Homeowners in Port Coquitlam will likely see a 3.7% property tax increase when their bill arrives this year, a jump of approximately $71.25 for the owner of an average single-family home.
On Monday, PoCo council voted in favour of granting the first three readings to the 2013-2017 financial plan, a document that includes funding for the hiring of six new firefighters and two new police officers.
It also includes a 1% levy the city said will be used to address its estimated $330-million infrastructure gap.
Many municipalities are grappling with how to pay for the replacement of existing roads, sewers and facilities nearing the end of their lifespan, and PoCo has been setting money aside for the expense over the last few years.
But while there is some additional spending in this year's budget, councillors said they were keenly focused on keeping the property tax increase low.
"I am happy with where we are at," Mayor Greg Moore said. "We did focus on making some reductions."
Moore noted that more than $600,000 in efficiencies were identified by the city's committees and department heads.
Service level changes - including the elimination of pest control services on private property, reductions in funding for the city's vehicle fleet, reductions in ball diamond grooming and a decrease in staff holiday coverage - will save the city $403,000. Another $217,000 in savings is expected to come from reductions in energy use and maintenance costs.
LONG-TERM TAX PLANS CONCERN WASHINGTON
Early plans to close the Hyde Creek rec centre early on Sundays were cancelled when residents stated during the public input process that they did not want to see reductions in the facility's hours.
While the majority of councillors supported the budget, one voted against it.
Coun. Dean Washington said he has concerns about years two through five of the plan, when the city is projecting an almost 20% tax increase over a three-year period.
Councillors Michael Wright and Brad West, who both voted in favour of the budget, echoed Washington's concerns but said the city will need to find other sources of revenue if it hopes to contain its tax rate.
"There is a temptation to get involved in all kinds of things," West said. "I can understand that desire because we see the need but the danger in doing that is you see this budget creep - significant tax increases to fund services that are outside of our core responsibilities."
Moore noted, however, that long-term budget projections are not always precise and that past budgets would have showed a significantly higher rate than the 3.7% residents will see this year. He added that when council focuses on the years separately, more efficiencies and savings can be found.
"It is really up to the council of the day," Moore said. "We know that with years two, three, four and five, we don't spend as much time on as we do the current year. Those years are very vague at best."
Coun. Darrell Penner acknowledged the budget process had been an arduous task for council and equated the discussion at the committee table to being "almost like a boxing match." He said council achieved a lot with the budget, particularly in addressing the city's policing level with the addition of two new officers.
Coun. Mike Forrest said the reductions and efficiencies the city found during the budget process were important to note but added he would like council to take a closer look at the differences in taxes paid by residential and business property owners.
