With a loss of about $700,000 worth of revenues to the Town of Comox due to COVID-19, council agreed upon a two per cent municipal tax overall increase for 2020.
In his report to council at the April 15 meeting, Clive Freundlich, director of finance for the Town, said more than $7 million of projects were removed from the original budget. Many of these projects will be deferred to future years.
He added the savings identified are sufficient to eliminate the previously proposed tax revenue increase of 5.52 per cent.
At the meeting, council was presented with three options for municipal tax revenue: a zero per cent tax increase; a two percent tax increase or a 5.5 per cent tax increase.
Coun. Maureen Swift was in favour of the two per cent increase and said while it is absolutely devastating for the people who lost their jobs or who have been laid off, there are still many people working within the town, such as health care workers and those in the military.
Noting the Town’s prudent financial position over the past years, Coun. Ken Grant disagreed and explained a zero per cent rate would be appropriate.
“We have to show the public in our town that we are doing everything that we can to help them … I think we’re fortunate as a community that we’re in a position that we can look at that. I think we run the risk of being really tone-deaf to what people are saying in the streets, and not only that, I think it’s the right thing to do.”
Coun. Alex Bissinger proposed a revision to the amendment of a three per cent increase and noted people are “getting hung up on a number.”
“The difference between two and three per cent is seven dollars - seven dollars is the cost of a latte at Starbucks, but for what it will do for our economy within the Town of Comox … at least until things are getting a bit better.”
She added the focus should be on infrastructure as other levels of government look to infrastructure to help economies recover following a recession.
“I think some people can’t afford to shop at Starbucks, so I think we have to be really conscious that this is a really, really critical time,” said Coun. Pat McKenna.
Bissinger’s friendly amendment of a three per cent increase was voted down with five councillors opposed. A motion of a two per cent increase was approved with Grant voting against the motion.
The Town’s tax bylaw has to be formally adopted by mid-May.
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