Burnaby City Council approves 2023 property tax increase of 3.99%

Burnaby City Hall (City of Burnaby)

Burnaby residents and businesses will face one of the lowest property tax increases amongst Metro Vancouver municipalities in 2023.

Burnaby City Council has approved a relatively modest 3.99% municipal property tax increase, which is equivalent to a $74 increase to about a total tax levy of $1,931 for an average residential home valued at $1.32 million.

The City states the 3.99% increase is sufficient to help cover global economic and cost inflation challenges, as well as additional funding requirements for its RCMP contract and E-comm 911 services, and provisions for collective agreement wage increases for Fire Rescue and CUPE staff.

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The increase of 3.99% is below the inflation that was experienced last year, but the municipal government states it is made possible by using the City’s reserves to help reduce the impact to taxpayers in 2023.

Additionally, City Council also approved a small increase of 2% to the fees paid to use sewer and water services provided by Metro Vancouver Regional District. The City tapped into its reserves to lower the rate increases to residents for these regional services. If the reserves were not used, taxpayers in Burnaby would have fully covered the regional district’s 7.6% increase for sewer services and 2.8% for water services.

With the 3.99% increase, the City’s 2023 operating budget will increase to $646.5 million, while the 2023 capital plan budget for new and improved facilities and infrastructure will reach $291.4 million.

But the reprieve amidst a high inflationary environment and growing cost pressures is just for 2023.

Burnaby’s property tax increase starting in 2024 could be almost as high as some of its regional municipal counterparts. City staff are forecasting the need of a 7% property tax increase per year between 2024 and 2027 to account for the increased operating costs for new and expanded facilities, such as Burnaby Lake Aquatic Centre and Arena, Brentwood Community Centre, and other major projects and initiatives.

It should be noted that Burnaby City Council only has control of the municipal portion of the property tax. Other portions of the property tax are decided and levied by other regional and provincial authorities — TransLink, Metro Vancouver Regional District, BC Assessment, and the BC Municipal Finance Authority. They are looking to increase their portion of the property tax by between 5% and 15% in 2023.

Meanwhile in the neighbouring City of Vancouver, a 10.7% property tax increase has been approved due to the need to improve basic services and maintenance standards, a strategy to hire more police officers for public safety reasons, and the lack of reserves.

The City of Surrey is in the midst of contemplating a 17.5% property tax increase, with a significant portion coming from City Council’s strategy to cancel the Surrey Police Services and retain the Surrey RCMP. City Council is considering the possibility of using new provincial funding intended for infrastructure to help lower the police-related portion of the property tax increase.

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