Why can’t the city keep tax increases to the rate of inflation?

The city uses inflation to help guide how we manage taxes. For the things we are committed to paying in order to continue our current services (like fuel, insurance, equipment and staff), the budget won't go up more than the inflation rate. The proposed budget increase to cover these areas (our base budget and operating impacts of capital and growth) for 2024, 2025 and 2026 is 3.82%, 3.86% and 3.55%, all less than the current inflation rate of 4.28%.

We have also just completed a new Strategic Plan, and as part of that process members of the community, staff and Council identified areas where they would like to see us expand our services. These include expanding the fire department, improving winter sidewalk conditions, and adding more planning resources to help address local housing concerns. These increases for 2024, 2025 and 2026 are 2.64%, 2.44% and 1.89%. While these would be service level increases, they reflect some complex issues that we do need to prioritize (if we don’t ensure our fire department is right-sized for the growth of the city, community safety and resident fire insurance costs are impacted, for example).

There is also a 1% annual increase in funding for infrastructure, to make sure that the roads, pipes, facilities, vehicles and equipment we already have are maintained in good working order and/or replaced as needed. This includes funding to help reduce greenhouse gas emissions at our facilities, a necessary step in addressing our climate emergency.

While the overall budget number is an increase, the budget also includes $1.6 million in efficiencies, which is a 1.75% property tax savings. Staff are continuously looking for ways to improve our services and find savings. Renovating or expanding our existing facilities (libraries, recreation centres, fire halls) on city property instead of building new/buying new property to meet increased demand as our city grows, is one example.

If you're interested in learning more or sharing your thoughts, there will be a Budget public meeting on January 9th. You can attend either in person or virtually. Register for the meeting through the online registration form or complete the Budget feedback survey. Your input is valuable!