Most residents are proud to be paying taxes in the capital region to support their high quality of life. The only thing is – to borrow a phrase – most feel they could be just as proud for half the money.
Painful property tax increases are arriving after years of low inflation with annual hikes usually based on a supposed flawless cost plus budgeting model. Just quickly add inflation or more on to last year’s budget, and carry on.
While a Times Colonist editorial ‘Municipal tax increases are hard to justify’ notes many jurisdictions have brought in hefty and unjustifiable property tax increases, it doesn’t compare to the district of Metchosin.
This year the new council borrowed from reserves to settle on 11.7 per cent, and is anticipating eye-watering hikes of 22.1, 24.3, 27 and 28.8 percent over the next four years. If those increases stand, the word ‘compounded’ will take on added meaning.
Metchosin council justifies much of the increases to the federal government reducing subsidies for policing in communities of more than 5,000 population. However, Canadian taxpayers will still subsidize small town and rural neighbours by picking up 30 per cent of policing costs.
Going forward though, the council may want to consider what the Bank of Canada had to say May 18 about local mortgage borrowers who renew their loans over the next several years. By 2026, nearly all borrowers have to renew their mortgages, and they will see a spike of 20 to 40 per cent in their monthly payments.
It’s inevitable that municipalities will need to economize by merging the bureaucracy beneath them or consolidate with a neighbouring jurisdiction.
Metchosin merging with the District of Sooke could be a match made in taxpayer heaven.