The residential property tax rate is going up by 2.98 per cent this year.
Burnaby council approved the increase at Monday night’s council meeting.
The rate is based on taxes on the average residential property, which is worth $704,565, according to Coun. Dan Johnston, who read from the city’s 2015-2019 financial plan.
That would be an increase of $46.77 on such a property, he added.
“If you have an assessment set by B.C. Assessment that is below $704,565, you’ll see a reduction in your taxes. If it’s above $704,565, you’ll see an increase,” said Johnston, who chairs the city’s audit and financial management committees.
“The report that is before us is pretty conservative – it’s not the highest rate, it’s not the lowest rate,” he said, adding it was “pretty reasonable.”
A number of 2015 capital projects were also mentioned in the financial plan, including $17.8 million in major road rehabilitation, Johnston said.
Other projects included new streetlights, completion of the Still Creek works yard, and work at the Burnaby Lake Sports Complex and Edmonds Park.
The 2015 provisional financial budget was presented to council in February, and recommended a 2.98 per cent tax increase.
Last year, council approved a 1.97 per cent tax increase, though the city had initially projected a 2.47 per cent hike.
Burnaby council also received the 2014 annual financial report at Monday night’s meeting.
Burnaby's annual surplus last year came in at $101 million more than projected in its 2014 budget, but that was due to an accounting change, according to Johnston.
The annual surplus was projected to be $57 million, according to draft financial statements, but the recorded surplus was $158 million.
Approximately $58 million of that was due to a change in the city auditors' accounting practice, Johnston said.
“This is not new revenue, the city did not make an additional $58 million windfall,” he said.
The surplus from the city’s operations was higher than projected but much more modest - $8.2 million.
There was slightly more revenue from water and sewage than the anticipated costs, according to Johnston, and a small surplus from library.
“The majority of our $8.2 million surplus results from RCMP staffing vacancies,” he added.
Mayor Derek Corrigan contacted the NOW about the changes in the city’s accounting practices that indicated such a large surplus for 2014.
"Until this year, funds received by Burnaby from developers to build community amenities were held as deferred revenue until used for their intended purpose of building community amenities,” Corrigan wrote in a letter to the Burnaby NOW. "This year, the city was required to report these funds as revenue in the year received, resulting in an increase in the annual surplus."
The sale of city land also added $7 million to the surplus, Corrigan said, adding that the value of the city assets received from developers, such as sidewalks, streets and light, are also considered revenue.
