Property owners in Port Moody could be facing an 11.33 per cent tax increase this year — more than double Coquitlam’s.
That’s the draft estimate in a report by the city’s manager of financial planning, Tyson Ganske, which will be submitted to the finance committee on Tuesday.
Ganske said the double-digit boost is based on approval for all new funding requirements, such as additional staff positions and new operating expenses to meet ongoing service demands.
Without those new funding requests, the tax hike would be a more modest 9.92 per cent.
In his report, Ganske said the city is facing several financial challenges, including inflationary pressures that are increasing costs for transportation, insurance, construction, contracted and professional services and software maintenance.
In turn, high inflation is exerting pressure on wage settlement’s for Port Moody’s unionized workers whose collective agreements expired in 2021 and 2022.
As well, Ganske said, local governments are being expected to take on a greater responsibility for initiatives like affordable housing, childcare, mental health services and homelessness while also coping with costs that come from extreme weather events and the ongoing COVID-19 pandemic.
“As a result,” he said, “budget considerations must take into account the need to address these pressing issues while also balancing the limited resources available.”
Ganske said without revenue generators like a casino, paid parking and sufficient development fees, Port Moody is struggling to keep up with the kinds of service levels neighbouring cities such as Burnaby and Coquitlam can offer to their residents and visitors.
Meanwhile, more people are moving to the city, further increasing demands on services.
Ganske said the draft budget includes the reinstatement of several services that were cut during the COVID-19 pandemic to save money.
They include the return of an events coordinator position that was eliminated in 2020 along with funding and city support for events like Golden Spike Days, Canada Day, Holiday Cheer at the Pier.
As well, the draft budget anticipates the creation of several new jobs including three full-time equivalent positions in the fire department, one full-time equivalent position in the police department and two full-time positions in the parks department to allow the city to keep up with service demands.
Those represent an increase of almost $900,000, or 1.85 per cent of the tax boost.
Last December, the finance committee also approved the expenditure of $18.5 million for capital projects for 2023. They include:
- road reconstruction and rehabilitation in various locations
- water and drainage reconstruction along the Ioco Road corridor
- improvements to the dressing rooms at Arena 1 in the recreation complex
- upgrades of traffic signals, street lights and bus stops
- utility projects at Stoney Creek and the Alderside foreshore
On Feb. 13, Coquitlam councillors gave first, second and third readings to its operating budget that will see property taxes jump 5.48 per cent in that city (or an average of $185 more for property taxes and utilities combined for a single-family home valued at $1 million). That bylaw is expected to receive final approval on Feb. 27.
