The City of Vancouver’s 2012 operating budget, which raises property taxes 2.84%, is drawing censure from opposition councillors and a group of Vancouver business owners.
“We think this is not the time for any increase in property taxes,” said Ed des Roches, past co-chairman of the Vancouver Fair Tax Coalition (VFTC), a group of Vancouver business owners and business- improvement associations.
Last year, Vancouver council passed a 2.2% property tax increase for its 2011 operating budget.
This year, a city staff report during the budget process noted that 80% of Vancouver residents indicated they would accept a property tax increase of up to 3% while only 65% of businesses felt the same.
The VFTC has been lobbying the city for a zero increase this year.
“The economy is still struggling, trying to get back on its feet, [and] the median income for families has stagnated,” des Roches said. “We think it’s imprudent to increase property taxes.”
Non-Partisan Association councillors George Affleck and Elizabeth Ball have both criticized the recently passed budget, arguing that it didn’t provide enough detail to show what impact it will have.
Vision Vancouver Coun. Raymond Louie said the budget will serve Vancouver’s business owners. He noted that it adheres to council’s final committed year of shifting the city’s tax burden away from business – a point the VFTC commends.
Louis added that just maintaining last year’s city operations would have resulted in a $52 million shortfall – or a tax increase of about 9%. He said the city was able to close that gap by raising utility fee revenue by 7.9%, by finding “efficiencies” and by opting against replacing 89 staff vacancies.•
Louis also touted a new $2 million innovation fund aimed at leveraging money from other layers of government and funding organizations, which he said could be used for economic development and other projects
