Metro Vancouver tax bite to rise 43.5% in 5 years
Credit to Author: Jennifer Saltman| Date: Wed, 06 Nov 2019 00:22:58 +0000
Homeowners in Metro Vancouver can expect the amount of their property tax that goes to the regional district to increase by 43.5 per cent in the next five years.
The 2020 budget and five-year financial plan have been approved by Metro Vancouver’s board, despite some reservations by directors about escalating costs.
“I question the affordability and sustainability of that level of impact on basically the taxpayer, because there’s only one taxpayer in the sense of having to provide for all of these services,” said Langley Township Coun. Kim Richter. “We must keep our eye on the ball for the escalating costs.”
In 2020, Metro Vancouver, which provides regional services such as water, sewer, garbage disposal, regional parks and affordable housing, is expected to have $890 million in operating expenditures and just over $1.4 billion in capital expenditures.
That means a $33, or six per cent, increase to the amount the average household (assessed at $1.255 million) pays on its property tax bill to Metro Vancouver, for a total of $568.
Over the five years, the average household cost will increase an average of $46 a year, rising to $768 in 2024 from $535 in 2019.
The 2020 increase and the next three years of increases are less than the region projected in its five-year plan last year. For 2020, the increase is $8 less, thanks to $18 in reductions in water and liquid waste, though that was partly offset by a $10 increase for affordable housing, regional parks and solid waste. For 2021, 2022 and 2023, the household impact is estimated to be a total of $34 less than first expected.
Pitt Meadows Mayor Bill Dingwall said he understands the pressures Metro Vancouver is facing to accommodate a growing population and maintain infrastructure, but he doesn’t think the projected increases are sustainable.
“We just need to find a different revenue source,” Dingwall said. A new sales tax or development cost charges are two examples Dingwall cited, and he hopes that in the next few months there is “a very healthy discussion” at Metro about alternative funding sources.
As in past years, most of the increase is for water and sewer projects that accommodate growth, meet regulations and upgrade existing infrastructure.
The liquid waste budget is expected to increase an average of $42 million, or 11 per cent a year, over the next five years. Capital expenditures for 2020 are $883 million, and expected to drop to $634 million by 2024, as major projects wrap up.
The average household in Metro paid $250 for liquid waste in 2019, and that will go up by $14 for 2020. By 2024, the household impact will be $372.
The amount a household pays in sewer levies varies, however, by sewerage area.
Over the next five years, the North Shore will get the biggest increase in levies because of the $882 million North Shore Waste Water Treatment Plant project, which is under construction and will provide tertiary sewage treatment for that area. In 2020, the average household will pay $340, but that is expected to go up to $558 by 2024.
Fraser sewerage area residents will pay $234 a household in 2020, going up to $344 by 2024.
Other major projects include expansion of the Annacis treatment plant, the first stage of work on the northwest Langley treatment plant and design work and ground improvements for Iona secondary treatment.
Over the next five years, the water services budget is expected to increase an average of almost $30 million, or 8.6 per cent a year, with the capital program making up the bulk of that increase. The capital expenditures are expected to rise steadily, from $398 million in 2020 to $541 million in 2024.
The largest capital project in the district is a tunnel that will bring water from the Coquitlam Lake reservoir to the Coquitlam water treatment plant. The plant will also be upgraded. The total cost for the project is $2.3 billion. The Annacis, Second Narrows, Cambie-Richmond and Lulu Island-Delta water mains round out the five most expensive projects.
The average household in Metro paid $172 for water in 2019, and that’s expected to go up to $178 for 2020. By 2024, it’s expected households will pay $239.
The budget also includes $8 million in tax requisitions — about $8 per household — to pay for affordable housing and regional parks development and acquisition.
Board vice-chair Linda Buchanan, who is mayor of the City of North Vancouver, said property taxes are top of mind for most people in the region.
“We have high-service debts, we have large capital projects coming forward. Our operations seem to be on par with inflation, which is great, but we really need to dig deep in the next several months and moving forward in terms of our processes, finding efficiencies, looking at our priorities,” she said.