New Westminster residents and businesses are facing their heftiest tax hike in years.
On Monday, council directed staff to prepare the 2019 financial plan bylaw, which proposes a 5.28 per cent tax increase for 2019. Council had received a report that proposed a tax increase of 4.49 and a 2019 capital levy increase of 0.5 per cent, but after approving a number of additional service enhancements this year’s proposed increase went up to 5.28 per cent.
Staff will provide a public presentation on the draft budget on March 11 and give people an opportunity to speak about the proposed financial plan. The plan is for staff to seek formal approval of the budget that night.
The proposed tax rate includes a 1.8-per-cent increase that’s related to the provincially imposed Employer Health Tax. In an attempt to minimize the burden on taxpayers, the city has reduced a one per cent capital tax levy it started collecting last year to 0.5 per cent in 2019.
“This is a difficult budget year,” said Mayor Jonathan Cote, “particularly with the Employer Health Tax, from the very get-go adding 1.8 per cent before we did anything.”
Colleen Ponzini, the city’s acting chief financial officer, said the city’s expenses have increased by $6.9 million, which is primarily from salary and benefit wage increases and new personnel to address increased workload, as well as $1.5 million for the provincially imposed Employer Health Tax. She said other increases relate to items such as funding for special events, enhancement of the Q to Q ferry operation and increased operating costs for the Anvil conference centre.
In addition to the operating budget, the financial plan includes a $67 million capital program, of which $51 million is projected to be funded from reserves, $1.9 million from development cost charges, $6.3 million from debt and $7.9 million from grants and contributions. Big-ticket, multi-year capital projects being funded in 2019 include the relocation of the animal shelter and tow yard, renovations to the New Westminster Public Library, replacement of Canada Games Pool and Centennial Community Centre and city hall renovations, as well as improvements to the city’s transportation and parks infrastructure, buildings, fleet and projects to enhance the city’s arts and culture portfolio.
According to Ponzini, the city’s five-year capital plan anticipates spending $265 million, of which $124 million would be funded through reserves, $112 million from debt and $28 million from development cost charges, grants and contributions. She said city staff are trying to secure grants, which would reduce the need to borrow or draw on reserves, which are projected to go from $69 million in 2018 to $39 million in 2023.
“The capital levy of 0.5 per cent in 2019, and one per cent for each year after definitely assist the city in being able to meet its capital plans and requirements,” she said. “In this plan, the city is planning to debt finance in the general fund some of the larger projects in the five-year plan, such as the replacement of the Canada Games Pool and Centennial Community Centre, Massey Theatre and public realm projects. This will result in long-term debt rising to a total of $130 million by 2022. If successful in securing grant funding, the debt load could be reduced.”
Enhancements included in this year’s operating budget include items a number of staffing positions and services, including: sales coordinator and duty manager at the Anvil conference centre; a senior development planner; a child-care and affordable housing planning analyst; a transportation planner; an arboriculture technician; a consultant and resources for reconciliation; consulting fees; Q to Q ferry operations; and costs related to administration of the tree permits.
More than 30 additional enhancements weren’t recommended for approval, but council voted to add several to the operating budget: an Intelligent New West program coordinator, which is $100,000 and adds 0.13 per cent to the budget; a cultural duty manager at Anvil Centre, which is $64,000 (0.08 per cent); and an assistant program coordinator for special events in New West, which is $64,929 (0.08).
“I think we are at a bit of an interesting time with Intelligent New West where we have a strategic plan moving forward,” said Coun. Patrick Johnstone. “I am afraid if in 2019 we don’t continue to support that program, it’s not something we can put away for a year and pick back up.”
In addition to the proposed 5.28 per cent tax increase, property owners also face a seven-per-cent increase to the water rates, a 12-per-cent increase to solid waste rates, a seven-per-cent increase to sewer rates in 2019. On Monday, council approved a 2.8-per-cent increase to the electrical rates, which take effect on April 1.
