The City of Nanaimo is beginning deliberations of its 2020-2024 Financial Plan Review, and is eyeing a potential 5.2 per cent tax increase in 2020. (Alex Rawnsley/NanaimoNewsNOW)

By NanaimoNewsNOW Staff

BUDGET TALKS

Nanaimo taxes set for five per cent jump as budget talks begin

Nov 18, 2019 | 2:32 PM

NANAIMO — 2020 City of Nanaimo budget discussions have a high starting point with a five per cent increase of property taxes and user fees.

The projected increase for 2020 contains a 4.2 per cent increase on property taxes as well as the standard one per cent increase for the asset management reserve.

For an average Nanaimo home valued at $516,000, the increase equates to $158 more a year.

Total City fees for the average Nanaimo home will sit at slightly more than $3,100 in 2020.

After years of increases between zero and 2.9 per cent, the City finalized a five per cent jump for 2019. Key drivers for the large bump were a need to increase staffing levels and fixing mistakes of the previous administration.

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City director of finance Laura Mercer told NanaimoNewsNOW their ‘”to-do” list is very long and still includes increasing staffing levels, but she doesn’t expect multiple years of five per cent tax increases.

“I’m not sure if this is something we’ll see as a standard, I’m hesitant to say that we will. There are many factors that go into budgets and it depends on the direction that Council wants to go.”

Through its 2020-2024 financial plan, the City is planning to replenish and reorganize contingency money. A newly created fund is earmarked to help the City pay for emergencies and unexpected events such as tent city.

The fund will contain a minimum balance to cover 60 days worth of operating expenses.

More staffing is also on the agenda for the next twelve months.

“We’re building up capacity in our departments that we haven’t had in a couple of years and that takes some time and money to implement,” Mercer said.

Last year’s budget included four firefighters, three RCMP officers and a city communications manager as major staff additions.

More RCMP positions are expected to be filled in 2020 after Supt. Cameron Miller requested 15 new officers be hired over a number of years.

The City is also planning to place one per cent into a reserve fund for asset management based on 10 and 20 year plans for asset replacement.

“We’re trying to mitigate high swings in taxes because of ongoing life cycle replacement.”

The City begins its formal budget discussions with a meeting on Wednesday Nov. 20.

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