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North Saanich manages to trim planned property tax increase

One per cent reduction achieved by altering infrastructure replacement reserves transfers for 2023
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District of North Saanich residents can expect a 4.9 per cent increase to their municipal taxes this year after council approved a measure to reduce the originally planned increase of 5.9 per cent. (Justin Samanski-Langille/News Staff)

North Saanich residents can expect to see a tax increase of just 4.9 per cent this year after council approved a tax-saving measure Monday (March 27).

During the special council meeting, council voted 4-2 to reduce the planned tax increase by one per cent from the 5.9 per cent increase outlined in the draft 2023-2027 Financial Plan. Couns. Phil DiBattista and Jack McClintock were opposed.

The meeting was the first held since Brett Smyth resigned from his councillor position, meaning there were only six voting council members.

The one per cent reduction to the planned municipal tax increase was made possible by eliminating a planned one per cent, or $118,000, increase in tax-funded transfers to the district’s infrastructure replacement reserve funds. The district will still transfer $542,000, not including any budget surplus transfers into the reserve fund in 2023, which is the same amount transferred in 2022, not including surplus transfers.

READ MORE: North Saanich councillor who called mayor ‘Mr. Hitler’ is now resigning

Previous councils had committed to increasing annual transfers to the fund by one per cent each year in an effort to close the gap between infrastructure funding and the funds needed for future infrastructure replacement.

Despite stating it would be beneficial to continue that trend of increasing annual transfers, staff told council on Monday they saw little potential for a pause on that increase to have any negative impacts on the district’s overall financial situation. They said, however, that this conclusion was based on council reinstating the one per cent increase to transfers either in 2024 or 2025.

Mayor Peter Jones told council he supports the reduction in the planned tax increase given the tough economic times the community is living in, with inflation sitting around 7.5 per cent, adding it was council’s responsibility to show them the district is aware and working to help where it can, even if it will work out to savings of less than $20 per year for the average home in the district.

In defending their opposition to the motion, DiBattista and McClintock questioned the value, beyond simply providing positive optics for the district, of saving taxpayers so little money for one year compared to the potential impacts on the district’s finances 20 years down the road. Both councillors said they would prefer the tax increase for 2023 remain at the originally planned 5.9 per cent.

Following the approval of the reduced tax increase, council voted 5-1 to approve the draft 2023-2027 Financial Plan with the amendments made to enable the savings, and directed staff to prepare the formal budget bylaw for council to approve at a later date. McClintock was the lone dissenter.

READ MORE: Central Saanich council rejects bylaw dealing with council pay increases


@JSamanski
justin.samanski-langille@goldstreamgazette.com

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