A local watchdog group slammed the Capital Regional District board Thursday for approving a provisional operating budget that calls for a 6.2 per cent spending hike next year — more than double the rate of inflation.
The Grumpy Taxpayer$ of Greater Victoria criticized the $16.2-million increase as unaffordable and out of touch with the lives of many residents in the region.
John Treleaven, vice-chairman of the group, said property tax increases that help pay for the spending hike will get passed on to renters, seniors and the working poor, many of whom are living paycheque to paycheque.
Business owners will get hit by even higher tax hikes than homeowners and will have to pass those along to their customers, he said.
Treleaven argued that the CRD board should be paying closer attention to whether taxpayers can afford budget increases that exceed the rate of inflation every year.
“The debates tend to be focused on things other than affordability,” he said. “And here we go again.”
He urged board directors to search for efficiencies and reconsider the increase before finalizing the budget at the end of March.
“Is there an opportunity to do something other than what we’ve been doing year over year over year?” he said.
Saanich Coun. Colin Plant, who chairs the CRD board, said he has always open to feedback and criticism.
“I believe the board tried to find the right balance to provide the services that residents value with making sure we fund it appropriately,” he said.
“I acknowledge that some people will say we haven’t found the right mark, but what we’re talking about in the region is likely about $1 per household more per week next year.
“Obviously, some people will pay less than that, depending on what services their municipalities belong to. But, overall, we’re talking about $1 a week.”
Stan Bartlett, who chairs the Grumpy Taxpayer$ group, said that still doesn’t justify a 6.2 per cent increase.
“The fact is that shrinking disposable income is pushing more and more Canadians into debt,” he said. “It’s poverty by a thousand tax hikes and the CRD increase is just one of them, and even if it’s relatively small, that doesn’t justify it.
“Everyone uses that same argument — ‘but it’s not much’ — and it’s bogus.”
The CRD’s provisional budget initially proposed a $15.1-million increase in spending to $277 million to cover inflationary pressures, rising operating costs, the core-area sewage treatment project and debt servicing.
The board, however, approved an additional $1.1 million, most of which — $925,000 — will be used to cover an annual shortfall needed to repair and replace trails, dams and other assets in regional parks.
Budget documents show that about 26 per cent of the district’s operating budget is raised through property taxes, while about half comes from the sale of services.
As such, the pool of money raised through property taxes is expected to grow by nearly eight per cent next year to $72.9 million.
The impact on homeowners will vary depending on where they live and whether their municipality participates in certain services — such as the core-area sewage treatment plant.
Preliminary figures project property tax increases ranging from 3.9 per cent in Sooke ($18.28 a year for the average household) to 10.6 per cent in Langford ($39 a year).
Those numbers will likely change, however, since they don’t reflect the additional $1.1 million in spending approved Wednesday.
As well, year-end adjustments and revised assessment numbers will alter the final figures. Any tax increases will be offset by the Capital Regional Hospital District’s budget, which is proposing a four per cent tax cut.
The hospital district expects to benefit from annual lease payments of $4.3 million for The Summit, a 320-unit long term care facility near Hillside and Quadra.
Public consultation on the CRD’s provisional budget will begin once documents are updated and available for review, the district says.
