Nanaimo OKs 4.5% tax hike, less than planned earlier

Nanaimo council has voted in favour of a 4.5 per cent property tax increase, a drop from the earlier plan of 5.2 per cent.

Councillors debated the merits of various scenarios before eventually settling on the option that will boost property taxes on an average home by $95 from 2019.

That means that the owner of a home assessed at $527,145 would pay $2,205 in property taxes, up from $2,110 last year.

Other municipal fees for water, sewer and garbage collection would increase the total to $3,111, from $2,967 last year.

The increase does not include taxes imposed by other agencies.

The 4.5 per cent rise reflects a one per cent charge going to the city’s general assessment management reserve, and 3.5 per cent for basic property taxes. Other options would have decreased the property tax levied, but come with financial implications, including increasing the projected starting point for 2021 taxes.

Coun. Zenni Maartman was among those who favoured the 4.5 per cent option, arguing it puts the city in the best position if finances are tighter next year as a result of the COVID-19 pandemic.

“It might be next year that we have to really tighten our belt,” she said.

She noted that many homeowners with mortgages will have already been paying for their property taxes monthly, meaning they are in a good position to handle the tax bill.

“Right now we are fine. We need to stay the course and be fiscally prudent.”

Coun. Erin Hemmens also backed the 4.5 per cent option, saying experts predict recovery from the pandemic could take two to five years. “It’s about keeping the 2021 increase low.”

Coun. Ian Thorpe said sticking with the 4.5 per cent figure allows the city to continue providing services that citizens want, and permits Nanaimo to go ahead with planned projects, which keeps workers on the job.

Coun. Don Bonner maintained, however, that the increase should be lower, saying it’s up to the city to set an example. Coun. Jim Turley also opposed the increase.

Council still must vote on the final bylaw to approve this year’s tax rate.