Skip to content

Proposed Lantzville financial plan would require 11% property tax increase

Council will extend budgeting into the new year to allow for further examination and public input
31120506_web1_221130-NBU-Lantzville-Increases-1_1
Lantzville District Hall. (News Bulletin file photo)

The District of Lantzville is working on its next financial plan, which includes a proposed 11-per cent property tax increase – or, as district staff put it, an extra three Starbucks lattés a month for a typical household.

The first budgeting meeting for the 2023-27 draft financial plan was held on Nov. 23 and director of financial services Raj Hayre discussed how inflation costs impacted operations.

“In terms of maintaining levels of service, there are some provisions for additional human resources included,” he said. “There is also an increase in bylaw services hours. We also need to make whole our budgeting provision for software licensing fees.”

In regards to funding deficits and future planning, Hayre noted that the contributions made to asset management reserves were insufficient for life-cycle maintenance. He said the district is also required to make a contribution to park land capital reserves, as well as provisioning for future policing costs.

The draft detailed $198,300 for inflation-based costs, $164,600 to maintain levels of service, and $65,300 to go toward funding for reserves, totalling $428,200.

Hayre said $80,000 could be funded through additional revenues, leaving $348,200 that would be need to be tax funded – potentially leading to a property tax increase of 11 per cent from the previous year.

The report noted that a property assessed at the average 2022 value of $1,033,000 would see an increase of $179 annually, bringing the proposed District of Lantzville taxes to $1,758. The report compared the $15-a-month impact for the average assessed property to the cost of three lattés from Starbucks.

The draft financial plan noted no increase in user fees for utilities, and that the quarterly charge for sewer would remain the same at $128 for 2023. The finance director said additional revenue from newly connected properties would cover the anticipated cost increases and expenditures. Water utility fees, however, will potentially go up six per cent, primarily driven by the anticipated increase in bulk purchases from the Regional District of Nanaimo, raising the quarterly base rate from $80 in 2022 to $85 in 2023.

As the district provides curbside pickup for garbage, recycling and food waste through the RDN, the quarterly billed collection fee is expected to rise roughly $5, bringing the charge for a typical household to $165 annually.

“So you’re looking at an overall increase in municipal services costs of just under eight per cent for all of these services combined,” Hayre said.

There was plenty of discussion around the table regarding the breakdown of the budget and adding line items to the draft, including for bylaw services, legal costs and janitorial expenditures.

As per Coun. Jonathan Lerner’s motion, district staff provided copies of the itemized budget for independent review that included last year’s actual amounts, projected and year-to-date amounts this year, and proposed amounts for next year.

“I think it will be helpful for a new council to come in and be able to see that,” Lerner said. “We’re required to carry out financial responsibilities and fiduciary duties. I believe this will best be fulfilled for a new council with a full knowledge of the budget.”

Lerner also made a motion for council’s schedule to be adjusted, removing a Nov. 28 special council meeting, and adding an additional special council meeting on Jan. 23 to further discuss the financial plan, with the potential to add more meetings in the future.

“I just believe this level of detail for a new council helps us fulfill our duty to the public and also helps the public understand what they’re looking at … I think we really need detailed information and a lot of public input,” he said.

READ MORE: Lantzville council’s first order of business is new tree protection bylaw


mandy.moraes@nanaimobulletin.com

Like us on Facebook and follow us on Twitter



Mandy Moraes

About the Author: Mandy Moraes

I joined Black Press Media in 2020 as a multimedia reporter for the Parksville Qualicum Beach News, and transferred to the News Bulletin in 2022
Read more