A 6.4 per cent increase in property taxes for 2024 is being discussed as the City of Nanaimo starts looking at its 2024-2028 draft financial plan. (File photo)

By NanaimoNewsNOW Staff

draft financial plan

Nanaimo eyes 6.4% property tax increase as budget discussions begin

Nov 22, 2023 | 12:46 PM

NANAIMO — Relatively high property taxes are expected for the next two years in the City of Nanaimo, while some long-term relief is expected, according to new projections.

City Council took a look at the 2024-2028 financial draft plan during a special finance and audit committee meeting on Wednesday, Nov 22., showing a projected property tax increase of 6.4 per cent for 2024.

A heightened 7.4 per cent increase is anticipated from the City’s finance department in 2025, but the increase slows to a projected 4.6 per cent rise in 2026, and 2.6 per cent the following two years.

Utility user fees are also projected to increase next year, with a four per cent jump expected for sewer fees, six per cent increase for water, and 3.2 per cent rise for curbside collection.

A typical Nanaimo homeowner with a residential valuation of around $800,000 ($3,504 in taxes and user fees in 2023) would pay $3,715 in 2024, an increase of $211, according to the City.

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City Council locked in a 7.2 per cent increase for 2023, comprised of 6.2 per cent for property taxes and one per cent going to asset management, as is the case in every financial plan.

Revenues for 2024 are expected to be around $247.8 million, with 61.7 per cent coming from property taxes, for the operating and maintenance, projects, and contributions to infrastructure renewal reserves.

A proposed 2024 operating budget for the City would need $197 million to operate day-to-day City Services.

This is the first step in a months-long process to develop the 2024-2028 financial plan.

The proposed plan still has to be examined by staff and deliberated by councillors at several upcoming committee and council meetings.

An eTown Hall on Dec. 4 will allow the public to provide opinions on the proposed budget.

A full adoption of the five-year financial plan must be done in advance of a May 15 deadline imposed by the province.

A link to the City of Nanaimo’s five-year financial plan can be found here.

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