City of Merritt to look at increasing parcel tax, to offset Water Fund shortfall.
Director of Finance Sheila Thiessen says the city has enough in reserves to cover the $659,343 in capital projects needing to be completed in 2018, but looking forward to 2019 and beyond, there will be some challenges to meeting the annual $540,000 in funding for capital replacement.
One way to make up the difference is by increasing the parcel tax, which could be offset by the Sewer Fund.
"$100 is currently raising $435,000 a year, so that leaves us short. So, raising it $75 to $100 would be appropriate. But, then we could realistically cover it through the Sewer Fund. It's just part of the picture for Mayor and Council to look at, and see whether they are interested. They might not be this year, but I'm putting it out there for them to consider."
Thiessen says another way to make up the difference would be to increase user fees.