Outsized property tax increases proposed in the capital region over the next five years are unsustainable and a new way of doing business is critical if municipalities are to provide quality core services.
Municipalities are facing hundreds of millions of dollars in capital expenditures for renewing aging infrastructure such as roads, buildings, leisure facilities like pools, emergency services, work yards and underground services.
Several jurisdictions in the capital region are citing infrastructure deficits and predicting stiff property tax increases this year of eight to as high as 12.41 percent. This compares to the last five years when most – but not all – local municipalities averaged annual increases of four percent.
“At what point is the camel’s back broken?” asks John Treleaven, chair of Grumpy Taxpayer$ of Greater Victoria. “How many residents can cope with a tax increase of 50 percent in the next five years?”
How many business owners – who pay several times residential rates – will close their doors? Last year the property tax multiples varied in the region from 2.32 in Central Saanich to 6.79 times for business in North Saanich, according to our analysis of provincial data.
“It’s obvious to residents, not necessarily to local politicians, that more harmonization of services will offer better value for their taxes
Among the jurisdictions struggling with demands is Vancouver which appointed seven accountants and 21 researchers, among others, to take a microscope to find budget savings.
The Mayor’s Budget Task Force will table its 36-page report and 17 recommendations for discussion at a Vancouver council meeting on Jan. 23.
The blue-ribbon, third-party task force recommended the city narrow it’s scope of work, consider divesting itself of ‘non-core assets, and get philanthropic, business and non-profit help for municipal priorities.
It focuses on three themes; defining the role of the city and keeping within it; improving efficiency by using performance indicators, cross-department collaboration and managing absenteeism; and better managing capital assets.
“These three themes are not new and in many ways similar to the 13 municipalities in the capital region,” says Treleaven.
“One hundred local politicians in the CRD can learn a lot by studying the Vancouver experience.
“How will local municipalities cope with extreme budget pressures such as escalating labour, material costs and inflation for infrastructure renewal? Why aren’t council cost-sharing services more often? Will there be more outsized property tax increases beyond inflation as there has been for 20 years?” asks Treleaven.
READ MORE
Cities grapple with shortfalls, property-tax increases, Globe and Mail, Jan. 16, 2023.
Vancouver Mayor’s Budget Task Force says City needs “disciplined focus” on spending: report, Daily Hive, Jan. 18, 2023.
Vancouver mayor’s budget task force proposes ‘potentially divesting’ some city assets, CBC News, Jan 17, 2023.
Capital Integrated Services and Governance Initiative, Government of BC, 2017t