Vancouver council demands lower tax rate for next year's budget

Vancouver's city council is no longer debating an 8.2 per cent property tax increase for 2020.

Instead, it will consider three different budget scenarios — each of which would still ensure the city's highest tax hike in over a decade. 

Council sent the proposed 2020 budget back to staff on Tuesday, asking for new proposals that would limit tax increases to five, six or seven per cent. 

"We had floods and floods and floods of correspondence in recent weeks ... centred around the proposed tax increase and the implications for affordability in the city," said Coun. Lisa Dominato, who brought forward the referral on behalf of a number of NPA and Green Party councillors. 

"We need to take a second sober look at this budget, have our staff look back and present some options." 

An 8.2 per cent tax hike would have meant an estimated increase of $354 for the City of Vancouver's portion of the property tax bill on the median single-family home, from $3,809 to $4,163, once utilities were factored in. 

Wednesday, staff will present ways the $111 million in new spending budgeted for next year can be reduced — along with possible reductions to the capital budget as well — to achieve the five, six and seven per cent targets. 

Council will make a decision on the budget the following week. 

Where to cut?

Prior to the Tuesday's meeting, different councillors had different spending increases they either want to preserve or to reduce.

"In general I don't want anything cut out of housing or anything cut out of climate change," said Jean Swanson. "I think those are both ... emergencies that we have to get serious about addressing."

Those items take up approximately $10.9 million in new spending, and Swanson said she'll be pushing for a reduction in new funding for the police department. 

Melissa De Genova said she didn't want to see money taken away from housing and child care initiatives, but said she was keeping an open mind on the budget as a whole. 

"The question is, can we afford it. And at what cost. And I'd hate to see people who live in Vancouver who love Vancouver driven out  because unfortunately this council is again making it out of reach," she said.

Other councillors have proposed giving staff a new number for a property tax increase, and leaving the details of cuts to them. But Wiebe — who wants to preserve $6 million in spending next year for the city-wide plan — said that could be tough. 

"You say 'staff come back', but they're like 'we need more direction," he said. "However, we're not supposed to be granular and being prescriptive ... because that's not our role." 

Highest in Metro Vancouver

Unlike provincial or federal governments, local governments cannot propose budget deficits. Property taxes are annually set by each municipality to ensure enough revenue is raised to pay for annual expenses — though many B.C. communities have seen large surpluses in recent years.   

In the last two weeks, a number of Metro Vancouver municipalities have brought forward 2020 budgets, all with tax increases lower than Vancouver's.

Monday, the City of Richmond passed a budget with an average 4.98 per cent property tax increase for next year, while Coquitlam's was passed with a 2.98 per cent increase for homeowners.

In addition, Metro Vancouver has passed a budget with an average $33 increase in regional property tax levy per household, primarily to pay for utility services like sewage and water.