A new report from the Business Council of British Columbia (BCBC) puts a spotlight on the alarming increase in municipal spending across B.C.
BCBC used the analogy of a runaway train to make its point about spending last year.
“Last year, we warned that municipal spending was beginning to resemble a runaway train,” said David Williams, vice-president of economics at BCBC.
BCBC says municipal operating spending increased 94 per cent between 2010 and 2024.
“This year’s report shows the train hasn’t slowed down. Instead, it’s speeding up, and British Columbians are paying the price through property tax increases that continue to outpace inflation and nearly every other province in Canada,” Williams said.
The three biggest areas that saw spending increases were in housing, development services, and sewer services.
BCBC
In dollar figures, BCBC points out that municipalities accumulated an estimated $6.5 billion in excess spending between 2010 and 2024. That amounts to $1,280 per resident.
With its report, BCBC has released some pretty staggering numbers regarding how the situation has impacted taxpayers and property owners.
BCBC says taxes on owner-occupied housing have increased 110 per cent since 2010, compared to 62 per cent nationally.
Of the 153 B.C. municipalities, 135 increased real operating spending faster than population growth.
BCBC
Operating spending in Metro Vancouver increased by 97 per cent in those 14 years, compared to 31 per cent population growth and 36 per cent inflation.
Jairo Yunis, Director of Policy at BCBC, acknowledges that population growth and inflation naturally increase the cost of delivering municipal services, but adds that there may be an efficiency problem.
“The concern is that, in most municipalities, spending has consistently grown well beyond those pressures. Unless residents are receiving significantly better services, it’s reasonable to ask whether local governments are delivering those services as efficiently as they could.”
BCBC’s report offers three recommendations:
- Governments anchor municipal operating spending growth to population and inflation.
- Re-establish provincial oversight of municipal and regional district spending
- Re-evaluate Metro Vancouver’s governance and role