Oliver town council decided Monday to wait until budget talks in the fall to start planning for the large tax hike that will hit when and if the population tops 5,000.
Under the BC Police Act, municipalities become responsible for policing costs when the population reaches 5,000 people according to a Canada Census.
The most recent census, in 2011, put Oliver’s population at 4,829. The next census is in May 2016.
In a report to council on Monday, Chief Administrative Officer Heidi Frank outlined several options for council as it faces the impending financial hit. They all included some form of savings or reserve fund to accumulate money for the day when the town has to start paying for policing costs.
The option recommended by staff reads: “That council be pro-active in planning for the future policing costs by establishing an RCMP operational reserve fund, that annual contributions … be set at $60,000 and that in future years be increased by the percentage increase of the general municipal tax rate … in Canada.”
Councillor Jack Bennest pointed out that at several points in the town’s history the population has actually gone down and that “going over 5,000 is not automatic.”
Mayor Ron Hovanes said that budget discussions in the fall would be an appropriate time for discussion of the issue, but said much information will be needed, including housing starts, to help make decisions on how to prepare.
He said it might make sense for the town to start some sort of reserve fund to shield taxpayers for a few years when the $600,000 to $700,000 is added to the town’s budget. Councillor Larry Schwartzenberger said it is important to have public consultation on the issue. “Should we have a town hall meeting?” he asked.
Council took no action on the report from Frank.
