You’re not alone: taxes are going up everywhere

Most residents in the CRD will be paying higher property taxes this year.

For many municipalities, mounting water, sewer, and policing wage and operating costs represent large budget increases that have worked their way into these tax increases.

The inflation rate used for most 2023 municipal budgets represented a decade’s high at 6.96%. This year’s inflation rate is about half that, 3.71%, but is still driving operating costs up across budget lines.

Back in January, Victoria reduced its November draft property tax increase to 7.93% from 8.37%, alongside its approval of a $72.1-million police budget but its final financial plan won’t be tabled until next month.

‍ Sidney's increase is just above 6%, but that could double next year

Sidney council’s draft financial plan called for a property tax increase of 8.42% but in response to pressure, councilors were able to land on 6.04% “by rejecting several initiatives and funding certain others from internal reserves and surplus.” But that reduction may not last. According to budget notes, the projected tax impact for 2025 is 11.38%.

In its financial plan, Sidney’s council said “Local governments are under increasing pressure to respond to service needs in areas that have not traditionally been local responsibilities. Factors such as affordable housing, homelessness, climate change, increasing accessibility, and medical first response have added to already demanding pressures to address the more traditional municipal needs, like infrastructure replacement and the expansion of recreational opportunities.”

Over in Central Saanich, a hike of 7.76% in addition to increased water and sewage rates means residents will have to find at least an additional $300 in their household budgets this year.

In Saanich, councillors began with a draft financial plan property tax increase of 8.69% but managed to reduce it to 7.91%, which likely doesn't address the concerns of pensioners whose incomes often heavily rely on their Canada Pension Plan and Old Age Security—and for whom even a $300 tax increase can be prohibitive.

Langford’s property tax hike of 15.6% was the highest in the region ‍

Council unanimously approved the increase last week. Signs were coming for the change after Coun. Keith Yacucha and others raised serious concerns, about what he sees as the council’s dependence on its amenity fund to lessen increases in property taxes.

"It is not sustainable to continue this practice,” Yacucha said. “Making this a long-running practice brings in financial risks.”

Though raising taxes is never popular, some residents said they prefer a tax increase. In her letter to the council, Langford resident Penny Henzig wrote, “It does not make sense to delay this any longer. It will be great to see the General Amenity Reserve Fund being used for its intended purpose… general amenities.”

Langford’s council will consider first, second, and third readings of the Financial Plan Bylaw and 2024 Tax Rates Bylaw at its meeting on April 16.