The City of Abbotsford’s proposed property-tax increase for 2024 is almost a percentage lower than what was approved in 2023, but is still one of the highest in recent years.
The rate recommended by city staff for next year is 5.12 per cent, compared to almost six per cent for 2023.
This compares to 3.49 per cent in 2022, 2.05 in 2021, 2.12 in 2020 and 2.88 in 2019.
Council gave the first three readings on Monday (Dec. 4) to the five-year financial plan for 2024-2028, with final approval of the 2023 tax increase to be considered at a later date.
Total tax revenue from 2024 is projected to be around $186 million – about $9 million more than in 2023.
The total consolidated budget for 2024 is $357 million, compared to $341 million in 2023.
The 2024 budget breaks down to $89 million in capital projects and $268 million in operating expenses.
Komal Basatia, the city’s general manager of finance and procurement services, told council at a recent budget meeting that factors impacting the city’s financial plan include inflation, the labour market and the cost of capital projects.
RELATED: Abbotsford proposed property-tax increase highest in years at almost 6 per cent
“Given all these factors, mainly drive by inflation, particularly in the labour market, we’re still experiencing some supply chain issues, geopolitical risks and climate change on top of some of the regulation changes from senior government,” he said.
A staff report to council said most of the increases are related to labour contract obligations, property insurance increases, and construction cost inflation.
“These pressures are not unique to Abbotsford and have been observed across the region,” the report states.
Among the larger increased expenses for 2023 is $4.3 million more for the Abbotsford Police Department, which accounts for 20 per cent of the city budget. Included in the increase is $1 million more for police dispatch services.
The APD’s total budget for 2024 comes in at around $70 million.
Another $2 million is allotted for new positions with the city “to support growth” plus $700,000 in improvements in programs and services.
Wage contract increases across the city “continue to exceed historical norms,” including from CUPE, Exempt and the IAFF, the report states.
The report indicates that a review of the budget identified about $400,000 in costs that could be reduced to help offset some of the increased spending.
Major projects planned in the capital budget for 2024 include road resurfacing, new water source analysis and design, railway crossing improvements, flood mitigation projects, new traffic signals, and new or improved bike lanes and sidewalks.
RELATED: Preliminary budget sets average property tax increase at 2.9% in Abbotsford
Basatia told council that a 5.12 per cent increase will result in the average-priced single-family home – valued at $1.157 million – paying an extra $143 in property taxes in 2024.
But individual homeowners will not necessarily see their own bills rise by exactly that amount.
Since property taxes are based on a home’s assessed value, only those properties with values that rise (or fall) exactly in line with the city average will see the average tax increase.
Residents whose property values drop, compared to the city average, will see a smaller increase – or even a decrease. Meanwhile, those whose home’s value increases more than the city average will end up paying more in tax.