Vancouver 2024 draft budget worth $2.15B will require 7.6% property tax increase if approved

A 2024 draft budget made public by the City of Vancouver says property taxes will increase 7.6 per cent next year.

The operating budget, which will be presented at a special council on Dec. 5, is worth $2.15 billion, an increase from the $1.97-billion 2023 budget passed by Mayor Ken Sim and his majority ABC party council that required a 10.7 per cent property tax increase.

The draft budget, if approved in December orearly next year, will cost the median residential strata unit owner an extra $100, the median single-family home owner an extra $263 and the median business property owner an extra $478, according to a summary in the draft budget.

ABC Coun. Lisa Dominato said council worked hard to lower the increase slated for 2024 compared to the previous year.

"We wanted to bring that property tax down over the next year, recognizing that families and small businesses and others are facing really difficult times," she said.

She did not commit to reducing the proposed increase in months ahead, but said changes to the proposed budgetcould be possible in upcoming discussions.

Cops, firefighters and Chinatown

The budget's key investments include full-year costs of requisitioning of new police officers, enhanced mental health support delivered by Vancouver Coastal Health, the addition of 22 firefighters for Vancouver Fire and Rescue Services and the Uplifting Chinatown Action Plan.

The 7.6 per cent property tax increase includes one per cent for additional infrastructure renewal, 2.8 per cent for Vancouver Police Department (VPD) services and 3.8 per cent for "funding to other city services as well as risks around uncertain costs across the city, inclusive of VPD," it said.

The draft budget said the city continues to face "challenges" to its financial outlook from high inflation, a tight labour market, supply chain problems, high interest rates, a risk of recession in North America and even the ongoing war in Ukraine.

Staff did manage to identify $15 million in additional new revenue streams to offset increases to property tax and utility rates increases. Water, sewer and solid waste utility fees are set to increase 7.7 per cent next year.

"Staff will continue to explore new revenue streams, service improvements and capacity building, and continued advocacy for senior government funding and partnerships to inform future budget processes," said the draft budget.

In April, Sim announced an external task force that is also looking at the city's budget for any efficiencies and potential new revenue streams.

"What are the opportunities at the city level to reign in spending, be more efficient, streamline?" said Dominato. "It's about finding a balance."

A report from that task force is expected to be presented to council on Tuesday.