Taxes set to rise for the Sparwood residents

Sparwood council gave first readings to its 2026 to 2030 financial plan bylaw and 2026 tax rates bylaw during the April 21 regular meeting, advancing a budget that includes a 9.75 per cent municipal tax revenue increase and a $150 sewer parcel tax increase.

Chief Administrative Officer Michéle Schalekamp told council the April 21 report represented the next step in finalizing the five-year financial plan and the tax rate bylaw that accompanies it.

“This has been a long process to get to this point,” said Schalekamp.

She said council developed budget policies and guidelines in October 2025. A draft capital plan was presented in December, followed by a draft operating budget in January. The draft financial plan was approved in March, followed by a public open house and public information efforts at the mall.

Schalekamp said several changes had been made since the draft budget was presented in March.

The revised assessment roll was received from BC Assessment, resulting in just under $1,000 in taxation revenue change. The district also received requisitions for the school tax, police tax, RDEK and hospital. The 2025 financial statements were finalized, with no changes to the capital plan and only a minor change to the operating budget.

Council is proceeding with a 9.75 per cent municipal tax rate increase, excluding the mine tax pool. Schalekamp said the mine pool increased by just under one per cent for 2026.

She said the sewer parcel tax increased by $150 to pay for wastewater treatment plant borrowing.

The municipal tax increase includes 3.5 per cent for regular inflation, 1.25 per cent for a new GIS staff position, one per cent for additional labour costs, one per cent for the policing reserve as Sparwood moves toward 5,000 residents, two per cent for the capital reserve for asset management and two per cent for the recreation reserve for asset management.

Another 0.75 per cent was tied to additional community funding requests approved by council, while 1.25 per cent was used to offset an increase to the mine tax bill.

Schalekamp said the increase was offset by three per cent in cost saving initiatives.

She also provided council with a tax comparison based on an average home assessed at $500,000.

The average residential assessment value increased by 7.26 per cent. Schalekamp said Sparwood reports tax increases based on total tax revenue, not simply the tax rate.

She said the municipal tax rate itself increased by 2.32 per cent because it was offset by rising assessments. The school tax rate increased by 3.51 per cent, the hospital tax rate increased by 9.28 per cent, the RDEK tax rate increased by 5.39 per cent and the BC tax rate increased by 9.52 per cent.

The Sparwood municipal tax levy increased by 9.75 per cent. The overall increase, including other jurisdictions, averaged 10.71 per cent, or about $301 more on a $500,000 home.

Water parcel tax increased by three per cent and sewer increased by $150.

“Total taxes, the municipal portion, and including other jurisdictions, if you own a house of equivalent of $500,000 in assessment, will be $452,” said Schalekamp.

Mayor David Wilks thanked Schalekamp and staff for their work on the budget.

“You and your team have done a great job,” said Wilks.

He said the district is facing costs outside its direct control, including regional district and hospital board increases. He also pointed to the potential financial impact if Sparwood’s population rises above 5,000.

“It will be interesting to see what our population is in 2026 here,” said Wilks. “Cross your fingers we’re under 5,000. I believe we will be. I’m led to believe by 2030 we will not be. And then that will increase taxes a lot.”

Council gave first, second and third readings to Financial Plan 2026 to 2030 Bylaw 1368 and Tax Rates Bylaw 1369. The bylaws are expected to return to council for adoption.