Probably not something all you taxpayers across this great city want to hear going into another year: Expect a hike to your taxes.
Why?
“The trend of costs growing faster than inflation is expected to continue over the next four years and beyond. As a result, the city will be challenged to continue to keep property tax increases in line with inflation.”
That, of course, did not come from the mouth of Mayor Gregor Robertson or his Vision councillors during the election campaign. Kind of a bad strategy, I would think, to say vote for me and I’ll raise your taxes.
Anyway, found that nugget of information about the pending hike in a city budget document that outlines what kind of budget year it will be in 2015. You can read this on the city’s website but I’ll share a few points here:
• The gap between estimated revenues and expenditures for 2015 is approximately $26 million to $30 million, assuming a two per cent tax increase aligned with forecasted inflation.
• Without finding ways to cut spending or increase non-property tax revenues, this would mean a six to seven per cent tax increase. That’s right, six to seven per cent.
• What’s largely driving the spending is “above-inflation” wage and benefit increases for firefighters and police officers, which will amount to $18 million for 2,580 employees in 2015. Apparently, this is something other municipalities are facing, too.
Let’s take a look at those wage increases…
In 2014, the Vancouver Police Union and the Vancouver Police Department received an arbitrated settlement that established collective agreement terms for 2013-2015. That includes benefits such as pension.
The settlement set wage increases of 2.5 per cent, two per cent and 2.5 per cent over the three year-term. The city pointed out the increases were higher than those for CUPE at 1.75 per cent, 1.75 per cent and two per cent.
The city and the Vancouver Firefighters’ Union recently received an arbitrated settlement to cover the period from 2012 to 2015. The wage increases were 2.5 per cent over the four-year term and an additional 0.5 per cent increase in 2014. Oh, and firefighters with 10 years on the job also got an additional one per cent hike because of a negotiated grievance settlement.
But it’s not just firefighters and cops getting raises.
According to the city’s 2015 Budget Outlook document, $14 million will be spent on increases to wages and benefits for 4,010 regular full-time city employees. So when you total that up with what firefighters and cops will receive, that’s $32 million of what the city describes as the “expense pressures” of $55 million to $57 million in 2015.
In other good news for taxpayers:
“The city’s contracts with CUPE and other unions will expire at the end of 2015, adding uncertainty to the four-year financial outlook,” according to the city’s budget document.
Ah, the price of living in a great city, right?
You can take a survey on the city’s website to tell the mayor what you think is great or not so great about this city and where your money should be spent. The city says a report with recommendations on how it plans to balance the budget will be released in mid-February. Council won’t finalize the budget until March.
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