City Council is asking for your participation in a survey to look at options to reduce taxes for the 2025 year, as we begin to prepare the next City budget this fall.
The survey closes on Friday, October 18, 2024.
Significant inflation with rising costs for everything has been a thorn for residents over the past few years post-COVID. These inflationary cost increases impact many of the City’s operating and project costs the same as what Cranbrook residents and businesses are experiencing.
Last year, in preparation for the 2024 budget, City Council provided for the same services as the year before which required a tax increase of 8.32%. “Services” includes things like snow plowing, road maintenance, fire and emergency services, and park maintenance, as examples. You can learn about all services the City delivers in our 2024 Business Plan in the link below. In planning for next year’s budget, Council directed Administration to look at what it will take to develop a City budget with a maximum of a 5% tax increase for 2025. To maintain same level of services next year as we have in this year would require a tax increase of 8.59%. To hold the tax increase to 5% or less will mean identifying $1.3 million in reduced expenses, increased revenues, or a combination of the two.
After the 2024 municipal tax increase of 8.32%, Cranbrook municipal taxes on an average home are slightly higher than our neighbors in Nelson and Invermere, but still less than Fernie or Kimberley.
In order to consider options to reduce taxes to the target or below set by Council, the survey is intended to determine your opinion on the options to cut service levels, cut services, raise fees, find new revenues beyond what has been done to date or a combination. When setting the final budget for each upcoming budget year, Council opens the budget process to public comments. This year is different, the City will begin sooner and engage the public on specific questions about the City services, fees, and taxes.
Note: The City is conducting both types of surveys at the same time; a statistically valid survey and a public opinion survey. The statistically valid survey has been mailed out to sample 1600 City residents in a way that will provide a scientifically reliable snapshot of what residents collectively think. The public opinion survey accessible on this web page is designed to gather ideas and comments from residents of Cranbrook that live inside City limits.Both surveys will be presented to Mayor and Council before the 2025 budget discussions. While the statistically valid survey provides a solid foundation for understanding general sentiments, the public opinion survey adds depth by highlighting individual opinions and suggestions. Mayor and Council will consider insights from both surveys during their discussions in the fall budget process.
The City is asking citizens that live within the City of Cranbrook limits to please complete one survey.
As a citizen, you are likely aware of the price inflation on residential consumer goods.
The price of the City’s cost of goods and services has also been impacted by inflation, for example:
- In 2019 a Public Works pick-up truck cost $32,500 + taxes. Today the same truck costs $49,000 + taxes. A 50% increase.
- In 2019 a street sweeper cost $325,000 + taxes. Today it costs $490,000 + taxes. A 50% increase.
- Seven years ago, the cost of a Fire Engine was $740,000. The price for that exact same Engine in 2023 was $1.4M + taxes. An 89% increase.
- To repave a city block cost $250,000 in 2017/2018; 2024 cost is $450,000. An 80% increase.
- In 2017/2018 one block of road paving, curb and gutter, sidewalks, watermain and sewer (complete rebuild of an entire city block) cost between $675,000 and $750,000; 2024 estimates for the same work is $1.3M. A 73% increase.
With the above examples in cost increases for projects, and the chart below reflecting increased project funding but the increases in costs reducing results, keeping the tax increase low when the cost increases are so high is a challenge.
From 2016-2024, infrastructure funding has increased by approximately 60% (blue chart, representing budget amount). Over that time, the amount of work completed had reduced 30-40% (orange line, representing average linear infrastructure work completed)
Also, in 2024, Cranbrook is busier than ever, and demands on City services are higher than ever, which makes finding savings difficult as demands are sharply increasing, not decreasing. Our Region is also challenged with more climate change issues around flooding and fires, addressing social issues that have surfaced post-Covid, including previously unseen levels of homelessness and opioid use, as Cranbrook is a regional hub for social services in the Kootenays.
In addition to the proposed changes presented to the public in the below questionnaire, City Administration is reviewing all department expenses and services to reduce all costs without affecting services to residents in preparation for the 2025 budget year, and undertaken service fee reviews that have recently been approved by Council to raise revenues. The City continues to streamline process for developers and pursue economic development opportunities to attract new businesses to generate more tax revenues.
Below are links to the documents you may wish to review to understand the current services and budgets for the City of Cranbrook.
Reports