We knew it was coming, but it was still a shock. The capital budget for the Capital Regional District is going up 50 per cent, largely because of the sewage project.
Now that the bills are starting to come in, regional directors must guard our money so spending does not get out of hand.
Last week, directors approved a capital budget of $157.2 million, including $65.5 million related to the sewage-treatment project.
Taxpayers in the core area will face big numbers as construction on the $765-million plan ramps up.
“Most of what is driving things this year is, of course, the core area [sewage] project,” said CRD chair Barb Desjardins. Taxpayers in outlying communities, not part of the sewage project, will be spared much of the pain.
Some municipalities bill sewage-treatment costs through property taxes, so their residents face double-digit tax increases. Langford residents’ CRD tax bill will increase 14.67 per cent. Colwood residents will pay 13.73 per cent more and View Royal residents 17.95 per cent.
In other municipalities, sewage-treatment costs are paid through utility bills, meaning lower percentage increases for property taxes. Victoria residents will see a 3.36 per cent increase, Oak Bay 6.66 per cent and Saanich 5.38 per cent.
Sewage isn’t the only bill to be paid. Other major projects include $16 million for a 911 unified answer centre, $28.3 million for drinking-water projects and about $3 million for the E&N Rail Trail. Adding the CRD’s plans to those of the Capital Regional Hospital District and Capital Region Housing Corp., capital budgets total $192.8 million.
It’s a lot for taxpayers to swallow when the CRD’s operating costs are going up nine per cent. In addition, municipal councils are finalizing their budgets and will undoubtedly look for at least an incremental increase. Property taxes seem to climb annually by about 2.5 per cent.
There’s only so much room for taxation on property, and locally we’re nearing the limit.
Langford Mayor Stew Young thinks that with the sewage project looming, the CRD should rein in everything else for three or four years.
It’s a prudent idea. There are lots of things we might want, but the sewage project has to push other priorities onto the back burner, especially as the region will be solely responsible for any cost overruns.
This project has been plagued with problems from the outset. A wise course would be to prepare for more unexpected roadblocks — and costs.
Desjardins said the board has been raising the tax levy incrementally for sewage to reduce overall costs and make sure there is enough money for capital and operational spending.
That might ease the pain, but it is not the same as reducing unnecessary spending. Taxpayers don’t need any more shocks.
