Why is the property tax increase more than the Consumer Price Index?

The Bank of Canada Consumer Price Index (CPI) is a common measure for inflation in the economy. The calculation uses the "basket of goods" theory where a broad range of goods that are typically used in an average household are used in the calculations. There are eight categories that are populated with a number of items within these areas:

  • Food

  • Shelter

  • Furniture & household equipment

  • Clothing

  • Transportation

  • Health care

  • Recreation & education

  • Alcoholic beverages & tobacco products.

As we can see, many of the items in each CPI category are not used by the City in the delivery of its products and services. Most items common to households and municipalities are the items that are increasing in price - utilities or fuels, for example. Unfortunately, many of the items that are remaining flat or decreasing are not purchases made in civic operations. Also, in the CPI "basket of goods", there is a lack of construction-related items such as concrete, steel, black-top and any of the related services to deliver these items.

Show All Answers

1. What impact will the 2019 budget have on homeowners?
2. Was there any public input in the preparation of this budget?
3. What is the business planning & budget process?
4. What is the difference between the operating budget and the capital budget?
5. Besides property taxes, what other sources of funding does the City have?
6. How do Revelstoke’s property taxes compare with other nearby municipalities?
7. What is the annual operating budget for the City?
8. How is the operating budget funded?
9. What’s new in the 2019 budget?
10. Why is the property tax increase more than the Consumer Price Index?
11. Why does the City need a tax increase?
12. What does the City do to control or reduce costs?
13. Will next year’s tax increase be lower?
14. With all the growth, why do we need a tax increase?