Campbell River homeowners might be looking at another large increase in property taxes in 2024.
“So, it is anticipated that there will be an approximate 9 per cent tax increase in 2024 if everything was to remain status quo,” said Alaina Maher, the city’s chief financial officer.
She was updating city council today (Tuesday) on short and long term plans to bring that number down – known as closing the gap – to council’s preferred target of 3.5 per cent.
Options include reviewing the fees it charges for services as well as levels of service. Those service levels and city fees are already under review and the city has already moved to cap community grants.
A report to city council shows city revenues are expected to grow at a much slower rate over the next decade while the money going out is expected to increase, exacerbated by market conditions including inflation.
The “projected gap” of nearly 9 per cent in 2024 equates to about $3.6 million.
Coun. Ron Kerr says there are “real challenges ahead” to keep tax increases reasonable.
“As council we are going to have to make some really hard decisions and it’s going to be really important for the whole community to share the load,” Kerr said.
City council will review department budgets next month while decisions on the tax increase and levels of service will come in November.
The tax increase in 2023 was 9.97 per cent or an extra $189 per household.
Nearly half of the city’s revenue comes from municipal taxes.