After months of debate, the Municipality of North Cowichan has voted to adopt its financial plan, which includes an 8.42 per cent property tax increase.
A draft budget proposed earlier this year forecast an increase of 10.62 per cent, but council agreed that was too steep for taxpayers already facing financial pressures.
The original proposal was intended to help offset the loss of $820,000 in revenue from the closure of the Crofton Mill and to cover what the municipality described as “uncontrollable costs.”
Those costs include allocations for staff wage increases ($1.6 million), long-term debt ($1.2 million), a $615,000 increase to the RCMP contract and $400,000 for E-Comm 9-1-1 services. The municipality said those costs continue to drive the tax increase.
“If it weren’t for these uncontrollable costs, the increase would be 0.54 per cent,” they said.
Since January, council has trimmed the budget to keep costs down. However, Mayor Rob Douglas said council had aimed to keep the increase close to five per cent but faced several challenges in maintaining services.
“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.”
But some council members said the increase should be higher.
“I think the taxes are too low, even with the increase,” Coun. Chris Istace said. “We are a business that is thriving right now and has more demand for services that is never the time to cut services.
Residents also had an opportunity to speak about the proposed budget last month. Rob Saare said he moved to the region because costs were low but now questions whether retirement is still possible.
“I need to come up with another $5,000 this year to pay for my property taxes, and forego investing in my retirement,” he said. “I don’t have a golden pension package, so now I have to make decisions at home, and why don’t staff and council get on an austerity program?”
Council finalized the budget March 18.
