Higher costs for regional services, in addition to property levy
Kelly Sinoski
Sun
Metro Vancouver predicts the average homeowner will face a 50-per-cent increase — or $661 — in their tax bill in five years as the region grapples with providing sewage, water and garbage pickup services to a growing population.
The increased taxes for regional services are in addition to property tax increases imposed by individual municipalities.
According to a draft budget report for 2010, Metro Vancouver must spend $5 billion in the next 10 years on upgrading its aging infrastructure, including the Iona and Lions Gate sewage treatment plants, and finding an alternative to the Cache Creek dump.
But with money so tight that Metro expects to do only “critical repairs” on infrastructure next year, regional mayors continue to plead for capital funding help from senior levels of government.
“We know that we’ve got some very, very significant infrastructure needs over the next couple of years,” said Richmond Mayor Malcolm Brodie, chairman of Metro’s finance committee.
“We’re seeking senior governments to assist us with this funding and that that will soften the blow considerable depending [on what we get].”
Metro taxpayers next year face a 4.1-per-cent tax increase, which translates to about $37 for an average $600,000 home, bringing total regional service taxes to $469.
The boost is a result of $565.8 million in expenditures, with the biggest hit — $277.3 million — for water, mainly linked to debt and operating costs related to the Metro Seymour-Capilano water filtration plant.
Metro is proposing an 11.9-per-cent increase in its water rates, which means the average household will pay an extra $21, for a total cost of $190. Sewage rates will also jump by $4 to $162 per average homeowner, while garbage fees will rise by $10 to $80.
There are also increases for emergency 911 services, regional parks and air quality.
The draft budget report, which the Metro board will vote on on Oct. 30, also warns that “Metro Vancouver will face significant financial decisions in the medium to longer term.”
Jim Rusnak, Metro’s chief financial officer, said utilities costs are increasing for a variety of reasons and it’s a challenge to keep maintaining and upgrading the infrastructure.
Metro chairwoman and Delta Mayor Lois Jackson said the taxes will go up 50 per cent over last year by 2014, and she’s worried the region’s increasing debt is becoming unmanageable.
“We’ve very concerned about the debt load we’re responsible for in the region for water, sewers and waste,” she said. “Every utility seems to be going up every single year. Debt equals payments by the community. If that gets to be too much, it’s not only us that’s going to suffer but everyone in the future.”
For Port Moody, the regional increases come on top of a 3.2-per-cent hike imposed by the municipality.
“In these times nobody wants to see an increase but somehow we’ve got to deal with the real costs put in front of us,” said Mayor Joe Trasolini.
Trasolini pointed out that aside from the increases for major utilities, communities may also face added costs to fund the expansion of TransLink.
The Metro Vancouver Mayors Council is to meet on Friday to vote on TransLink’s supplement plan, which calls for a $130-million increase to its budget to maintain existing services.
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