With civic elections looming this fall, Port Coquitlam residents are on track to see the lowest property tax increase since the current council was elected in 2008.
Homeowners will likely see a 3.9% tax hike this year after council voted unanimously Monday to grant the first three readings to the city's five-year financial plan.
The budget, which predicts slow global economic growth, focuses on setting money aside to close the infrastructure gap and refill reserves after a flurry of construction projects in recent years.
"We are looking at the long-term approach to financial planning," said Mindy Smith, the city's director of corporate services. "It started last year and we are going forward with it because we know there is a big need."
The five-year plan includes an average $700,000 annual increase to address the sustainability of city services, particularly infrastructure, much of which is expected to come up for replacement in the coming decades. Another $220,000 is also being added to the 2011 budget as part of an effort to extend the life of roads and civic facilities.
But while much of the report discusses sustainable finances, PoCo Mayor Greg Moore said there are still some projects the city will need to consider in the next five years.
Staff and council are currently discussing the creation of a sports field strategy and Moore said the PoCo rec complex is due for expansion.
"There are major projects that need to be done because we are a growing community," he said.
The mayor also denied the November election had any impact on the city's financial planning this year. Had council tried to artificially lower the property tax increase to please potential voters, it is unlikely so much money would be set aside for infrastructure reserves, he said.
"We are managing the city's resources for the long term," he said, "not just the next six months."
The planned tax increase is close to what was predicted for 2011 in the 2008 five-year plan, he said, and reflects the fact the Coast Meridian Overpass, the most expensive infrastructure project in the city's history, is complete.
Utilities are also expected to see an increase in the 2011 budget. The water levy for an average single-family home in PoCo - one with an assessed value of $466,000 - will increase by $34, although that expense will be offset somewhat by a $5 reduction in the sewer levy and no increase to the solid waste levy.
Much of the utilities are flow-through costs from Metro Vancouver that the city collects but has little control over. When all of the costs are totalled, the owner of the average single-family home will see a $99 increase in total charges this year.
