LangfordBԪַs former mayor castigated the new city council for proposing an 11.94 per cent tax hike in its draft 2023 to 2027 financial plan, but the cityBԪַs current mayor is defending its approach.
Speaking with Black Press Media, Stew Young said the new budget proposal shifts the burden from development companies to taxpayers, saddling them with the bill.
BԪַI would lose sleep if I had to raise taxes 12 per cent BԪַ I would resign,BԪַ Young said.
YoungBԪַs comments were in reference to the frequent use during his time as mayor of the general amenity reserve fund to help lower taxes.
The fund comes from money collected from developers, which is charged to them as a condition of rezoning. Those fees varied depending on the type of zoning and were often charged per unit in the case of residential developments. For example, buildings rezoned to the CC2 city centre zone had to pay $3,800 into the general amenity reserve fund per unit.
Previous mayor and council had strived to keep taxes lower BԪַ partially through the use of surplus and reserves and higher-than-expected revenues. Prior to the 2022 budget, city staff had initially pitched a five per cent increase, which was worked down to 2.95 per cent. In 2021, 3.95 per cent became 2.95 per cent and in 2020, 3.49 per cent became 1.9 per cent.
LAST YEARBԪַS INCREASE: Langford proposes modest 2.95-per-cent tax increase; larger increases down the road
To get to the 11.94 per cent hike in this yearBԪַs draft financial plan, $1.7 million from the general amenity reserve was used.
But Michael Dillabaugh, director of the finance department, said continuing to do that wouldnBԪַt be sustainable during the March 27 committee of the whole meeting when the draft financial plan was presented.
BԪַWe have grown to the point where itBԪַs not really sustainable anymore, growing it at least,BԪַ Dillabaugh said. BԪַIf anything, we should be working towards getting off of our reliance on the general amenity fund BԪַ to pay for ongoing operations.BԪַ
Dillabaugh pointed to the higher amounts taken from the amenity reserve during the pandemic years as evidence of that, adding that tax levels should be brought up to pay for operation costs.
BԪַHindsight being 2020, the reality is that while certainly with the information we had at the time I think we certainly made the absolute best decisions we could at the time,BԪַ Dillabaugh said. BԪַThe pandemic didnBԪַt have the impact to the cityBԪַs operations and the ongoing operations of the municipality from a financial perspective that we early on thought that it may have.BԪַ
Mayor Scott Goodmanson says taxes were kept artificially low by using reserves in previous years BԪַ something Young disputes, pointing to his record over 30 years of low taxes.
The tax increase may still change. Funding for the purchase of the YMCA-YWCA Westhills facility, the design phase of the new RCMP detachment, and ongoing capital asset management are also up for consideration. Those items, if approved, could add a further one per cent to this yearBԪַs bill and 3.5 per cent over the next four years.
Young also questioned plans to hire 6.5 new city staff while development has slowed.
Goodmanson defended the money, saying city staff asked for hires in BԪַcriticalBԪַ positions.
BԪַItBԪַs not just about development, itBԪַs about public services,BԪַ Goodmanson said. BԪַWeBԪַre adding BԪַ people every year. Those new residents, there are services that they need, and itBԪַs not just planning for new development.BԪַ
He added while the city is early in its budget deliberations process, with several public meetings between now and a vote, he says the budget mainly covers necessities.
BԪַI wish there were grandiose dreams that council had wished and then we can cut down, but this is a pretty nuts and bolts budget.BԪַ
Taxes would go up by more than $240 for the average residential property with the draftBԪַs proposed increase, according to City of Langford estimates.
The five-year financial plan for 2022 to 2026 BԪַ passed by Young and the previous council BԪַ also forecasted higher tax hikes down the road: 5.84 per cent for 2023, 5.80 in 2024, 7.91 in 2025 and 6.07 per cent in 2026.
ThatBԪַs compared with the updated forecasted figures from this financial plan: 7.75 per cent in 2024, 6.24 per cent in 2025, 5.86 per cent in 2026 and 5.42 per cent in 2027.
READ MORE: Langford draft budget includes 11.94% tax hike, but could change
bailey.moreton@goldstreamgazette.com
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