Nanaimo councillors have approved a provisional tax increase of 7.3 per cent for 2023 with the final vote to come in the spring. (City of Nanaimo)

By Alex Rawnsley

budget talks

‘A realistic budget that focuses on public safety’: Nanaimo council green lights provisional 7.3% tax increase

Dec 20, 2022 | 10:59 AM

NANAIMO — A projected 7.3 per cent tax increase is provisionally locked in for 2023.

City Councillors voted unanimously on Monday, Dec. 19 for a 6.3 per cent bump, plus one per cent for asset management next year. It equates to a $179 increase for City taxes on the typical Nanaimo home, or $220 when utility rates are factored in.

Mayor Leonard Krog defended the rise, while also saying he understood the disappointment behind the high number. He said around half of the tax increase was directly tied to public safety initiatives.

“What this is, is a realistic budget that focuses on public safety. It is what the public wants, it is what the community needs so we are meeting the needs of the community.”

Hiring of 40 new firefighters in the coming years as well as additions to the Nanaimo RCMP force and the new community safety officers make up approximately 3.6 per cent of the 6.3 per cent jump.

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Krog pitched the increase as Council responding to a “cry from the community” for more to be done addressing social disorder.

Multiple people around the Council table, including Krog, also pointed to inflation as a major contributing factor.

“If you think groceries are going through the roof, look at the price of concrete, look at the price of steel, look at the price of lumber,” Krog said before the vote. “Look at the cost of the contracts we put out to build and provide those very services that every one of us wants to have.”

Despite the unanimous vote, few councillors were thrilled about raising their hand when called to vote.

Coun. Ian Thorpe said he was “sorry to the public” about the rate rise.

“I quite honestly had hoped we’ve be able to bring forward a lower tax increase this year but the City, like all individuals in our community, has been affected by the rampant inflation that we’ve experienced.”

He added staff and Council have looked, but haven’t seen ways to realistically reduce expenses under the current economic climate.

“For the City to provide the same level of service that our citizens expect and deserve, it simply costs us more,” Thorpe added.

Coun. Janice Perrino spoke the most against the proposed budget increase prior to reluctantly voting for it.

She said the increase will be particularly hard on young families, or seniors on fixed incomes.

Perrino had previously advocated during the budget deliberation process to either forego asset management for this year, or use reserve funds to relieve budget pressure.

Both ideas were not adopted by Council.

“We literally got elected and walked into a 6.2 (per cent increase) before we did any staff increases, particularly for the fire department, so that for me was absolutely shocking. As sickened as I am I’ll support this now, but I’m not so sure about April, we’ll see how it goes.”

The April Perrino referred to is the next time the budget is scheduled to return to Council.

Current figures are projections or estimates and will be refined come the spring.

Director of Finance Laura Mercer told councillors they’ll have a better idea of a return on their investments and other factors which increase revenue and could potentially lower the rate.

However, contract negotiations are among items which can push budgets the other way.

Council must formally adopt their budget by mid-May.

Monday’s vote was taken without coun. Ben Geselbracht, who was absent from the meeting. Councillors Paul Manly and Sheryl Armstrong attended virtually.

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