Vancouver’s budget, explained

Good morning, 

Nate with you today. We’ve got a big issue for you today so I’ll keep it brief. How about a joke?

What’s the difference between a well-outfitted man on a unicycle and a badly-dressed guy on a bicycle? 

Attire. 

That one’s for you Dad! 

Enough of my bad jokes, let’s get today’s stories!

— Nate Lewis, Vancity Lookout

As always, you can send your tips, leads, and story ideas to Nate at [email protected].

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WEATHER

Friday: 19 🌡️ 13 | 🌤️

Saturday: 20 🌡️ 14 | 🌤️

Sunday: 17 🌡️ 13 | 🌧️

Monday: 17 🌡️ 12 | 🌤️

CITY HALL

Vancouver’s budget, explained

It’s fall, and that means it’s budget season at City Hall. Over the next three months, city staff will complete a draft of Vancouver’s annual budget, which city councillors will then discuss and finalize in December. 

Budgets can be complicated (even for dedicated observers like us), so we wanted to break it down to help our readers understand how it works in Vancouver.  

How is the city’s budget created?

The budget process directly impacts residents and business owners like you – it sets the city’s portion of property tax rates and lays out plans for what services and programs will be funded in the upcoming year. Because of that, it’s probably the single most important set of decisions the city makes each year.

The process starts in June with a budget outlook, which “provides Council with an overview of key factors impacting the development of the upcoming budget and the measures staff are taking to balance the budget and improve service delivery,” the city said in response to questions from Vancity Lookout about the process. 

The outlook presentation “serves as a starting point for staff to begin the work of building the budget and is an opportunity for Council to provide direction, sometimes including specific property tax increase scenarios, to guide the development of the upcoming budget,” they added. 

How is the public involved?

The city wants the public’s feedback to shape the budget. For the past month, they’ve been surveying Vancouverites, asking for our priorities and preferences for the 2026 budget. You can still fill that out here, but make sure to do it soon — the survey closes on September 14.

What’s the timeline?

Staff will summarize all the public feedback from the survey into a report to city council in December. That’s part of the final stage of the process at the end of year, when staff will present a draft budget that incorporates council direction, as well as updated information like possible ways to improve the budget outlook through new revenue sources and efficiencies. Council then discusses, amends, and votes on the final budget that will set the city’s course for 2026.

In anticipation of this impactful but complicated yearly process, here are a few key things you’ll want to keep in mind as we head into this year’s budget.  

How much are property taxes expected to increase this year?

For the 2025 budget, Mayor Ken Sim and ABC-led council directed staff to limit property tax increases to 5.5 per cent, after approving increases of 7.5 and 10.7 per cent in their first two years in office. The final increase for 2025 eventually came in under that threshold at just below four per cent.  

Fast forward to this June, Sim, with the support of ABC councillors, directed staff to create three scenarios based on property tax increases between one and 3.5 per cent, in an effort to “make life more affordable for Vancouverites,” Sim said. 

However, according to the 2026 budget outlook, property tax rates would need to increase by six to seven per cent in order to maintain existing services and fund infrastructure upgrades. That’s a similar rate hike as what was originally projected by staff for 2025.

Increases to the city’s property tax rate are set by council based on the city’s budget needs, not on changes to property values. Property taxes are a core part of how the city pays for services, funding over half of the city’s yearly operating budget. If property taxes are cut, the tradeoff is that it would likely result in reduced services and increased fees at city facilities. 

However, the city only has some control over the property tax bill received by Vancouver home and business owners every year. The city also collects property taxes for other governments and service providers, which set their own rates. Those include taxes from the province on assessed land value and to pay for schools, from TransLink to pay for transit, and for Metro Vancouver to pay for utility fees like water and sewer. 

How have taxes changed over the years?

On average, city property taxes have increased about 5.5 per cent per year over the past ten years. Last year’s 3.9 per cent increase was the lowest since 2016 and 2017 when the Vision Vancouver-led council approved 2.3 and 3.9 per cent tax hikes. 

How do Vancouver’s property taxes compare to other jurisdictions?

Vancouver is in an interesting position for property tax rates, depending on who we compare ourselves to. On one hand, Vancouver property owners (and by extension lease holders) pay the second-highest amount in property taxes and utility fees among our regional neighbours. 

But the broader context is that B.C. cities have some of the lowest property tax rates in all of North America. While the low rate is good news for home and building owners, it’s a situation that fuels inequality, according to the Canadian Centre for Policy Alternatives. 

Does the city ever run a deficit?

The city isn’t like the provincial or federal governments, which can run ongoing deficits — legally, Vancouver and other municipalities can’t spend more money than they bring in each year. The result is a surplus, which is reinvested in projects and reserve funds. 

Sometimes, the accounting can look weird…

In 2024, the city’s revenue increased by nearly $550 million, creating an annual surplus of just over $860 million, according to Vancouver’s 2024 financial statement. 

So why is the city struggling to pay for projects like new pools and community centres? It’s a reasonable question if, like me, you're not a CPA or MBA.    

According to the city, in many cases, an annual surplus comes from revenues coming in earlier than the expenses they are meant to cover. So, for example, in 2024 the surplus came from Empty Homes tax revenue, investment income, and contributions from developers for community amenities and infrastructure upgrades. 

So while the city’s financial statement last year looks flush, much of that money is already spoken for and restricted to specific uses. 

In 2023, ABC councillors voted to halt a planned increase to the Empty Homes Tax from three to five per cent. COPE councillor Sean Orr plans to bring a motion to council next week that would reverse those changes and undo an ABC exemption to the tax for homes that have been built but are yet to be sold, according to the Vancouver Sun.

How big of an issue is Vancouver’s aging infrastructure? 

The city has a problem with aging, outdated infrastructure. That’s reflected in its $500 million annual infrastructure deficit – that is, the amount of money that’s required to continue renewing aging infrastructure. 

It was a point of concern for about three-quarters of residents surveyed in 2022. However, the same survey found a majority of people opposed increases to property taxes or utility fees to help cover the costs. 

A scathing audit of the city and park board’s management of recreation facilities, released yesterday, found that facilities have not been managed effectively, leading to higher maintenance and repair costs and shortened lifecycles for the city’s community centres, pools, and ice rinks.   

City data from 2022 found that 76 per cent of the city’s recreation facilities are in poor or very poor condition, and require $33 million more per year to be properly maintained and replaced. 

Stay tuned for our continuing coverage of the city’s 2026 budget, including a closer look at one of the biggest line items – labour. 

Have any questions or comments on this story? Share your comment in our Community Corner and it could appear in the next newsletter.

THE VANCOUVER NUMBER

42,500

That’s how many people are estimated to be moving to Metro Vancouver each year — down from last year’s projected annual forecast of 50,000. The reduction is largely due to changes in the federal immigration program. However, immigration will continue to be the main driver of new population growth across the Lower Mainland. Read more. [CBC]

THE AGENDA

🧑‍⚖️ A judge has ruled that the man charged with killing 11 people at the Lapu Lapu Day Festival is mentally fit to stand trial. Read more. [Global BC]

🌲 The Stanley Park Mobility Study is complete. The park might be getting a second bus route, and at least one Park Board member has already said they’re in favour of reinstating a major portion of the Stanley Park Drive bike lane. Read more. [Daily Hive] 

🧑‍🎓 Changes to the federal government’s immigration programs have meant fewer international students at Vancouver universities, creating funding problems for institutions that have grown used to relying on high international tuition fees for revenue. Read more. [BIV]

🍎 Residents in Olympic Village are trying to NIMBY a long-awaited elementary school. Watch the video. [Tiktok]

🗳️ Kareem Allam, fired three months into his role as Ken Sim’s chief of staff, thinks he has what it takes to be Vancouver’s next mayor. With over a year before the next municipal election, Allam spoke with the Georgia Straight about his anti-ABC stance and the legal battle between him and his previous boss. Read more. [Georgia Straight]

🏗️ Westgate Property Group has cancelled plans for Ardea, a 204-unit waterfront condo project in southeast Vancouver, because of a cooling market and high construction costs. Deposits will be refunded. Read more. [Daily Hive]

⛏️ Anglo Teck, the new mining company formed by the merger of Teck Resources and Anglo American, will be headquartered in Vancouver. Read more. [Daily Hive]

DOWNTOWN EASTSIDE

Two social service programs get six-month funding extension

What happened: Two groups that provide basic supports for community members in the city’s poorest neighbourhood can carry on, at least for now. Aboriginal Front Door Society (AFBS), a low-barrier service provider operating storage, food, and day shelter programs, and Watari Counselling and Support Services, which offers shower, laundry, and social services, have had provincial funding for their programs in the Downtown Eastside extended for another six months. 

• “It's nice to have a little breathing room,” AFBS executive director Chris Livingstone told Vancity Lookout. 

Background: Last spring, Livingstone got a six-month notice from the province that funding would be cut after September 2025. At the time, the city told Vancity Lookout they’d made “extensive efforts” to secure stable funding for “critical services” like AFDS and Watari, but the province wasn’t able to find the money. 

The details: With the six-month funding renewal, AFDS will receive about $750,000 (with a bit less than 20 per cent of that coming from the city), while Watari will get over $1.2 million, according to the provincial announcement. The city will also continue donating the space where the programs operate. 

Program funding is now set to expire after March 2026. Livingstone is concerned their access to the city-owned space, which is used by other service providers like Heart Tattoo Society, could be jeopardized. Livingstone said there have been conversations with the city, but there’s no certainty yet. 

Still on shaky ground: “It would have been nicer to have a longer term, like a full year,” Livingstone said, adding it was “a lot of work to get [the province] to reverse their decision.”

• However, the six-month extension allows AFBS to continue its services and gives them extra time to secure funding from elsewhere, Livingstone said. There are opportunities to get funding from other programs, like Lu’ma and Agriculture Canada. 

“We're pretty optimistic that we can get stuff together, but technically, we're still on shaky ground,” Livingstone said, given the temporary nature of the provincial funding.

“We'll definitely dedicate a lot of our focus to figure out where we're going to get the longer-term sustainability,” Livingstone said. He’s hopeful that support from the province and city will help open doors and connect them with other funders. 

WEEKEND EVENT GUIDE

BC Spotlight | Vancouver International Film Festival | Oct 2–12 | Discover the latest films from BC's best and brightest creators, spanning narrative and documentary produced by talent from our beautiful province | Learn more [Sponsored]

Whistler Village Beer Festival | Whistler Olympic Plaza and other locations | Sept. 9–14, Main Event Sept. 13, noon–6 pm | Celebrate craft beer with tastings, concerts, brunch, bandaoke and more | Tickets $51+

Vancouver Queer Film Festival | Venues across Vancouver and online | Sept. 11–21, various times | Celebrating 2SLGBTQIA+ stories with 100+ films, performances, and Q&As | Tickets $7+

Paradise Island Summer Series | Chain and Forge Plaza, Granville Island | The final night for the bumping pop-up under the bridge | Tickets $35

Great Outdoors Comedy Festival - Vancouver | Stanley Park, Vancouver | Sept. 12–14 | Outdoor comedy fest with major headliners like Bert Kreischer and John Mulaney | Tickets various prices

Cottstock Music & Arts Fair – A Cottage Fundraiser | 390 Industrial Ave., Vancouver | Sept. 12, 8 pm| Burner-themed music and arts night fundraiser with two stages and licensed bar | Tickets

stɑl̓əw̓ Pow Wow | Langley Events Centre – 7888 200th St., Langley | Sept. 12–14, various times | Three-day celebration of pow wow culture with dancing, drumming, food, and vendors | Tickets $10+

Bike the Night Vancouver | David Lam Park | Sept. 13, 6:30 pm| Music-filled night ride along the Seawall with festival fun and glowing bikes | Free (or $10 with HUB membership)

Grand Bazaar | VanDusen Botanical Garden, Vancouver | Sept. 13, 9 am–3 pm | Antique and vintage market supporting SMOC, with 40+ local vendors | $10–$15

The Canine Library | John Hendry Park – 3300 Victoria Dr. | Sept. 13, 1–3 pm | Read poetry with pups and take part in kids’ activities and workshops | Free

Scotiabank Dance Centre Open House | Scotiabank Dance Centre, 677 Davie St. | Sept. 13, noon–5 pm | Free day of dance classes, performances and showings featuring local and international artists | Free

Canine Library | John Hendry Park, 3300 Victoria Dr. | Sept. 13, 1–3 pm | Choose poetry books to read to dogs, with workshops and kids' activities | Free

Car Free Day Main Street | Main Street: 10th Ave to 30th Ave | Sept. 14, noon to 7 p.m. | Food, art, live music and pedestrian-only fun for the whole family | Free

North Shore Kids Fest | The Shipyards, 125 Victory Ship Way, North Vancouver | Sept. 14, 12–6 pm | Free family festival with crafts, performances, and a kid-run entrepreneurs market | Free

End of Summer Mount Pleasant Block Party | 300 Block E 11th Ave, Vancouver | Sept. 20, 12–5 pm | Final block party of the summer with food, drinks, music and vendors | Free

Vancouver Audio Festival | HiFi Centre, 23 West Pender Street, Vancouver | Sept. 20, 10 am–5 pm | Hear exclusive product demos and music in high-end listening rooms | Free

Bits + Bobs Samples and Seconds SALE | Heritage Hall, Vancouver | Sept. 20, 10 am–3 pm | Discount art, craft supplies and studio samples from local makers | Free

Japan Market Fall Festival | Robson Square Ice Rink, Vancouver | Sept. 28, 11 am–6 pm | 60+ vendors offering Japanese crafts, food, workshops and performances | Tickets $4

Vancouver Latin American Film Festival | Various venues | Sept. 4–14 | Celebrates Latin American, Indigenous and Latin-Canadian filmmaking | Tickets $13+

Splash – Free Preview Exhibition | Pendulum Gallery – 885 W. Georgia St. | Now–Oct. 2 | See 90+ donated works by Canadian and international artists in this public art preview | Free

Want to see your event here? Submit them to our event calendar. 

Last chance: Should we cover FIFA’s impact on Vancouver?

Will FIFA be a transformative event like the Vancouver Olympics? Or will it leave locals frustrated and saddled with extra costs?

These are the types of questions that local media are positioned to pursue. As FIFA gets closer, we want to hear from you about whether this is a topic you want us to cover more.

Take our short one-minute survey to help decide if Vancity Lookout should cover this issue in the coming months.

COMMUNITY HIGHLIGHTS

• Shopping for pants is a hassle, but here’s a leg up on some of the better places to do it. [Vancouver Magazine]

• Flamingo House, a 50-year old Cantonese restaurant on Marine Drive, will close at the end of the month. [Vancouver is Awesome]

• Doot doola doot doo... doot doo!… [Hollywood Theatre]

• You can get a lot of free stuff — digital newspaper subscriptions, online crafting classes, music, movies, and books — with a library card. [Daily Hive]

Want to have your announcement featured? Learn how here.

PHOTO OF THE DAY

Quite possibly the most magical swimming hole I’ve ever experienced ✨

VANCOUVER GUESSER

Last week’s Guesser was geared toward our City Hall heads – political junkies and 12th and Cambie neighbours alike. Major Matthews – the park that would have been (might still be) fully shadowed by a development next door – was the correct answer. 

For this week, can you tell me which bike route had its bollard bowled over recently?