Infrastructure deficit of Victoria unknown
While residents now have a new bridge ($105 million plus), and are planning for a new Crystal Pool ($69.4 million), plus fire hall and emergency centre ($35.9 million), tax revenue is needed to upgrade other aging City of Victoria infrastructure.
City staff are now developing asset master plans and condition assessments to determine how much capital investment is actually needed – it will likely be hundreds of millions of dollars.“The infrastructure deficit is the difference between what you need to spend to do upgrades and the funding you will have available in the years you need to do those upgrades,” says Susanne Thompson, director of finance.
“The capital budget funding levels have reached sustainable levels for some assets (water), some are close to sustainable levels (storm drains), some projects are shaped through consultation with the community (park upgrades), some require additional analysis to determine the required funding levels (sewer, equipment and surface infrastructure such as street and traffic lights), and some fall short of recommended levels (facilities, roads and fleet),” says Thompson.
Even though the City doesn’t have the exact number, it knows it has an infrastructure deficit and has already started increasing funding levels for infrastructure renewal. For example, for 2017 the planned spending and saving in reserves from property taxes and user fees was about $44 million combined with utilities which follow a pay-as-you-go approach.
“Never before now has careful stewardship of our assets and tax revenue been more important – until all these infrastructure costs are known and addressed, any financial decisions need to be conservative,” says Stephen Ison, board member with Grumpy Taxpayer$.
Nationally, the Canadian Infrastructure Report (2016) puts the dollar replacement value of assets in poor and very poor condition at $10,000 a household (Page 12). In Victoria there are 49,212 private households according to the 2016 census.
That provides a rough estimate of almost $500 million for its infrastructure deficit, although it may be more since Victoria is considered an older city. The report included costs for potable water, wastewater, stormwater, roads, bridges, buildings, sport and rec facilities and transit.
City of Victoria was one of the few major jurisdictions not to participate in the Canadian Infrastructure Report.
Any cost overruns in the sewer treatment project will be the responsibility of core communities including Victoria and Saanich.
RELATED:
Canadian Infrastructure Report Card (2016)
Grumpy Taxpayer$ is a non-profit, unaffiliated, non-partisan, citizen’s advocacy group dedicated to lower taxes, less waste, and more accountable municipal government.
]]>Referendum process
Referenda are conducted under the Referendum Act or legislation established for the administration of a specific referendum. The procedures and rules for each referendum may be different and are determined by government regulation.
Referendum results are usually binding on government. If more than 50% of the validly cast ballots vote the same way on a question stated, that result is binding on the government that initiated the referendum.
In Victoria’s motion they quote “elector assent”. I searched that on Elections BC. It’s true, I guess an incoming Council could decide NOT to go with the referendum results … dicey. No matter how you want to interpret this the taxpayers will pay both for some sort of “awareness” campaign what the question means to their pocketbook in the future.
]]>Council may seek community opinion
83 (1) A council may seek community opinion on a question that the council believes affects the municipality, by voting or any other process the council considers appropriate.
(2) The results of a process under this section are not binding on the council.
]]>“The differences between Saanich and Victoria tax rates are very small”
Stan, I think you are saying dollar-wise differences are small, but that residents are purchasing different services with those dollars.
This is huge. (When you go to the store or shop online, don’t you like to get what you purchased? )
Alex Badiuk of Saanich is dead set against any talk of amalgamating Victoria and Saanich arguing in the Times Colonist, “….Victoria’s property taxes are higher than Saanich’s.”
To settle the issue, Grumpy Taxpayer$ looked at Ministry of Municipal Affairs and Housing figures for 2017, as rates for 2018 are not finalized. The figures includes rates for various categories but we’ll focus on residences, business, and the differential between the two.
Residential tax rate for Saanich for the municipality is 3.3249, compared to 3.6649 in Victoria. Plus, if you include the regional district, hospital, school and other taxes, the Saanich total is 5.4624 compared to 5.8006 in Victoria.
Business tax rate is a different story. The business tax rate is 12.9357 in Saanich compared to 12.4577 in Victoria. If you include the regional district, hospital, school and other taxes, Saanich business pays 20.5423 compared to 19.9298. Saanich pays a multiple of 3.76 compared to residential owners, and Victoria business pays a multiple of 3.44.
So, taxes in both jurisdictions are pretty much the same: Saanich residential property owners pay slightly less than Victoria, but Saanich business pays slightly more than Victoria. The tax rates are multiplied against assessments to give the tax bill.
ONE STAR (OUT OF FOUR) PINOCCHIO AWARD: The differences between Saanich and Victoria tax rates are very small and overstated by the taxpayer. Residents of both jurisdictions also receive a different basket of services for their property taxes.
For 2018, subject to bylaw approvals in May, Saanich is looking at a 3.07 per cent hike for the municipal portion of taxes, and Victoria just 2.77 per cent.
]]>As noted earlier….less than 35% of eligible voters voted for Council and even less (4300 less) voted for the ballot question.
What Saanich voters voted on was not “Amalgamation”, they voted on “governance review within Saanich and shared services”. Let me be clear….Council changed the terms of reference AFTER the Governance Review Citizens Advisory Committee was underway. So, the citizens of Saanich DID NOT vote on an Amalgamation question in any way, shape or form. This seems to be lost of the Amalgamation Yes folks.
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