Unprecedented growth and high inflation in Coquitlam are prompting a proposed 10.79 per cent hike in property taxes next year — if all asks are approved.
This morning, Oct. 24, city council started its first of two days of presentations by department heads outlining their wish lists for 2024.
Specifically, city staff are requesting money for:
- six (6) more firefighters
- two (2) more bylaw inspectors
- a housing planner
- a parks project manager (design)
- an accessibility and inclusion co-ordinator
- an emergency management policy and planning co-ordinator
- a payroll co-ordinator
- an inclusion support for recreation programs
In his opening, city manager Raul Allueva told the finance committee that Coquitlam is in a strong financial position and has a good corporate culture that allows the municipality to attract and retain employees in Metro Vancouver's highly competitive labour market.
Still, he said preparing the five-year financial plan is "a balancing act" given that residents want to maintain programs and services amid the cost drivers.
These include rising RCMP expenses, labour increases, Metro Vancouver utility fees and capital cost escalations.
"We are very fortunate the city is in good shape," said committee chair Coun. Dennis Marsden.
"I think we're well positioned to go forward, but this is going to be a challenging year."
Finance director Gorana Cabral laid out the numbers in the draft budget, which council will deliberate over the next month before first reading in December.
For property owners, the planned tax and utility jumps equal $256 more as of July 2024:
- property taxes: $181 (7.71 per cent)
- water rate: $32 for single-family home/$19 for multi-family home (five per cent)
- storm drainage assessment levy: $5 (six per cent)
- sewer flat rate: $31 (six per cent)
- solid waste rate: $7 (two per cent)
But the hikes don't include the taxes collected on behalf of other governments such as the provincial school tax and TransLink.
Noting the average property tax rise over the past five years was about 2.8 per cent annually, Cabral said city staff were mindful of residents' affordability when creating the draft $561-million financial plan — with a base budget of a 7.7 per cent uptick.
And she said they based their recommendations on public input over the year: a townhall in May, a community satisfaction survey in May and June, and an online budget survey in September.
Cabral also noted that the average base tax rise will be about 6.8 per cent over the next decade, which could be offset with the city's Tax Stabilization Reserve created last year to give relief to property owners.
Coun. Craig Hodge said keeping a status quo — as indicated with the public feedback — means a drop in programs and services.
And Coun. Brent Asmundson suggested Metro Vancouver hold back with its spending, saying its rate hikes for utilities are "rather scary" for the next few years.
"They don't look at reducing operations," he said of the agency while criticizing the "over-excessive" costs on the Coquitlam Water Main Project down Pipeline Road.
Deputy city manager Michelle Hunt said staff are keeping an eye on growth revenues that are driven by new inventory, land-use changes and city land sales.
However, like last year, Coun. Robert Mazzarolo pointed the finger at previous councils for not forecasting the tax pressures on residents.
"I think it was a missed opportunity," he said.
Hodge countered that previous councillors didn't have the data, while Asmundson said they did.
Mayor Richard Stewart argued that past councils did they best they could and the COVID-19 pandemic, inflation, labour costs, policing and homelessness have made for volatile economic times in the city.
The mayor said current councillors will also be blamed for their fiscal policies by future civic leaders.
"Let's not make the same mistakes," Mazzarolo responded.
Tomorrow, Oct. 25, the finance committee will hear from department heads in engineering, planning, legislative services and police services, as well as officials from the four cultural organizations:
- Coquitlam Public Library
- Place des Arts
- Coquitlam Heritage Society
- Evergreen Cultural Centre
