Princeton home owners are facing a five per cent municipal tax increase in 2019, according to Mayor Spencer Coyne.
While the budget is still in draft form, Coyne said the hike is necessary to meet increased operating costs including salaries and the new B.C. Employer Health Tax.
“We need to be able to do the business of the day,” he said in an interview with The Spotlight.
Coyne acknowledged this is the most significant tax increase in recent years - but also noted Princeton has the lowest municipal taxes in the area.
“Our residential taxes are 10 per cent lower than in Keremeos. We are lower than everyone else in the valley.”
He said while councils in the past have been “fiscally conservative,” enough money hasn’t been put by to invest in infrastructure and growth - everything from repairing sidewalks and roads to replacing street lights.
Residential taxes increased last year by two percent.
A historic lack of planning has resulted in the need for higher taxes now, said Coyne.
“Princeton is on the edge of a boom…How do we keep up with that growth?”
Council also plans to introduce a five per cent increase in water and sewer rates, with two per cent of that earmarked for an infrastructure reserve fund that should accumulate approximately $25,000 in its first year.
The mayor said he expects some residents will not be pleased with the increases.
“That’s always going to happen when you raise taxes and fees.”
He encouraged anyone with questions to approach council.
“We are looking very positively towards the future. We are looking for how we get the most bang for our buck and how we keep the lights on at the same time.”
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