City of Vancouver 2025 draft budget reveals possible 5.5 per cent increase to property taxes
Posted November 21, 2024 12:39 pm.
The City of Vancouver released its draft budget for the 2025 fiscal year Wednesday night, with spending set to go up by 10.6 per cent.
While it still needs to be approved in December, the budget provides a better idea of what’s to come.
The draft shows operating spending is projected to increase by $226 million over the 2024 expenditure levels to maintain city services like police, fire, and parks and recreation, among other public resources.
City staff anticipate spending slightly more on utilities and slightly less on public safety.
Annual capital spending on public safety would still account for 5 per cent of the budget — or $47 million.
The overall spending increase could mean an increase in property taxes for Vancouver homeowners and businesses.
“Revenue projections include a 4.5% increase in property taxes to address the increasing costs of service delivery and an additional 1% property tax increase specifically directed to address the historical deficit in funding for infrastructure renewal,” said the city manager.
The proposed 5.5 per cent increase would come after council approved a 7.5 per cent hike in property taxes last December.
“To establish the City’s tax rates, Vancouver City Council divides the tax levy by the assessment base provided by BC Assessment for each property class. Under this approach, property tax increases are driven by the City’s funding requirement to support the annual budget, not by rising property values,” the budget document explained.
Combined utility fees — that’s water, sewers, and solid waste collections — are set to increase by 18.2 per cent. The city says that will look like spending $211 more in 2025 for the median single-family home.
The city says Vancouver residents participated in a survey about the budget in August and September, with 44 per cent supporting raising property taxes and 56 per cent asking the city to “work with partners to address the local housing crisis.”
Council is set to consider the draft budget on Dec. 10.
