Port Moody expects its tax increases the next two years will be 3.5%, with targets of 3% the following three.
A report on a five-year financial plan to the city’s finance committee Tuesday projected budget increases for 2020 and ’21 of more than $1.5 million each year. The targets, however, don’t include the possibility the city could find new revenue from growth or other sources, or, conversely, be saddled with unexpected expenses.
When asked by Acting Mayor Hunter Madsen why the city was starting at 3%, finance manager Paul Rockwood said to keep all of the current services, PoMo typically requires 1% just to cover increasing costs and 2% for labour.
“Sometimes the 2% doesn’t even cover our labour,” said Rockwood, noting the current contracts call for a 2.5% hike, although some of them are up at the end of the year.
At this point, to maintain services, Madsen said he “wouldn’t dare to venture into tinkering” with next year’s budget.
The 2020 budget details will be presented at a town hall meeting tentatively scheduled for Feb. 4, 2020.