Nanaimo budget passes setting 8% property tax hike

City council passed the city’s provisional financial plan on Monday, setting an 8 per cent property tax increase in 2024. Photo: Mick Sweetman / CHLY 101.7FM

Nanaimo homeowners are looking at an eight per cent property tax hike after council passed the provisional financial plan.

This will bring property taxes for the average home in Nanaimo to $2,860 next year.

“I appreciate that nobody wants to pay more,”said Nanaimo Mayor Leonard Krog.” But having said that, we all want to need our services. Imagine a city where you couldn't flush the toilet, or turn on the water, or drive on the streets or recreate in its parks.”

One of the key drivers in the budget is the hiring of 20 new firefighters, in addition to 20 hired this year, the budget also includes a contingency for a new contract with the firefighters union.

“The reality is we were stretching them extremely thin,” Krog said. “This should enable us to deliver services efficiently, but also maintain the health of our firefighters, which is good for the public.”

The RCMP contract includes a $3.8 million increase in 2024, and is also has largest portion of the city’s operating budget at 17.8 per cent or $35 million.

Three additional RCMP officers will be added in 2024, the final year of a five-year plan to add 15 officers.

Asset management for thecity’s aging infascructre is the biggest driver with a projected $1.3 million increase in expenses in 2024.

Construction on phase two of the midtown water supply project is a major infrastructure project that was prompted after a main water main on Bowen Road burst in 2020 spilling 22 million litres of water and causing $250,000 in damage.

Krog says that making sure people have potable water is a priority but comes at a significant cost.

“In constructing the two large water mains that enhance our water supply network, I think some of your listeners may well appreciate that that pipe is a very expensive but very necessary project to running us about $500 a foot without the cost of installation.”

Water user fees are also going up by six per cent, along with a four per cent increase for sewer and 3.2 per cent hike for sanitation fees.

The cost of the borrowing of up to $48.5 million for the first phase of the Nanaimo Operations Centre is not included in the budget as it still needs elector approval in the new year. If approval for the loan is given it will bring the property tax increase to 8.1 per cent in 2024.

Krog says that the spending in the budget on capital projects, such as replacing the public works yard, is necessary.

“For me, the public works yard improvements are another example of that's a need to, it's not a nice to have.”

According to an email from the city’s director of finance Wendy Fulla, if the proposal for the loan through the Alternative Approval Process is rejected, and city council opts to raist the money through taxes, the projected property tax increase will jump to 10.5 per cent in 2024 and 15.1 per cent in 2025.

Krog says that the budget reflects a consensus of city council members.

“This was a budget passed unanimously by a council that is quite diverse in its opinions on a whole range of matters,” he said. “So I think that tells me that we we hit the mark.”

Funding Note: This story was produced with funding support from the Local Journalism Initiative, administered by the Community Radio Fund of Canada.