Vancouver city councillors are weighing a 5.5-per cent property tax as they review the city’s draft 2025 operating budget on Tuesday.
But homeowners could also see an 18.2-per cent utility fee hike, partially driven by a 37-per cent increase in sewer rates related to cost overruns on the North Shore Wastewater Treatment plant.
Last spring, Vancouver Mayor Ken Sim said he wanted to keep property taxes capped at 5.5 per cent, down from the 7.5 per cent homeowners paid for 2024 and 10.7 per cent the year prior.
“That’s the number we are starting with to see if we can bring down any lower,” ABC Vancouver Coun. Mike Klassen told Global News on Tuesday.
The budget envisions $453.4 million, a 2.4 per cent funding increase, for the Vancouver Police Department. Police funding is the single largest expenditure category in the budget, accounting for 19 per cent of spending.
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However, Klassen said the city is in talks with the provincial government, with hopes it could help cover the cost of the city’s police body-worn camera program and other public safety costs.
The draft earmarks $880 million in capital spending, with major projects including seismic upgrades to the Granville and Cambie bridges, the construction of the new PNE Amphitheatre, and upgrades to fire halls, sports fields and the city’s sewer and water systems.
“We have an infrastructure deficit right now,” Klassen said.
“That’s why we have really been working hard to find new revenue sources. Of course we have brought forward the sponsorship and naming rights program concept, so that is going to help us to find other ways to be able to bring in millions of dollars a year.”
Green Coun. Pete Fry said city staff had uncovered additional revenue sources including dividends from the city’s property endowment fund, investments and tax increases from new development that could bring the tax hike as low as 3.9 per cent.
“What’s interesting is there is a bunch of unfunded priorities, which roughly could top up that 3.9 per cent to 5.5 per cent,” he said, pointing to the body-worn camera project, street cleaning grants and additional library hours.
“Obviously, ever-increasing taxes is not the kind of news that anyone wants to hear, but the reality is we have a significant amount of monetary pressures at the City of Vancouver to keep everything running the way Vancouverites enjoy and expect.”
Other key spending areas include the fire department, public libraries and parks and recreation.
The draft budget envisions a 4.3-per cent funding hike to $195.2 million for the Vancouver Fire Rescue Services.
It forecasts a 2.5-per cent spending increase to $64.5 million for the Vancouver Public Library.
And it earmarks $183.9 million for the Vancouver Park Board, an increase of 7.2 per cent.
It also lays out a number of increases to user fees, including a 6-per cent fee hike for recreation facilities, a 6-per cent fee hike for most business licences, and a 3-per cent increase to building and development permit fees.
Council is not expected to vote on the final budget until next week.
© 2024 Global News, a division of Corus Entertainment Inc.
