes (explained further below):
0% general property tax increase in 2020;
The 2020 Capital and Infrastructure Levy will be reduced significantly, and fully funded from prior year’s surplus;
The District is confirming with the Province whether we can offer changes to property tax due dates; and
There will be a freeze on utility rates for 2020.
Learn More
0% General Property Tax Increase in 2020 Typically, the District increases the base amount of taxation each year by 2% to keep up with the rising costs of administration, fuel, hydro, materials and supplies, however in 2020 this tax increase will be 0%. In order to make this possible, the District has reduced budgets across all areas including staffing, travel, training and other expenditures, and as a result the community has seen a reduction in some service levels. For example, the District has closed the Community Children’s Centre and recreation programming has been cancelled until further notice.
The District of Tofino’s priority during the COVID-19 pandemic has been to maintain essential service levels, and the District continues to collect taxes for services such as Public Works, Utilities, Corporate and Financial Services, Bylaw, Planning and Development. In years 2021 to 2024 of the Financial Plan, taxation levels for general services will come back up to normal, with a 2% increase per year. These proposed increases will be reviewed annually, as the impacts of COVID-19 on future years becomes clearer.
No Capital and Infrastructure Levy from 2020 Property Taxation The District has been setting aside money each year since 2010 to save for the cost of replacing aging infrastructure. Typically shown on property tax notices as the “Capital and Infrastructure Levy” (C&I Levy), the annual amount to be collected is determined by the District’s Asset Management and Investment Plan. The C&I levy is part of a long term investment plan which includes a combination of reserve funds, debt and grants to ensure that the District is able to maintain and replace its assets.
This year, the levy has been adjusted to 10% of the proposed amount, and will be funded from 2018 general surplus, instead of property taxation. Staff is working on a gradual return to the optimal level of investment in infrastructure by 2023, and general surplus funds will be used towards a portion of the levy each year until then. The investment calculation considers a level of risk that allows for emergent events to occur that may impact contribution levels in the short term without significantly impacting the long term goals of the plan.
Tax Due Dates Property tax collection and due dates are mandated by Provincial legislation, meaning that local governments cannot alter them without approval. The District, along with other local governments, has requested that the Province allow us to offer an extension. Once we have further information, the District will establish due dates for 2020 property taxes and communicate these to residents.
Options for Deferring Your Property Taxes The provincial property tax deferment program provides low interest loans to qualified BC homeowners to pay taxes on their principal residence. There are two options under the tax deferment program: one for seniors, surviving spouses or persons with disabilities, and another for families with children.
If you think you will not be able to pay taxes on your principle residence by the due date, please consider deferring your taxes if you qualify under the program.
2020 Utility Rate Freeze The District is expecting a 35% reduction in utility fee revenue in 2020 due to reduced consumption in 2020. However, the majority of water and sewer operating costs are fixed and require stable user-fee revenue to continue. To avoid a user-fee increase this year, a transfer from the Financial Stability Reserve, as well as 2018 and 2019 surpluses, will be used for operations in 2020.
Financial Stability Reserve The Financial Stability Reserve Fund was established in 2019 to stabilize District revenues when there is an unexpected downturn in revenues and operating cost increases that are temporary.
In early 2020, the District transferred $20,000 from this reserve fund to pay for emergency response costs in relation to COVID-19. Many of these costs will be reimbursed by the Province however some expenses must be covered by the District. A further $60,000 will be transferred to the Water Fund in 2020 to assist with meeting operating costs. These funds made it possible to freeze utility rates for 2020 and minimize property taxation.
Funds from prior years’ surplus will further contribute to the Financial Stability Reserve Fund in order to ensure the resiliency of the municipality in the face of future economic downturns or emergencies.
Next Steps Staff are working to finalize the 2020-2024 Financial Plan and 2020 tax rates which will be presented in an open special meeting on April 30, 2020.
Our website will be frequently updated with new measures or information related to the COVID-19 pandemicthat becomes available at www.tofino.ca/blog/covid-19-updates.
OK. So that's the "general operating" part..... What about the proposed increases for the sewage plant and the transit bus? Are those amounts reduced to 0% also? Will a $1,000 property tax bill in 2019 translate to a $1,000 property tax bill in 2020, for the same property?
Except when the three year budget was for annual increases of 8. 2, 2, and it ended up being 8,4,4, in actual tax increases,
But the District seems to be making some small recognition of the difficulty most are in. Except there is no impact on the wage budget. No sharing of the pain there. I was looking for some equity in the pain sharing department. Guess we will have to wait for an emergency for that.
I’m surprised that someone as smart as I'd like to think my fellow citizens are doesn’t see through this scam, spin, and misrepresentation from DOT. Yes, “General Taxation” increases (normally 1.5-2 %) are being held at 0%.... but that don’t mean that your tax bill will be the same as last years. All the other increases, sewage plant, transit bus, etc etc are still on the table. Your taxes are still increasing….. the amount just hasn’t been made public. DOT deceit and secrecy continue. These announced “reductions” amount to virtually pennies.
And on top of this the district is borrowing five million to guarantee the “continuation of district services”….. translate this to mean “keep their salaries coming in”. You, the taxpayer, will be on the hook for this 5 million, along with the rest of their debt. They cut the staff at the children’s center and the programs for recreation….. Big Deal!! They aren’t allowed to have people congregate for those activities anyway! The health care regulations cut those programs, DOT staff is taking credit for it. Actual staff cuts to non essential positions….. NONE! Disguised as vague statements about “reductions” and “cuts”, but no specifics. Planning staff, led by Aaron Rogers, invented a program to keep themselves employed, along with the new “financial manager”, as they design a “Covid19 Recovery Program”. The “essential” services in the DOT office don’t get touched. Such bull and spin! Those $100,000 salaries continue untouched. No one else in Tofino is making $100,000 this year! The province has made it clear that municipal by-law officials have no authority to enforce Covid regulations….. but Tofino’s Bylaw retains full staff….. to do what? There are no tourists to police and no municipal activity to be regulated.
DOT don’t deserve any praise. They're not acting in the best interests of the taxpayers and residents. This is just DOT staff doing what they always do, presenting council with a plan based on creative writing and spin, protecting staff’s best interest, and passing it on to the electorate disguised as a great victory. Its all stinks.
hey. wait a second. we already pay taxes which include district services. so the dot is going to borrow $5,000,000. to continue district services? can i suggest the dot reduce the cost of those district services by reducing them to a bare bones level of service... that doesn't mean shuffling the chairs around putting the entertainers in the planning department and assistant to the assistant for community services into the emergency event planning committee. at this point the community itself seems to be handling the emergency as well as can be expected without any dot officials announcements and proclamations and a new positions of the emergency disaster manager and assistant and assistant to the assistant. we the people who finance this mumbo jumbo are having to be the free financial disaster managers/babysitters.
The premier of Manitoba is taking a 25 per cent pay cut of his base salary, after asking public sector workers to accept reduced hours, job-sharing, or temporary layoffs.
if the average homeowner foresees trouble paying the mortgage we can get a mortgage deferral for 6 months. that's me and you and most others. maybe a bit more interest........hope this thing goes away. don't buy anything. don't spend money. don't go anywhere. if one works for the DOT there's no problem with mortgage payments. the flu pandemic doesn't affect the city workers incomes or employment at all. they are immune from inconvenience or hardship....does this seem right? this is getting to be too much like a monarchy if you ask me.
if the average homeowner foresees trouble paying the mortgage we can get a mortgage deferral for 6 months. that's me and you and most others. maybe a bit more interest........hope this thing goes away. don't buy anything. don't spend money. don't go anywhere. if one works for the DOT there's no problem with mortgage payments. the flu pandemic doesn't affect the city workers incomes or employment at all. they are immune from inconvenience or hardship....does this seem right? this is getting to be too much like a monarchy if you ask me.
A mortgage deferral does not eliminate the cost, it just defers it. You make it up later General public are encouraged to do our bit. "We are all in this together" we are told every day by the politicians. That is the message for you and me. Those on the government payroll? Time to get fat and chow down. All hail the new overlords.
Don't worry, the bus is coming right on schedule. BC Transit are gearing up to spend money this year. Your money
No money in the taxpayers pocket. No customers
No Problem.
The bus is coming. If they cancelled the bus or postponed it some bureaucrat would have to be reassigned. ON MY GOD, OH MY GOD, RED ALERT. Redd Aaaalerrrttt/ nO CaNnn DooOO. DoEs NOT CommmmpuTTTTe All caputtt. Dive Dive
Look you crazy people, you haters, you start raving and get all upset for nothing. Council did a survey of all the staff. A purely scientific polling, asking staff, "who wants to take a pay cut". The results were 100% accurate, so you can't argue with that.
No one answered in the affirmative, not one, so there you have it, You idiots are all wrong. It is not councils fault that there were no staff cuts.
14 comments:
OK. So that's the "general operating" part..... What about the proposed increases for the sewage plant and the transit bus? Are those amounts reduced to 0% also? Will a $1,000 property tax bill in 2019 translate to a $1,000 property tax bill in 2020, for the same property?
"TYPICALLY, the District increases the base amount of taxation each year by 2% "
from my 2019 Tofino Tax Guide (Budget at a Glance)
- GENERAL TAXATION 1.5% increase.
I Guess they typically think that 2% sounds better than the actual 1.5%
Except when the three year budget was for annual increases of 8. 2, 2, and it ended up being 8,4,4, in actual tax increases,
But the District seems to be making some small recognition of the difficulty most are in. Except there is no impact on the wage budget. No sharing of the pain there. I was looking for some equity in the pain sharing department. Guess we will have to wait for an emergency for that.
Don't worry 2:07 "All animals are equal, except some are more equal than others"
Animal Farm-George Orwell
Why couldn't all government workers take a pay cut equal to the average loss of all Canadians.
I’m surprised that someone as smart as I'd like to think my fellow citizens are doesn’t see through this scam, spin, and misrepresentation from DOT.
Yes, “General Taxation” increases (normally 1.5-2 %) are being held at 0%.... but that don’t mean that your tax bill will be the same as last years.
All the other increases, sewage plant, transit bus, etc etc are still on the table.
Your taxes are still increasing….. the amount just hasn’t been made public. DOT deceit and secrecy continue.
These announced “reductions” amount to virtually pennies.
And on top of this the district is borrowing five million to guarantee the “continuation of district services”….. translate this to mean “keep their salaries coming in”.
You, the taxpayer, will be on the hook for this 5 million, along with the rest of their debt.
They cut the staff at the children’s center and the programs for recreation….. Big Deal!! They aren’t allowed to have people congregate for those activities anyway! The health care regulations cut those programs, DOT staff is taking credit for it.
Actual staff cuts to non essential positions….. NONE! Disguised as vague statements about “reductions” and “cuts”, but no specifics. Planning staff, led by Aaron Rogers, invented a program to keep themselves employed, along with the new “financial manager”, as they design a “Covid19 Recovery Program”. The “essential” services in the DOT office don’t get touched. Such bull and spin! Those $100,000 salaries continue untouched. No one else in Tofino is making $100,000 this year!
The province has made it clear that municipal by-law officials have no authority to enforce Covid regulations….. but Tofino’s Bylaw retains full staff….. to do what? There are no tourists to police and no municipal activity to be regulated.
DOT don’t deserve any praise. They're not acting in the best interests of the taxpayers and residents.
This is just DOT staff doing what they always do, presenting council with a plan based on creative writing and spin, protecting staff’s best interest, and passing it on to the electorate disguised as a great victory.
Its all stinks.
hey. wait a second. we already pay taxes which include district services. so the dot is going to borrow $5,000,000. to continue district services?
can i suggest the dot reduce the cost of those district services by reducing them to a bare bones level of service...
that doesn't mean shuffling the chairs around putting the entertainers in the planning department and assistant to the assistant for community services into the emergency event planning committee.
at this point the community itself seems to be handling the emergency as well as can be expected without any dot officials announcements and proclamations and a new positions of the emergency disaster manager and assistant and assistant to the assistant.
we the people who finance this mumbo jumbo are having to be the free financial disaster managers/babysitters.
and no stupid bus!
The premier of Manitoba is taking a 25 per cent pay cut of his base salary, after asking public sector workers to accept reduced hours, job-sharing, or temporary layoffs.
if the average homeowner foresees trouble paying the mortgage we can get a mortgage deferral for 6 months. that's me and you and most others. maybe a bit more interest........hope this thing goes away. don't buy anything. don't spend money. don't go anywhere.
if one works for the DOT there's no problem with mortgage payments. the flu pandemic doesn't affect the city workers incomes or employment at all. they are immune from inconvenience or hardship....does this seem right? this is getting to be too much like a monarchy if you ask me.
if the average homeowner foresees trouble paying the mortgage we can get a mortgage deferral for 6 months. that's me and you and most others. maybe a bit more interest........hope this thing goes away. don't buy anything. don't spend money. don't go anywhere.
if one works for the DOT there's no problem with mortgage payments. the flu pandemic doesn't affect the city workers incomes or employment at all. they are immune from inconvenience or hardship....does this seem right? this is getting to be too much like a monarchy if you ask me.
A mortgage deferral does not eliminate the cost, it just defers it. You make it up later
General public are encouraged to do our bit. "We are all in this together" we are told every day by the politicians. That is the message for you and me. Those on the government payroll? Time to get fat and chow down. All hail the new overlords.
Don't worry, the bus is coming right on schedule. BC Transit are gearing up to spend money this year. Your money
No money in the taxpayers pocket.
No customers
No Problem.
The bus is coming. If they cancelled the bus or postponed it some bureaucrat would have to be reassigned. ON MY GOD, OH MY GOD, RED ALERT. Redd Aaaalerrrttt/ nO CaNnn DooOO. DoEs NOT CommmmpuTTTTe All caputtt. Dive Dive
Look you crazy people, you haters, you start raving and get all upset for nothing. Council did a survey of all the staff. A purely scientific polling, asking staff, "who wants to take a pay cut". The results were 100% accurate, so you can't argue with that.
No one answered in the affirmative, not one, so there you have it, You idiots are all wrong. It is not councils fault that there were no staff cuts.
seems like the staff and council aren't in this together business as far as contributing something positive to the hurt.....
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