Property taxes are set to increase by 5.2 per cent to pay for many additional City Hall staff. (File photo/NanaimoNewsNOW)

By NanaimoNewsNOW Staff

enter tax man

Prelim 2020 property tax increase set at 5.2 per cent

Dec 16, 2019 | 12:36 PM

NANAIMO — The property tax increase is set be five per cent or more for the second year in a row.

Nanaimo councillors gave first, second and third readings to the City’s provisional financial plan on Monday, Dec. 16.

This provisional property tax increase is in place to ensure the City has the funds to operate beginning Jan. 1, 2020. The number can fluctuate until May, 2020 when the final tax increase in approved.

It includes a 5.2 per cent property tax and asset management reserve increase for 2020, on top of rising user fees for water and sewer.

For an average Nanaimo home valued at $516,000 with an average assessment change, homeowners are expected to pay an additional $158 for property taxes and user fees.

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This does not include fee and tax increases for the Regional District of Nanaimo, the hospital or the library.

City finance director Laura Mercer told Council the budget was built to enable key investments in the community.

“(We’re) funding new amenities including a Harewood youth park, a multi-year replacement project for Fire Station #1…and the completion of the first lit baseball field in Nanaimo at Serauxmen Stadium,” Mercer said.

The increase is also expected to pay for a manager of Economic Development Services, who will be assigned to boost the City’s economic development and hopefully bring additional revenue to City coffers.

Three new Nanaimo RCMP officers will also be on the streets due to increased funding.

The second and third readings of the bylaw were passed by an 8-1 vote. Councillor Jim Turley objected to the use of reserve funds in the budget for Front Street bike lane development.

“I believe the money should be going to lighted street crossings where pedestrians are actually in places, being challenged and being hit,” Turley said. “I feel the money would be far better used there so that’s why I can’t support this particular plan.”

In 2019, councillors passed a five per cent property tax increase to fund City services. At the time, the 2020 property tax increase was expected to be around 3.6 per cent.

During the previous administration, the average property tax increase hovered around two per cent.

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