By Dominic Abassi

Bad winter blamed for higher than expected property tax hike

Apr 7, 2017 | 5:39 PM

NANAIMO — Taxpayers in Nanaimo will pay more than originally expected this year.

The City announced Friday the proposed property tax increase for 2017 is 2.3 per cent, up from the 1.5 per cent originally approved by Council in December.

Chief financial officer Victor Mema told NanaimoNewsNOW budget overruns for snow and ice control thanks to the bad winter are to blame for the last minute increase.

The City previously cut this year’s snow and ice budget but Mema said they now need roughly $800,000 to cover a shortfall and replenish the depleted reserve fund. A portion of the increase will also cover extensive road repairs to deal with a plethora of potholes around Nanaimo, according to Mema.

Mema was asked why the City would have been able to pay down debt for the proposed events centre without increasing taxes but a hike is needed to cover a relatively minor budget shortfall.

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“It’s not a simple answer,” Mema said. “When we’re talking about the events centre, we’re talking about an asset we’re trying to build. This is a consumption expense…so you are better off either cutting costs elsewhere, which is a cut in services, or increasing taxes to keep that service going. That’s what we’re recommending we do.”

According to the city’s finance department, the 0.8 per cent jump in property taxes translated to a $15 impact on the average home this year.

Mema said Council will likely be asked to approve the increase at the April 24 public meeting. This year’s property tax increase must be adopted by May 15.

dominic.abassi@jpbg.ca

On Twitter: @domabassi