Victoria property owners will face a 2.2 per cent tax increase this year on a $213-million city operating budget that allocates $1 million to social-housing initiatives, $1 million to tax relief and $7.2 million to cycling infrastructure.
Only Coun. Geoff Young voted against the budget, arguing that with the final bill on the Johnson Street Bridge still not in, council could have done more to reduce the property tax load on both homeowners and businesses.
“[I] was indeed surprised that the council didn’t take the opportunity to keep the rate of tax increase down to quite close to the rate of inflation,” Young said, adding he’s concerned the city is shouldering the costs for a number of social and health care issues that should be shared with other levels of government or other municipalities.
“I’m very conscious of the plight of downtown businesses who are paying a high share of our taxes and who are in many cases having a tough time. That’s affecting the vitality of our city,” Young said.
But Mayor Lisa Helps called it a balanced budget. “The thing that signals balance to me is that we’re putting $1 million into affordable housing and $1 million into keeping the tax increase as low as we can. That’s almost symbolic of the balance,” Helps said
“This is the lowest tax increase since [former mayor] Bob Cross went zero, zero and zero and then everyone had to catch up when he left office,” Helps said.
Noting that this is just the first year of a four-year term, Helps said: “I think we’re doing a lot with the resources we’re allocating.”
The budget includes $7.2 million from gas-tax revenue to improve the cycling network, including the provision of separated cycling lanes and $500,0000 to expedite cycling-network improvements over the next four years.
Council consulted extensively and invited the public to comment on how to divvy up $4.5 million in unallocated funds generated from both operating surplus and revenue from new assessments.
Young noted that last month, council received a request from staff for an additional $4.8 million for the Johnson Street Bridge replacement project. At the time, council, wanting to keep a tight rein on bridge funding, agreed to allocate another $1.5 million, but it’s clear the entire $4.8 million and likely more will be needed, Young said.
“So, really, one questions whether we have any unallocated revenue to deal with,” he said.
In addition to boosting the housing reserve fund to $1 million from $250,000, councillors agreed to set aside $45,000 to create storage for homeless people’s belongings.
Other initiatives include: $300,000 for a new interdisciplinary management team, $250,000 for emergency management, $200,000 for expediting local area plans, $125,000 to upgrade washrooms in Centennial Square, $125,000 for split rail fencing and maintenance for Dallas Road, $100,000 for traffic-calming initiatives and $36,000 for community garden co-ordination grants.
A proposal to spend $15,000 a year for health benefits for council members was approved, but won’t kick in until after the next election.
The 2.2 per cent rise translates into a $65 tax increase for the average residential property assessed at $504,000.
