By NanaimoNewsNOW Staff

Proposed 2018 property tax increase up 0.6 per cent, could rise more

Apr 4, 2018 | 1:17 PM

NANAIMO — Barely a month before the deadline for approval, there’s little clarity about the City of Nanaimo’s 2018 budget and what the final property tax increase will be.

Councillors discussed the proposed 3.18 per cent increase during a tumultuous Finance and Audit committee meeting Wednesday morning. Harsh words were thrown across the table, one councillor briefly stormed out and the meeting ended abruptly after more than three hours of tense talks.

The 3.18 per cent is significantly higher than the original 2.6 per cent increase proposed in November 2017 near the start of the budget process. The rise was driven by new investments in health and safety around the City and a 123 per cent budget increase for the CAO’s office.

Finance staff told councillors many directives in the budget were decided by both the CAO and the CFO after consulting senior staff. Both are on paid leave under controversial circumstances.

A budget report from City staff showed the average house would pay roughly $2,000 for the City portion of property taxes, up approximately $62 from 2017, excluding additional fees for the school board and the Regional District of Nanaimo which will raise that amount significantly. The City has yet to respond to a request from NanaimoNewsNOW for the estimated impact on a home including the extra taxes. User fees are also increasing, especially the sanitation fee which will remain nearly 40 per cent higher than it was at the start of 2017.

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The final tax increase is in flux as councillors picked apart several aspects of the budget. They recommended reintroducing a communications director, expected to cost roughly $150,000. Several motions, such as eliminating the role of an in-house solicitor for the City and capping legal fees at $500,000, were sent back to staff for more clarification.

Finance staff are expected to return with more information and several explanations at the next committee meeting on April 11. Staff planned on bringing the budget forward for adoption on May 7. Provincial rules mandate it be adopted by May 15.

The increase is significantly higher than any previously passed by this administration. If this increases passes, their average property tax increase is 1.4 per cent, a number well below the 2.1 10-year average.

NanaimoNewsNOW will have several follow-up pieces in coming days, delving deeper into Wednesday’s discussions.

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