Abbotsford homeowners will be paying a 2.06 per cent tax increase in 2013.

Abbotsford city council, which previously considered a tax rate of 1.36 per cent,

voted to approve the new figure when approving its five-year financial plan on Monday night.

The new tax figure represents an increase of .7 per cent due to the addition of a capital levy

A homeowner with a typical house valued at $400,000 will pay an extra $13 for the levy and $26 a year in property taxes for a combined hike of $39 in 2013.

Council made the decision after staff, which originally proposed a one per cent capital levy, repeatedly stressed the need for the fee to supplement the city's strapped capital reserve.

The reserve acts as the city's savings dedicated to long-term capital investment projects or other large, unexpected future expenses.

City manager Frank Piz-zuto said the levy collected would not be put into the

general capital funds but set aside and saved in a dedicated account.

In addition to taxes, residents are facing increases in sewer and drainage fees.

The typical Abbotsford homeowner faces a $53 increase in 2013 including the new utilities fees, capital levy and property tax.

A storm drainage fee hike of two per cent planned for the next five years will equal an increase of $3 in 2013.

An increase of five per cent for sewer over the next five years will add $11 to a typical property bill.

Water fees will not increase and neither will solid waste fees for urban areas next year.

However, for rural properties on the city's west side, waste fees will increase over a three year period from $180 to $220 a year to match urban solid waste pickup fees. The total utility fees for a

pickup fees. The total utility fees for a typical Abbotsford home in 2013 will be $803, up from $787 in 2012.

Mission, Langley and Chilliwack's 2012 utility fees were $1,087, $1,036, and $706, respectively.

The total annual taxes and fees for a typical Abbotsford residence in 2012 came to $4,012.

A one per cent property tax increase translates into $1,131,000 of city revenue. Council will give the budget bylaw readings on Dec. 10 and final approval on Dec. 17.

RBaker@abbotsfordtimes.com