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Tax hikes strains taking a big toll

Compounded amount over the last decade staggering
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North Cowichan Councillor Tek Manhas is absolutely right. A tax increase being proposed at this stage for residents of 9.26 per cent in 2023 is not affordable.

The final figure will inevitably be lower, but even if it’s five per cent or three per cent, it’s still going to be too much.

We all know there are numerous factors contributing to the proposed high tax rate in the next few years and the municipality has definitely painted itself into a corner.

One of the issues is the price tag for the new RCMP building. It’s clearly a project that should have been down-scaled before getting the go-ahead. A new RCMP building is definitely needed, but not of this magnitude so we’re going to be paying the price of the extravagance for a while.

The argument will be people had a chance to turn the project down through the Alternative Approval Process, but that’s another story about whether it’s a justified procedure for giving the electorate a proper say.

The reduction of the tax rate to an artificially low 2.89 per cent for 2022 hasn’t done anyone any favours. It only means keeping next year’s from reaching the stratosphere is much more difficult.

The reinstatement of budget items eliminated to lower the tax increase are pending again as well as debt servicing for a new Crofton Fire Hall. And then there’s negotiated staff wage increases … the list goes on.

The problem for taxpayers is not just last year’s rate or the year before; it’s the compounded amount of the constant increases over the last decade that’s causing huge financial implications. Small businesses already hurting from COVID can’t afford to shell out higher tax payments and neither can most residents who’ve seen their budgets hit in so many other ways.

Talk of a reduction in municipal services is finally being realistically mentioned to alleviate the tax crunch. Going forward, that has to happen in order to eventually eradicate annual tax increases and bring it close to zero once current commitments are off the books.

Home and business owners can’t be expected to continue footing these bills to such a degree. It will be up to the next council that takes over in October to get serious about bringing costs in line.



Don Bodger

About the Author: Don Bodger

I've been a part of the newspaper industry since 1980 when I began on a part-time basis covering sports for the Ladysmith-Chemainus Chronicle.
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