Some North Cowichan council members balked at the possibility of a big tax hike in 2025 just to maintain a status-quo budget at a meeting on Jan. 15.
But, after some discussion, council decided to recommend additions to the draft budget that could see the tax increase rise even higher than the 8.4 per cent hike that would only maintain current service levels.
Coun. Tek Manhas said he thinks an 8.4 per cent tax increase is way too high, and that staff should reevaluate the draft budget for 2025 and see what can be accomplished with a tax hike of just approximately four per cent.
“Are all of the services we provide necessary?” he asked. “I think we should do a performance review.”
Coun. Bruce Findlay asked what services staff have considered cutting and what efficiencies have been identified to possibly lower a tax increase.
“There’s a whole bunch of our community members that are struggling, and they’ll be struggling further over the next two or three years as they renew their mortgages with increased interest rates,” he said.
“Increasing taxes for some of these [enhanced additions to the budget recommended by staff] I think is anathema to a majority of our taxpayers. The 8.4 per cent increase doesn’t even include the increase to sewer and water rates and garbage collection. Our residents are getting to the point where they just can’t afford it.”
CAO Ted Swabey told council earlier in the meeting that the municipality’s financial situation as the budget for 2025 is being prepared is dire.
He said the proposed status-quo tax increase of 8.4 per cent in 2025 covers a wide variety of pressures that are out of North Cowichan’s ability to change, including a two per cent increase for 911 services, a 2.14 per cent increase in RCMP costs and a 4.26 per cent increase to account for inflationary pressures and increases in operational costs, including library costs.
Swabey said that if council wants a tax increase less than 8.4 per cent, cuts to services will be required.
Coun. Chis Istace said he’s not willing to go lower than 8.4 per cent.
He said costs are are going up because North Cowichan’s population is growing at an unprecedented rate.
“I understand some residents are suffering, but we also create one of the highest quality of living around, which does incite strong economic development and people to move and relocate here and then continue to invest in it,” he said.
“By cutting costs, we’re just going to shoot ourselves in the foot.”
Teri Vetter, North Cowichan’s director of financial services, said she went through the draft budget line by line reducing expenses wherever she could.
“Honestly, I worry about the budget even with an 8.4 per cent increase,” she said. “I’m worried that at the end of 2025, we will be in a deficit, and that’s just being truthful.”
Mayor Rob Douglas acknowledged that many residents are facing some real financial challenges with the rising cost of living, particularly in regards to skyrocketing costs at the grocery store as well as mortgages and rent payments.
“And here we are facing a tough tax year,” he said. “This is my 11th year around this council table and this is definitely the toughest tax year I’ve had to face yet.”
But council went on at the meeting to recommend that the draft budget include additional staffing resources in fire protection, building and engineering; critical infrastructure upgrades for the Crofton pool, a major culvert replacement, and parks accessibility; and additional operating funding to relocate the Chemainus dog park.
The draft capital and operating budgets will be presented for further discussion at the Committee of the Whole meeting on Feb. 11, and it’s anticipated the first three readings of the budget for 2025 will take place on Feb. 19.
