Oak Bay residents can expect tax increases this year, which will carry forward into the future.

Although itB次元官网网址檚 still early in the budgeting process, Mayor Kevin Murdoch said they will be required to address the districtB次元官网网址檚 infrastructure deficit.

B次元官网网址淲eB次元官网网址檙e looking at tax increases this year and the next few years as we close that deficit gap,B次元官网网址� Murdoch said. B次元官网网址淭hose tax increases are going to be really targeted directly at our infrastructure.B次元官网网址�

He said the District has had studies to see how much it needs to spend on infrastructure, but current spending patterns are falling short.

B次元官网网址淩ight now, the roads weB次元官网网址檙e supposed to be funding, according to our pavement management study, [are] about $2.8 million per year. WeB次元官网网址檙e currently funding this last year about $700,000,B次元官网网址� Murdoch said. B次元官网网址淪o weB次元官网网址檙e looking at how to increase that.B次元官网网址�

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He noted for roadwork there are cost savings if the District is more aggressive because repair costs can increase as roads deteriorate.

According to Murdoch, Oak Bay gets about $800,000 a year from gas taxes, but recently that money has not gone back into roads. Rather, it was going into sewer projects and infrastructure reserves. Even if all of the gas tax went back to roads, Oak Bay would still be $1.3 million short of its targeted pavement spending.

Underground infrastructure B次元官网网址� storm, water and sewer B次元官网网址� will also need about $2.7 million per year, Murdoch said.

B次元官网网址淥f the three options put forward by staff in terms of what we could do, one was essentially the status quo, one was a moderate increase and one was more aggressive B次元官网网址� or what they called a faster approach. Which is really adding two per cent per year to the taxes to ramp up that piece for the infrastructure,B次元官网网址� Murdoch said regarding the underground infrastructure. B次元官网网址淲hile it wasnB次元官网网址檛 a final decision, the direction from council was to look at the faster B次元官网网址� the more progressiveB次元官网网址� approach, the two per cent per year.B次元官网网址�

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Murdoch said that would raise about $5.5 million by 2022. Funding pavement projects fully could require additional increases, depending on councilB次元官网网址檚 priorities.

B次元官网网址淔or us to do these big projects we need to have a lump of cash available, even if we borrow,B次元官网网址� Murdoch said.

He noted part of the problem is that in past years Oak Bay hasnB次元官网网址檛 directly tied its budgeting processes to its strategic planning processes. ItB次元官网网址檚 something he said the current council is working towards. He expects during the strategic planning session on Feb. 13 that all of the infrastructure, capital and operational projects will be listed together with some rough costing attached. Council can decide what should be given priority during the next phases of the budgeting and strategic planing processes.

jesse.laufer@oakbaynews.com
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