Homeowners in the District of Saanich are facing a property tax increase of as much as 6.8 per cent this year, according to the municipality’s draft financial plan.
In what is termed a “status quo” budget, Saanich anticipates spending this year will increase by $10.26 million, for a total of $170.5 million, driven mainly by increased labour costs.
The tax increase will allow the municipality to maintain services at the existing level.
The effect on the average homeowner is anticipated to be about $217.
However, that number could be reduced before the budget is adopted in the spring.
The district is considering a number of measures that could reduce the tax increase by as much $1.2 million by changing the way some services are delivered and funded.
Those measures include being able to access $300,000 usually set aside to fund vacant positions on the municipal payroll that would normally be rolled into a surplus at the end of the year, a change in the way the district finances its information technology upgrade program, deferring for a year an addition of $150,000 for park acquisition and changing the way the district will fund the active transportation plan.
Saanich is also considering $665,740 in additional funding requests mainly for personnel to carry out the district’s strategic objectives.
If all of those additional funding requests are approved and the four recommended cost-reduction scenarios are adopted, the overall tax increase would be reduced to 6.44 per cent, or $9.7 million, which would translate into a $205 increase to property taxes for the average homeowner this year.
Within the $170.5 million operating budget, the largest increases are found in the cost of personnel, which is expected to increase by 3.43 per cent or $5.145 million, and Saanich police have requested a $1.8-million increase in funding to bring its annual budget to $40.6 million.
The district’s capital budget for 2023 is expected to be $95 million, an increase of $2.6 million from last year.
The capital budget includes $76.7 million to fund maintenance and renewal of existing facilities and infrastructure and another $18.3 million for new facilities, technology and transportation initiatives.
Within that capital budget is about $36 million for renewing water resources, $24 million for transportation including $19 million for active transportation projects and there is $18 million to maintain and improve municipal facilities.
Council chose only to receive the budget reports Tuesday evening and has decided to deliberate on them on Thursday.
aduffy@timescolonist.com
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