The Municipality of North Cowichan is considering several factors ahead of its upcoming budget, and despite efforts to limit the impact, staff have recommended a 10.62 per cent property tax increase.
The recommendation followed a presentation by director of finance Teri Vetter, who outlined the need for the increase in a report to a committee of the whole meeting. The report cited higher costs related to RCMP detachment debt at $615,000, an increase of $943,000 to the RCMP contract, full-year contracts for 2025, inflationary increases to most expenses and a five per cent increase for CUPE employees.
Council members expressed concern about the proposed 10.62 per cent increase, with most saying they would like to see the rate reduced by cutting services. However, chief administrative officer Ted Swabey said significant cuts would be required to make a meaningful reduction.
“Just on the surface, council will have to make big changes to reduce the budget down to five per cent,” he said. “Council couldn’t find anything they were willing to cut, so to ‘cut around the edges,’ would be even worse because you’re (council) not going to reduce the budget by percentages.”
With limited time remaining to present the budget to the public, Swabey urged council to act quickly if changes are to be made.
“I know it’s hard, but we have very little time to meet the deadline to get this budget done,” he said. “If you (council) want to revisit the core reviews again, we need special meetings and we need to get on with it this week.”
Despite council’s hesitation, Coun. Chris Istace said he supports a higher tax rate.
“I think the taxes are too low, even with this increase,” he said. “We are a business that is thriving right now and has more demand than it even has, when there is a demand for services that is never the time to cut services.”
Istace said departments are not receiving adequate funding under the current proposal.
“We’re underfunding every department in the municipality,” he said. “We have to be responsible, and I think taxes are too low for the services we offer.”
Mayor Rob Douglas said the budget was trimmed in an effort to reduce the increase to five per cent, but challenges have made that difficult.
“We’re dealing with challenges around our infrastructure, and we’ve had a big jump in our cost for policing,” Douglas said. “We’re also facing costs associated with E-Comm 911. Although we knew that was going to be downloaded to us, it’s a big driver of why taxes are going up this year.”
Staff also recommended creating a tax stabilization reserve that would add an additional two per cent to the tax rate. Staff said the reserve would provide a cushion for future increases.
Council opposed the proposal, and Douglas said it does not make sense to add further pressure on taxpayers at this time.
“We’re already projecting this 10.62 per cent tax increase, and it doesn’t feel like the right time to pile more on top, recognizing that many residents are struggling with the high cost of living and many are mill workers in North Cowichan,” he said.
Council directed staff to submit items for inclusion in the budget to help keep the rate lower. Staff responded with 39 items, including a 50 per cent reduction in council travel, increasing business licence fees from $100 to $150 and increasing the fire department’s capital allocation from $120,000 to $180,000.
Town hall meetings for public engagement on the budget are scheduled for February to gather feedback on the 2026 budget.
