City council is looking at a 7.32 per cent increase in property taxes for 2024.
The “persistent high inflation” seen both locally and globally is among the main cost-drivers for City of Chilliwack, said Glen Savard, director of finance, during the Nov. 21 budget presentation to city council.
“Municipalities are not immune from the effects of inflation,” Savard said, adding that most cities are facing similar budgetary challenges and pressure to service delivery. “This presents cost containment challenges.”
As an example he showed that the cost of asphalt for the city’s road rehab budget had ballooned by 46 per cent since 2021.
“This means without an increase to the budget to address the cost escalation, less roads would be paved and the overall program would fall behind,” Savard explained.
The proposed 7.32 per cent property increase includes 5.55 per cent in “general service inflation and non-discretionary costs” that allows City of Chilliwack to ensure its financial obligations are met, with routine and preventative, major maintenance to facilities and infrastructure, and 1.77 per cent to fund “service additions.”
In terms of additional services they’ve listed a new “legislative services specialist” as well as a new “long-range planner” to support new Housing Supply Act provincial legislation.
Last year’s tax increase was 4.49 per cent for property taxes in Chilliwack, which was a lower tax hike than most Lower Mainland cities.
Chilliwack managed to mitigate its tax increase in 2023, despite the inflation pressure, by “limiting additional budgetary service inclusions,” the finance official said.
In terms of policing and fire protection for 2024, three new RCMP members are budgeted, with five RCMP support staff and community policing to “help relieve regular members to focus on general policing duties.”
Only one new firefighter position is in the budget.
Continuing its pay-as-you-go philosophy and policy means the city carries no debt, and that it funds all capital projects from reserves.
“The City continues to be in an enviable financial position, having zero debt,” Savard said.
A public information meeting on the city budget is Dec. 5, 6:30 p.m. Feedback can be emailed to budget@chilliwack.com, with more info at www.chilliwack.com/budget.
