Saanich homeowners can expect to see a property tax hike of as much as 6.8 per cent this year, according to the district’s draft financial plan.
The “status quo” budget received by council at a special committee of the whole meeting Tuesday (March 7) anticipates a projected increase of about $10.26 million in municipal expenditures, amounting to a total operating budget of just over $170.5 million for 2023.
Driving much of the tax increase, according to director of finance Paul Arslan, is the incremental costs of labour associated with increased service levels and new initiatives approved by council, as well as negotiated increases and provincial and federal programs.
By far the biggest budget increases are in the cost of personnel, expected to climb by $5.14 million or 3.43 per cent, and the Saanich Police Department which requested an additional $1.8 million in funding to bring its annual budget up to $40.6 million.
This year’s capital budget is expected to be $95 million, which includes $76.7 million to fund maintenance and renewal of existing facilities and infrastructure, and $18.3 million for new facilities, technology and transportation initiatives.
The proposed financial plan will allow the district to maintain its existing service levels, while costing the average residential taxpayer an extra $217.
But council is looking into four cost-reduction scenarios recommended by staff to reduce the tax increase by as much as $1.2 million by changing how some municipal services are funded and delivered.
The scenarios include being able to access $300,000 typically reserved for funding vacant staff positions, deferring an addition of $150,000 for park acquisition for a year and changing the way the district finances its information technology upgrade program and funds the active transportation plan.
The district is also considering $665,740 in additional funding requests to fill positions that align with its strategic objectives, which would reduce the overall tax increase to 6.44 per cent, or $9.7 million — bringing down the property tax increase for the average Saanich homeowner to $205 if approved alongside the four cost-reduction scenarios.
Council will deliberate the draft budget Thursday (March 9).
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