A 2.9 per cent tax increase is too much for too many residents, says Coun. Betty McIntosh.
On Monday, council gave three readings to the five-year financial plan (2013 to 2017), which includes a 2.9 per cent tax rate increase for 2013.
"There's lots of people who can't afford 2.9 per cent," said McIntosh, the lone council member to oppose the tax hike.
According to staff, a 2.9 per cent tax rate increase results in an increase of $30 on a residential strata property assessed at $306,000, a $69 increase on a single family dwelling assessed at $696,000 and a $100 increase on a single family dwelling assessed at $1 million.
In addition to the property taxes, residents will also face an increase in utility fees (3.5 per cent for water, 9.4 per cent for sewer, and four per cent for solid waste). A staff report indicated the hikes to utility fees would result in increase of $33 for a strata property assessed at $306,000 and $68 for single-family homes assessed at $696,000 and $1 million.
McIntosh said she regularly hears from residents who are concerned about the increased costs of taxes and utilities. "There was a sticker shock," she said about the reaction to this year's utility notices. "A lot of people weren't aware our utilities were going up as much as they did."
McIntosh said the city purposely separated the property tax bills and the utility bills about 15 years ago, as the city thought it would help homeowners with their budgeting.
"They are pretty big bills," she added.
McIntosh said community members can see development happening around the city, and even though it's generating new tax revenues their taxes continue to rise.
"Taxation revenue from new construction is built into the budget," said Gary Holowatiuk, the city's director of finance and information technology. "If there is anything we need over and above that, that is where the tax increase would be."
Some of this year's 2.9 per cent tax increase is due to the fact the city is putting money into reserve accounts to deal with the need to replace or renew Canada Games Pool in the future and to contribute to a new Massey Performing Arts Centre, as well as a "rate stabilization reserve" to minimize future tax increases related to the opening of Anvil Centre. It also includes funds for a number of items deemed high priority, including the establishment of a public art reserve fund and enhancements to the city's community energy and emissions plan.
According to Holowatiuk, the city expects to see $1 million in additional tax revenues from new construction in the coming years.
He noted property tax increases in the range of two to three per cent are projected on top of those additional revenues.
On Monday, council received a staff report about the 2013 to 2017 five-year financial plan.
The report included an attachment consisting of a four-page list of capital projects that are to be funded by debt unless they are deferred until the office tower above the civic centre is sold and the city's reserves are replenished.
Staff reviewed the projects and ranked them as being mandatory, being able to be deferred or needing direction from council.
Staff sought council's direction for several initiatives, including: the Wait For Me Daddy public art project; replacement of the skateboard park at the high school; improvements to the Timber Wharf section of Westminster Pier Park; reconstruction of the Moody Park spray pool; replacement of the playground at Moody Park; a humidity unit at Irving House; remediation at the Front Street parkade; and construction of an overpass from Fourth Street into Westminster Pier Park.
Coun. Lorrie Williams said money needs to be available for the Wait for Me Daddy project as it's time sensitive.
After looking at the list of projects needing more staff input, Coun. Bill Harper said he was satisfied they need to proceed.
He suggested council support all mandatory capital projects and those needing council's direction but table the list of items proposed for deferral until the next council meeting, as it would give the public time to provide feedback.
"This has happened since we had our public session here," he said of the list of capital projects. "It would be prudent for us to do that."
McIntosh said she supports the skateboard park, but believes it could be deferred, as the city doesn't have a timeline from the school district about when work on a new high school will get underway at the site.
Council tabled consideration of the list of deferred capital projects until the April 8 council meeting.
