Victoria homeowners would face a combined property tax and utility bill increase of 2.91 per cent this year, if preliminary budget figures going to councillors this week were approved without change.
But council members point out the budget figures are just a starting point and changes are guaranteed as they pare costs and refine priorities.
“We haven’t even started,” said acting mayor Pam Madoff. “We’ve got a long way to go.”
Madoff said one of the “great unknowns” is how much additional revenue will come from new construction.
“Our finance staff are always very conservative in estimating what that might be. We try to work around that, but I think it will be a fairly significant number and further along we’ll get to see what role it will play in mitigating that [tax increase].”
As it stands, the increase falls within a council directive to be no more than inflation, 2.0 per cent, plus 1.0 per cent. If approved, a 2.91 per cent property tax increase that would translate into an additional $93 for the average home assessed at $533,000. The average small business owner would face an increase of 2.98 per cent in property taxes and utilities, totalling $223 on the average assessed value of $500,000.
The increases support a $224.5-million operating budget and a capital budget of about $51 million in 2017.
The increase is composed of:
• Operations up 1.73 per cent.
• Capital investment up 0.63 per cent.
• Victoria Police Department up 0.78 per cent.
• Greater Victoria Public Library up 0.10 per cent.
• Offsetting new property tax revenues due to growth, down 0.33 per cent.
A staff report says the main cost drivers are salary increases, power rate increases, a decrease in traffic fine revenue from the province, and software maintenance agreements. The city has about 800 full-time employees, excluding police. When part-time and casual employees are added, the head count is about 1,000. The proposed tax increases have been partially offset by increased revenue from development and construction permits, plus fees from recreation facilities, Fortis B.C. and sidewalk cafés.
The operations budget includes about $1 million in supplemental funding requests, one of the largest of which, $300,000, is for support and cleanup necessary due to overnight sheltering in parks and bus shelters. Security would be provided at the Beacon Hill Park washrooms from 9:30 p.m. until 2:30 a.m. year round. Portable toilets will be installed in Topaz and Stadacona parks for people overnighting there. Two people are to be assigned to clean up campsites in parks.
Other large supplemental requests include $150,000 for Canada 150 celebrations, $150,000 for high-risk tree removal, $103,000 for parks planning, and $220,000 for the South Island Prosperity Project to foster economic development.
Another $300,000 is earmarked for accelerated local area planning and $100,000 for Victoria Housing Strategy implementation.
The capital plan proposes projects such as:
• Fort Street corridor bike lanes and Heron Cove and Raymond Point bridges along the David Foster Harbour Pathway.
• Rehabilitation of seven residential streets.
• Park and playground upgrades including at Hollywood Park, Raynor Park and Central Park.
• Upgrades to the Conference Centre, parkades and community centres, and to city water sewer and stormwater systems.
City staff are “conservatively” estimating $1 million in additional tax revenue from new construction.
Under city policy, the first $500,000 is transferred to reserves. Staff say the balance could be used to fund supplemental requests or additional capital projects, be transferred to reserves or to reduce taxes.
Staff are also projecting a $2-million surplus carry forward.
