Vancouver property owners may face significant property tax increases over the next five years, as indicated in a budget outlook report presented to the city council on Monday evening. The report proposes implementing a 9% annual hike from 2024 to 2028 in order to maintain the current service levels and balance the budget.
For the average strata property owner, this would result in an approximate yearly increase of $116, while a median single-family detached home would see a yearly increase of $304.
These projections by city staff are still subject to revision, and the budget is not expected to be finalized until near the end of the year. The mayor’s budget task force, established to assess fund allocation after a 10.7% property tax increase for 2023 was approved, is currently conducting a line-by-line review to identify potential areas for increased efficiency.
Councilor Sarah Kirby-Yung, part of the task force, acknowledges that the proposed increase is not ideal and highlights the need for more reasonable tax increases.
“We recognize that residents and our small businesses are really being hit hard in terms of increasing cost pressures, material labor costs — the same things the city is dealing with. But we are looking at ways to bring the tax increases in line to be more reasonable,” she said.
The city is facing substantial financial pressures due to factors such as inflation, supply chain disruptions, labor market challenges, and changes resulting from the pandemic.
The city’s budget will also need to accommodate significant capital expenditures, estimated at $730 million annually from 2024 to 2028. These expenses are essential for asset renewal, addressing population growth, and fulfilling city goals, including the Climate Emergency Action Plan. On top of this, the city’s operational costs are also expected to increase in the coming years.
While the budget task force aims to identify opportunities for streamlining funding, some council members express concerns about potential cuts to vital services such as libraries, parks, and programs for homelessness. The importance of supporting services that cater to the diverse needs of Vancouver residents is emphasized.
Kirby-Yung suggests potential revenue opportunities through systems that streamline building permit applications and exploring sponsorships for projects like the planned new PNE amphitheater. These initiatives could help offset the need for higher property taxes.
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