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By Mike Vanden Bosch

Municipal tax increase

Chilliwack councillor slams province for downloading costs onto City amid 7.1% property tax increase

Dec 4, 2024 | 11:30 AM

CHILLIWACK — Chilliwack Councillor Chris Kloot said the provincial and federal governments bear much of the blame for a 7.1 per cent property tax increase Chilliwack taxpayers will face next year.

Kloot made the comments during an agenda item at Tuesday’s council meeting in which councillors gave third and final reading to the 2025 Financial Plan that calls for a 7.17 per cent tax increase to fund additional RCMP officers, firefighters, RCMP support staff and bylaw enforcement staff.

The City of Chilliwack spends approximately $14,000 a day for cleanup and security across the city, Kloot said, in part because the province refuses to prioritize treatment for those struggling with substance use.

“The pressures, the demands of the second-fastest growing city in Canada are real,” said Kloot, who was first elected to council in 2014. “The housing targets imposed by the provincial government upon municipalities are not helping. The caseload per RCMP member remains high, much higher than neighbouring municipalities. So, the frustration for me is the failed policies by senior levels of government by not prioritizing treatment… in a more robust way for the vulnerable citizens of our community who live rough. And it’s directly costing the taxpayer of our community everyday, $14,000, and that’s a conservative number through things like the cleanup and security that take place throughout our community.”

Kloot said the City of Chilliwack has stepped up by waiving $2.7 million in development cost charges for four housing developments, money that could have been used for municipal infrastructure projects.

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“No one is excited about that persistent and challenging inflationary environment that we are in. No one is excited about the constant downloading by the federal and provincial government to local governments,” Kloot said. “For me, it’s not lost that once again we are coming forward with another substantial tax increase for the taxpayers in our community. I’m uncomfortable with it. Time and again, the City steps forward making meaningful steps to assist the provincial government in helping to secure housing for those in need, and I think in the last three years, there’s been a forgiving of $2.7 million in development cost charge waivers on 4 housing projects. Two are complete, one is under construction and one has yet to begin construction. And yet, it’s not nearly enough housing or supports.”

According to a staff report authored by Glen Savard, a chartered public accountant and director of finance for the City of Chilliwack, one of the biggest drivers behind the proposed 7.17 per cent tax increase is the city’s contract with the RCMP, which accounts for nearly half (3.44 per cent) of the projected increase.

Savard wrote in his report that local governments continue to bear the brunt of rising costs for the delivery of many core services, and Chilliwack is no different in that regard.

“While inflationary pressures are encountered in various areas of the municipality’s operational and capital budgets each year, the continued economic landscape of inflation and rising costs for the delivery of municipal services and capital construction has had a substantial influence in shaping the City’s 2025 financial plan,” Savard said.

As an example, Savard said the cost escalation to the contract with the RCMP has had the single largest impact on the financial plan, requiring a 3.44% tax increase solely to fund this contracted service, absent any additional RCMP members.

“This is the reality confronted by all municipalities in the delivery of policing services across the province and the country, whether it be RCMP, provincial or municipal police forces,” Savard said.