City of Vancouver proposes 9.7% property tax hike in revised draft budget – and it could go higher

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Homeowners in Vancouver could see their property taxes spike by nearly 10 per cent if the city’s newly revised draft budget gets the green light next month.

The director of finance has proposed a $1.96 billion 2023 Draft Operating Budget in a report that was released to the public Tuesday night.

The budget would be supported by a property tax increase of 9.7 per cent, though individual homeowners could see their tax bills change by larger or smaller amounts depending on how their home's assessed value changed this year.

According to Coun. Pete Fry, the average single family home assessed at $2 million is going to look at about a $450 increase this year with taxes and fees.

According to the staff report a large portion of the increase is being driven by unexpected inflationary pressures that are now expected to continue throughout 2023 and into 2024.

“Municipalities across Canada are also experiencing similar pressures and are implementing higher increases in property tax rates for 2023 than historical levels,” the report reads.

Fry said some of the increase is also being driven by a half-billion dollar infrastructure deficit, due to spending that’s been put off for years. That lack of spending, he said, can be seen in examples such as the front of the Vancouver Aquatic Centre falling apart and cobblestones streets crumbling in Gastown.

“We haven’t been doing a very good job of infrastructure replacement in the past,” Fry said.

“We see what climate change, and storm surges can do (such as) our seawall falling apart. All these pieces are really catching up with us so we need to make those investments if we really want to have a whole city.”

Coun. Sarah Kirby-Yung, said civic finances are also still recovering from the pandemic.

“We are inheriting an empty reserve fund that was depleted during COVID-19, and also an underfunding of the services that residents really value—including public safety,” Kirby-Yung said.

"We're always concerned about affordability. We’re also concerned when a budget doesn't reflect the priorities that we heard loud and clear from residents.”

Policing accounts for 2.7 per cent of the proposed increase, with an increase of just over $28 million. But Fry said that number could go higher, noting tha the Vancouver Poilice Board approved a budget proposal that would see an increase of $38 million.

“The police have actually asked for an additional 1.7 per cent increase on top of that. Whether the ABC majority wishes to endorse that – I’ll guess we’ll find out next week,” he said.

Fry said even if the majority on council does not decide to increase funding for police beyond the proposed amount, the actual property tax amount could end up being higher than 9.7 per cent. He notes that Vancouver Fire and Rescue Services has said it needs to hire at least 55 more firefighters but that an increase that would allow that is not included in the proposal.

“We’ve been putting off for about four years now,” he said. “We’re seeing a fire department that’s really stretched thin.”

The report will be presented to council next Tuesday, with an official vote slated for March 7.

With files from CTV News Vancouver's Becca Clarkson.