VANCOUVER City Council on Tuesday approved an operating budget for 2023 totalling $1.97 billion, and a property tax increase of 10.7 per cent.
The property tax increase is driven by 1% for additional infrastructure renewal, 1% for reserve replenishment for financial sustainability, 3% for Vancouver Police Department (VPD) services, and 5.7% for funding across all City services, as well as risks around uncertain costs for the whole city.
The updated final budget documents will be made available at vancouver.ca/budget2023.
In the meantime, the 2023 Draft Budget can be viewed online.
The 10.7 per cent tax increase results in the following average property tax increases for 2023:
- $124 for a condo or strata unit (assessed at $759,000)
- $213 for a residential property overall (assessed at $1,301,000)
- $326 for a single-family home (assessed at $1,997,000)
- $549 for a business property (assessed at $1,098,700)
The actual tax notice for each property owner will differ from the above average amounts and will depend on the assessed value of the property, as well as the change in assessed value of that property relative to the average change in that property class. A property’s assessed value is determined by BC Assessment.
These estimates reflect the City portion of taxes only. The amount due on a property owner’s tax notice will also include utility fees, provincial school taxes, and taxes levied by other taxing authorities including TransLink, Metro Vancouver, BC Assessment, and the Municipal Finance Authority.
Background
On November 29, 2022, the Draft Current State Operating and Capital budgets were presented to City Council for information as a starting point for discussion and engagement with Council to help align the multi-year planning with the new Council’s priorities. On December 6, City Council approved the 2023 Capital Budget and deferred the 2023 Operating Budget to early 2023 for further consideration.
VANCOUVER Mayor Ken Sim said in a statement: “Vancouver has been placed in a very challenging position.
“In an effort to keep taxes artificially low, previous administrations chose to severely underfund public safety, road upkeep, sanitation services, and critical infrastructure maintenance for over a decade.
“We have inherited a half-billion-dollar infrastructure deficit, and the City’s cash reserves have been almost completely depleted due to the previous Council’s spending during the pandemic.
“As with many other governments around the region, Vancouver is not alone in confronting the challenges faced by inflation and rising labour costs.
“This budget presented some significant challenges, but we have chosen to invest in Vancouver’s future.
“The investments approved today will lead to better quality roads and sidewalks with fewer potholes, cleaner streets and more frequent cleaning of public spaces, revitalized neighbourhoods, and for the first time in over a decade, police, fire, and mental health services are going to be properly funded.
“Property tax increases of this magnitude cannot and will not become the norm. As we move forward, Council will explore further opportunities to achieve cost savings.
“We will identify new sources of revenue, work with senior levels of government to secure funding for new initiatives, and continue to find ways to deliver services more efficiently and effectively.
“Leadership in government sometimes means making hard choices. Investing now will mean Vancouverites can enjoy a cleaner, safer, more prosperous and vibrant city sooner.”
