Property owners in Greater Victoria face a $38 bump in their property taxes next year after Capital Regional District directors voted unanimously this week to approve an $872-million provisional budget for 2025.
The budget, which includes both the operating and capital budgets for the Capital Regional District, Capital Region Housing Corporation and Capital Regional Hospital District, is $95 million more than the $777 million combined financial plan for 2024.
The CRD, which has faced inflationary pressures and the increased cost of delivering services to a rapidly growing region, accounts for the vast majority of the budget, with an operating budget of $410.8 million and a capital budget of $283 million.
CRD chair Colin Plant said the district and municipalities have no choice but to increase taxes, since they can’t run deficits.
“It is very hard to look at the numbers each year and realize this is going to be a challenge for many residents. But we also are trying to find a balance to continue to provide the services that we do. And some of our services are absolutely crucial,” he said, pointing to the CRD’s responsibility for drinking water and sewage treatment.
“We must continue to invest and protect our water. That is not up for debate.”
The proposed CRD operating budget is $42.3 million more than last year.
The biggest chunk of the total will be funded through sale of services — water, sewer and landfill for example — to the tune of $197.5 million, an increase of $24 million.
The second-largest chunk of the budget will be funded by requisition — money collected on behalf of the CRD by municipalities through property taxes.
The budget anticipates requisition will total $96.5 million this year, up from $88.5 million last year.
CRD chief financial officer Nelson Chan said owners of a typical home in the region worth $1 million will pay roughly $728 in taxes, a 5.5 per cent increase from last year, or an extra $38 in 2025.
He stressed the 5.5 per cent average increase is only on the CRD portion of property taxes, not the entire property tax bill.
It will also vary depending on municipality. The tax increase on the CRD portion ranges from 0.3 per cent in Highlands to 13.1 per cent on Salt Spring Island — the size of the tax bill depends on the CRD services each municipality uses.
While the numbers may change before the final budget is approved in March, the provisional budget calls for a 4.1% increase for Victoria property owners, Saanich 2.5%, Colwood 1.6%,View Royal 5.9%, Esquimalt 3.4%, Sooke 5.2%, Central Saanich 5.5%, Langford 7.7%, Metchosin 6%, North Saanich 6.5%, Sidney 5.3%, Oak Bay 6.5% and Juan de Fuca 10.3%.
The budget could change in the spring depending on B.C. Assessment numbers and the possible addition of just over $1 million in new spending on the implementation of a transportation service, a regional housing assessment and a “foodlands access service” to facilitate affordable access to productive farmland.
The $283-million capital budget, up $16.8 million from last year, includes $149 million for drinking water infrastructure, $41 million for wastewater infrastructure and $18 million for recreation and culture projects around the region.
“There are some strategic initiatives that we’re advancing in this budget. It is not just a simply status quo budget,” said Plant.
He said the CRD board considered making cuts to reduce the tax burden next year, but the cost savings would have come from deferring costs rather than cutting program spending.
“It’s always hard to raise taxes and I recognize that it is challenging. But I stand with my colleagues in unanimously passing this,” he said.
Now that the provisional financial plan has been approved, it will be posted online for public comment at crd.bc.ca. Comments received online will be shared with the board as part of the final budget review and approval process in March 2025.
