City of Burnaby proposes 4.5% property tax increase for 2024

City of Burnaby's TransLink bus stop. (Kenneth Chan/Daily Hive)

Residential and business property owners in Burnaby could face a moderate property tax increase in 2024.

Staff with the City of Burnaby are proposing an average 4.5% property tax increase in 2024, which represents a slight increase from the 3.99% hike in 2023.

This is equivalent to an average $87 increase for an average home assessed at about $1.3 million, with averages of a $146 increase for a single-family house assessed at $2.06 million, and $39 for a condominium assessed at $769,000. Businesses can expect an average increase of $1,386 based on the property’s worth of $6.5 million.

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The 4.5% increase will generate $18.7 million in new revenue. Additionally, the City is expecting about $4 million in new property tax revenue from the completion of new building developments.

This rate is also lower than last year’s forecasted need for an average 7% increase annually between 2024 and 2027 to account for increased operating costs.

The 2024 property tax change accounts for compensation and benefit increases for City staff based on collective agreements, inflationary impacts on programs and services, and additional funding for Burnaby RCMP, fire rescue services, E-Comm, and homeless shelters.

It is also noted that there will be zero fee changes for water supply, but a 5% increase for sanitary sewers due to Metro Vancouver Regional District costs. The 0% change for water supply fees is the result of the City tapping into its reserves for the second consecutive year to lower the financial impact on residents and businesses.

City staff note that inflation and population growth are creating an upward pressure on both the operating and capital budgets, and therefore also the property tax rate.

“Many city services and programs are impacted by significant cost escalations. In particular, sectors such as construction materials and services as well as public safety services are seeing cost increases higher than general inflation. Staff are anticipating continued supply chain issues and a difficult labour market, which will continue to put pressure on services and programs,” reads the draft 2024 budget.

“The anticipated growth and densification in Burnaby will also continue to place additional requirements on the City’s core services and programs.”

The 2024 operating budget will reach $674 million, representing an increase from $647 million in 2023. The single largest operating budget line is parks and recreation (19%), followed by general government administration (14.9%), engineering (13.3%), Burnaby RCMP (12.8%), waterworks utility (9.7%), fire rescue (9.5%), sanitary sewers (8.3%), real-estate management (4.3%), planning and development (3.9%), and Burnaby Public Library. (2.8%).

Property taxes will account for 51% of total operating revenues. This only accounts for the municipal portion of the property tax – it excludes the property taxes of Metro Vancouver Regional District, TransLink, and the provincial government.

For the 2024 capital budget of building new and replacement facilities, infrastructure, and utilities, the City is looking to spend $365 million, which accounts for a small fraction of the $2.6 billion five-year capital plan between 2024 and 2028, with major new and improved community and recreational facilities accounting for 55% of the multi-year total.

Burnaby City Council will finalize the 2024 budget in December 2023.

In contrast, the City of Vancouver is in the process of considering a 7.6% property tax hike in 2023, with its operating budget now reaching and exceeding the $2 billion mark for the very first time. Vancouver is also proposing a $1.25 billion capital budget for 2023.

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