Taxpayers in the Township of Esquimalt are facing a tax increase of 7.72 per cent this year, after council approved a $106-million budget last week.
The increase in taxes is expected to cost homeowners with property worth $1 million an extra $230 in property taxes this year.
Mayor Barb Desjardins said the spending increase this year reflects the reality of increased labour costs, construction costs and service delivery.
“We do our best to reduce these costs, but yes, it’s going to be tough on a lot of people,” she said.
Desjardins said there were very few frills included in this year’s budget and there is little they were able to pare away from it.
The $106-million budget is significantly higher than the forecasts for the next four years in the five-year financial plan, when projected budgets range from $65 million to $79 million.
That’s because Esquimalt has a massive $57.7 million capital budget this year — the capital budget ranges from $16 million to $24 million for the next four years.
This year’s capital budget includes $35 million in borrowing to construct a $48-million public safety building to house the fire department, an emergency-operations centre and offices for the Capital Regional District.
This year’s budget also includes $20.7 million in labour costs, $9.87 million for Esquimalt’s share of the Victoria police budget and more than $1 million for its share of the Greater Victoria Public Library budget.
Desjardins said the township has also established an infrastructure fund that will help pay for future projects as the town continues to grow.
