District of Lantzville council is considering its options to hold off on any property tax increase for the third year in a row.
Council is examining three budget scenarios prepared by staff, with property tax increases ranging from zero to five per cent, while water user rates fluctuate from a three- to seven-per cent increase.
Ken Bjorgaard, Lantzville's interim director of financial services, told the News Bulletin that nothing is firm and council is still awaiting more information about reserves for future asset rehabilitation and replacement.
"They can pick and choose different items within those options," Bjorgaard said. "For instance they can go with a larger tax raise, no increase in utilities for example. You can mix and match those scenarios, those aren't set in stone."
In Scenario A, there would be a zero-per cent increase in property taxes, a three-per cent increase in water user rates and a 6.9-per cent increase in flat sewer user rates including 3.9-per cent increase for the shift to flat sewer rates.
In Scenario B, there would be a three-per cent increase in property taxes, five-per cent increase in water user rates and a 3.9-per cent increase in flat sewer user rates as part of the shift from variable to flat sewer rates.
In Scenario C, there would be a five-per cent increase in property taxes, a seven-per cent increase in water user rates and a zero-per cent increase in sewer user rates, with no shift from variable to flat sewer rates.
Bjorgaard explained that the shift from variable to flat sewer rates is a gradual plan initiated by council anticipated to take about three years, culminating in a completely flat sewer rate in 2026.
"The rationale behind that is the variable rates are based on a percentage of the water usage but sometimes for the summer, for example, you're using more water but that's not representative of sewer use when that occurs."
Regardless of scenario, some additional factors will still need to be considered before a final draft of the budget can pass, including new construction revenue from non-market change assessments which aren't available yet.
Some capital financial items allocated in the current draft plan include $600,000 for water main replacement on Lantzville Road, $215,000 for culvert repair on Rumming Road, $500,000 for road work on Phantom Road and $100,000 for a community-use facility rehabilitation. A total of $100,000 is also budgeted for a pickup truck replacement for public works and $100,000 to replace aging rescue tools for the fire department.
"Capital is something that will change quite a bit probably as budget discussions go along…" Bjorgaard said. "Right now the capital doesn't require any borrowing, which is a positive thing as well."
Some infrastructure capital projects have been included in the documents to be discussed, but haven't been included in the capital plan yet. These include Phase 2 of the Dickinson Road replacement project from Lantzville Road to Oar Road at a cost of $2.3 million, as well as the Harper Road beach end and Sarnia Road end, which have costs still to be determined. As well, the district is looking at budgeting for public works building re-design and planning, ahead of 2026 which has $2 million allocated for that project.
Phase 1 of the Dickinson Road replacement project is current out to tender.
Coun. Jonathan Lerner made note during discussions on Wednesday, Nov. 13, that the Harper Road beach end project is one that council intends to move forward on.
"Of course we don't have a dollar figure yet because we don't have a design in plan..." Lerner said. "For me personally, Dickinson Road and Harper Road beach end ... stand out as priorities. Personally, the new public works [building] I'll consider that and think about that, I think there could be some alternatives there."
Following the meeting, Bjorgaard told the News Bulletin that the budget is a balancing act.
"Council is trying to balance the needs of the present versus the needs of the future and that's a balancing act when it comes to establishing budgets. You need to think about setting aside money as your infrastructure ages but you also have to be cognizant that the taxpayers have been under a lot of pressure themselves through inflation and other monetary challenges that they've had."
