By NanaimoNewsNOW Staff

5.03% property tax increase projected for 2019

Nov 26, 2018 | 8:54 AM

NANAIMO — The projected 2019 property tax increase for Nanaimo is substantially higher than anything residents have seen in recent years.

City of Nanaimo financial staff presented council with a 5.03 per cent property tax increase on Monday.

Roughly four per cent of the increase is for a general tax increase, funding City services, initiatives and employment. The other one per cent will allocate $1 million to the general asset management reserve.

The average Nanaimo household, costing approximately $464,000, is expected to pay an additional $150 in 2019, bringing the municipal portion of property taxes to just under $2,100. This includes a 7.5 per cent increase to water fees, four per cent in sewer fees and a 3.03 per cent increase in sanitation fees.

The $150 is just a snapshot of the much larger property tax photo. It doesn’t include fees from various organizations, such as the Regional District of Nanaimo, Nanaimo-Ladysmith School District or Vancouver Island Regional Library. Those fees will become clear in coming months.

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In 2018, based on a 2.08 per cent property tax increase, the average Nanaimo household paid $233 more in tax when all fees were included.

When drafting property tax increases, a one per cent increase translates to roughly $1 million in the budget. 

Business and asset manager Wendy Fulla told councillors there’s numerous drivers behind the substantial proposed property tax increase, with changes to the province’s MSP and employer health tax structures representing one of the biggest cost-drivers. 

Fulla said this is hopefully the only year where the City essentially pays twice and have “taken some steps to help eliminate some of that impact of having to pay both in 2019.”

City investment in infrastructure will also rise by $1.1 million to catch up with a previous lack of funding. 

The increased budget includes seven new City positions, including a manager of communications. 

The position was a source of contention in the last round of budget talks by the previous administration, being added and then withdrawn from the budget at the last minute. 

City Clerk Sheila Gurrie, who’s handled much of the communication manager tasks, said a fully-trained communications expert would help guide the City in the right direction. 

“A communications manager will provide the necessary knowledge and experience to guide the City’s communication activities, staff and the ability to respond to crises that might come up.”

The seven new positions added 0.63 per cent to the property tax increase.

Budget discussions are ongoing at the Vancouver Island Conference Centre on Monday and Tuesday, before resuming on Dec. 4. A Question Period is featured at the end of each session for community input. 

Interim-CAO Jake Rudolph told council they hope to have the draft budget finallized by Dec. 5 and approved by Dec. 17. Though the budget isn’t officially approved until May, having the provisional budget in place for the start of the year allows the City to fund their operations and staff until then. 

If the proposed 2019 property tax increase is approved at 5.03 per cent, future increases aren’t expected to be so high. Under this plan, the 2020 property tax increase will be 3.38 per cent.

The proposed increase is nearly double what was anticipated earlier in 2018, before the proposed 2018 property tax increase was whittled down in sudden, late-stage negotiations.

The budget process continues with presentations from the RCMP and other departments on Tuesday.

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