Vancouver set to introduce region’s lowest tax rate in 2010

Internal spending controls have allowed for Vancouver's lowest rate of taxation in many years.

At next week’s council meeting, Annette Klein, Director of Budget Services for the City of Vancouver, will present an administrative report on the 2010 operating budget preliminary estimates.

In it, the “funding shortfall of $61.7 million, equivalent to a property tax increase of 11.2% before considering anticipated revenue increases,” is acknowledged.

If you listen to Councillor Suzanne Anton,  or the boys over at City Caucus, this was going to mean record tax increases for Vancouver property owners.

But because Council “directed staff to come up with a budget with no increase in property taxes,” as previously referenced by Councillor Raymond Louie, this report is recommending not only Vancouver’s lowest tax increase in many years, but also the lowest when compared to the 2009 tax rates of neighbouring cities.

Through cost savings, internal efficiencies and a temporary bridging strategy, the report recommends that:

“…the Director of Finance, in consultation with the Corporate Management Team, report the interim estimates to Council by December 1, 2009, along with options to achieve a property tax increase between 1.5% and 2.0%…”

Take a look at the tax increases across Metro Vancover in 2009:

CLICK IMAGE TO ENLARGE

As can be seen, 1.5 to 2 per cent is far and away the smallest number when compared to all municipalities listed.

Like I mentioned in my piece for the Vancouver Sun:

“…keeping any property tax increase to a minimum…is a commitment that will be dependent on the progress made with the budgetary review and consultation occurring over the coming months.”

So unlike the rhetoric coming from the naysayers, fiscal responsibility and reasonable taxation go hand in hand.

Good governance means looking internally to improve before placing the burden on the backs of taxpayers.