For the second straight year, the City of Merritt is looking at a two per cent property tax increase.

Last Tuesday at its regular meeting, city council moved toward adopting the new rate by giving the first three readings of the city’s property tax rate bylaw.

Council also gave three readings to the five-year financial plan bylaw.

Both were passed by a vote of 6-1 with Coun. Linda Brown opposed.

However, council unanimously approved the first three readings of the sewer parcel tax bylaw and the water parcel tax bylaw, which will see a $20 per parcel increase to water parcel taxes beginning this year.

The increase will add another $64,000 of revenue for the water utility to be used for capital infrastructure improvements to the water system.

The sewer parcel tax rate is not changing, but because it and the water parcel tax were included in one bylaw, which is being repealed for the water parcel tax increase, it was necessary to create a new bylaw for the existing sewer parcel tax.

The two per cent property tax increase will add another $135,000 to city coffers this year.

Ken Ostraat, the city’s financial services manager, said that about $8.5 million will be collected in property taxes this year, and the city’s total budget for 2015 will consist of $19.8 million.

About 60 per cent of revenues come from taxation, Ostraat said.

He said operating expenditures will be maintained for the most part, although costs overall will be increasing for the city in 2015.

“[Costs will] probably continue to increase throughout the next four years,” Ostraat said.

The city’s garbage collection rates increase 10 per cent effective July 1 in response to higher Thompson-Nicola Regional District tipping fees, and there was a $25,000 increase in costs to the city due to a six per cent increase in BC Hydro rates that went into effect April 1.

There are seven different types of property taxes in Merritt, and almost half of that tax revenue comes from the residential class, Ostraat said.

He added that the average house in Merritt is worth roughly $208,000 and would pay $2,100 total in property taxes.

The five-year financial plan bylaw must be adopted by May 15, and the plan projects a two per cent property tax increase in each of the following years.