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Vancouver’s increasing property tax increase
Property taxes set to be bigger and what the new B.C. budget means for Vancouver
Good morning,
So… How’s everyone doing? Is anyone affected by the snow? Thankfully rain is in the forecast for later this week. (I know, weird to be thankful for rain).
Today we’ve got a new property tax number which is heading the opposite of lower, what the B.C. budget means for Vancouver and a breakdown of dream homes in Yaletown.
Let’s get to it.
— Geoff Sharpe
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WEATHER
Wednesday: 5 🌡️ 2 | 🌧/❄️
Tuesday: 7 🌡️ 1 | 🌧
Wednesday: 6 🌡️ 2 | 🌧
VANCOUVER NUMBERS
⛴️ $500 million: How much the B.C. government is investing in BC Ferries to prevent a 10.4 percent annual increase in fares over four years. [Global]
🗳️ $14 million: How much was spent on Metro Vancouver elections. In Vancouver, the total was $5.69 million. Mayor Kennedy Stewart spent $1.1 million and Ken Sim spent $900,000. [Vancouver Sun]
🔫 1,400: The number of firearms, tasers and yes, brass knuckles, that were seized at YVR by the CBSA that were destined for an address in Chilliwack in January. They were imported from China using fake information. [CTV]
🏠 11-17 years: That’s how long it will take the average British Columbian to save for the upfront cost of homeownership. The cost for the first year of home ownership including down payment in Vancouver was $331,368. [Business in Vancouver]
CITY HALL
Did we say 9.7 percent? We actually meant 10.7
Vancouver Board of Trade/Twitter
Remember that newsletter story we wrote about the 9.7 percent property tax hike? Well, turns out it actually may be 10.7 percent.
What happened: Mayor Ken Sim revealed the property tax hike announced last week in the proposed city budget would likely be 10.7 percent to account for the following planned funding, according to CTV. The increased tax rate would cover:
$1.8 million for snow readiness;
$1.3 million for road maintenance and pothole repair;
$800,000 for Vancouver Public Library;
And $4.9 million for Vancouver Fire Rescue.
In the interview, the mayor explained how part of the problem stems from depleted cash reserves for the $500 million infrastructure deficit. Sim also outlined how ignoring problems like sewer investments may mean Vancouverites will not be able to flush their toilet in 20 years. Gross.
Dig deeper: Read our breakdown of the city budget here.
Yes, but: If you think property tax increases are too much, imagine being a renter. Journalist Robert Jago broke down the potential cost of the property tax increase versus the legally allowed two percent rent increase. An average property tax increase will cost $24.67 per month versus a rent increase of $54.60 per month.
Re: property tax increase in Vancouver. Avg 1 bedroom rent is $2730. The max rent increase is 2%. That equals $54.60 per month. The median home is $1,997,000. The property tax increase equals $296 per year or $24.67 per month - less than half the rent increase. #Whiners
— Robert Jago (@rjjago)
9:02 PM • Feb 28, 2023
The takeaway: Sim’s promise of positive vibes are running up against the reality of the city’s budget. Part of his campaign platform was predicated on keeping taxes low, but also investing in such things as hiring 100 more cops. As CBC reporter Justin McElroy points out, Sim didn’t explicitly rule out property tax increases during his campaign. As of right now, the budget is just a proposal and it remains to be seen if the final budget will include this total proposed increase.
The final vote on the budget is expected on March 7.
Deep dive: Journalist Jen St. Denis from The Tyee has an excellent breakdown of the new budget changes and why Sim is proposing this expanded spending.
I'm at Vancouver city council today for the operating budget. #vanpoli Mayor Ken Sim's ABC party is proposing a rather large 10.7% property tax increase - here's why 🧵 👇
— Jen St. Denis https://journa.host/@jenstden (@JenStDen)
6:17 PM • Feb 28, 2023
QUOTE
“It sucks. And the reality is the whole region is facing the same challenges. We have challenges that are unique to Vancouver.… These are the hard choices we have to make.” Mayor Ken Sim on the need for a 10.7 percent property tax hike. [CTV]
PROVINCE
Drop it like it’s hot: Big B.C. budget spending billions
What happened: Premier David Eby dropped his first budget yesterday, with a plan to run a $4.2 billion deficit to shore up social supports and invest in new programs, according to CBC. Deficits are expected to continue for the next three years.
The decision to invest billions is a stark difference from his predecessor John Horgan. The former premier had a budget surplus of $1.3 billion in 2021/22 and a forecast of $3.6 billion in 2022/23.
Some of the big-ticket items include increasing the amount of money in people’s pockets, with a renters tax credit worth $400 for individuals making under $60,000 per year, increasing the B.C. Family Benefit and increasing the Climate Action Tax Credit to $447 per year.
There’s also $37.5 billion set aside for the next three years for new capital spending on hospitals, schools and other projects.
Thought bubble: It’s a similar position as Mayor Sim, where the city has had to dig into reserve funding to pay for an infrastructure deficit.
Dig deeper: Read the entire budget here.
For Vancouver: Much of the key program spending is on programs that directly affect the city, including
$586 million for substance abuse for treatment and recovery beds;
An increase in infrastructure spending for projects like the new St. Paul’s Hospital, currently budgeted at $2.2 billion;
$575 million over three years for students housing spaces;
$394 million to buy new lands near future transit developments;
As much as $640 million over three years for more supportive housing
What it means: After years of complaints from certain sectors about the need to spend the budget surplus, the new government under Premier Eby is doing a 180 on his predecessor’s approach. It could be viewed as a tacit acknowledgement that not enough was done during the previous premier’s tenure. Policies like the expansion of targeted tax credits and direct funding to individuals is as clear a sign that the government believes the cost of living is an issue that must be dealt with.
DREAM HOME
YOLO Yaletown
Every week, we feature homes from different Vancouver neighbourhoods. This week we’re featuring Yaletown.
Vancouver-affordable
Alass, the dream of affordable Yaletown living wasn’t meant to be. There are no apartments for under $500,000. Hopefully other neighbhourhoods have more to offer.
Not affordable
Realtor.ca
Heritage living in Yaletown? Yes, it’s possible. This beautiful two-bedroom apartment built in 1911 on Hamilton Street has brick walls, a gas fireplace and floor-to-ceiling windows. Is it expensive? Probably. Will it fill the gaping hole in your heart after you fork over this much? Maybe!
The “only in your dreams” home
Realtor.ca
A 4,200 square foot apartment? Check. Five-hundred square foot deck? Check. Wet bar, rec room and a living plant wall? Absolutely. This penthouse suite has everything you need to live the Yaletown lifestyle. Check out this pricey unit today.
THE AGENDA
🚨 A man out walking a dog was shot with rubber bullets after he was mistakenly identified as a man wanted for a home invasion. After explaining he wasn’t the man in question, he was shot twice in the stomach and arrested. The man is calling on the police officers to be suspended and charged. The incident is being reviewed by the Office of the Police Complaint Commissioner. [CTV]
⚠️ A popular playground at Kits Beach Park was vandalized over the weekend, with swings cut by bolt cutters. Police are investigating the incident. [CTV]
🏒 It’s busy season at Canucks headquarters, with the trade deadline this Friday. The Pittsburgh Penguins have shown interest in T.J. Miller, who was a breakout star last year. The team also acquired Josh Bloom from the Buffalo Sabers for Riley Stillman. Bloom currently plays in the OHL and has 19 goals and 23 assists. [TSN]
🚓 A man who allegedly assaulted a 93-year-old in Chinatown near main and Pender in October has been arrested. He’s been charged with one count of assault causing bodily harm. [CTV]
🗳️ Some community leaders are raising concerns about the new electoral boundaries and their impact on South Asian voters. The Punjabi Market would move to Vancouver Arbutus while the Khalsa Diwan Society Gurdwara Sikh temple would remain in Vancouver South. [CBC]
🔥 One person was injured and 10 others were forced to leave their home after a fire was reported Tuesday morning at the 3600 block of SW Marine Drive. [Global]
WEATHER
A snowy roundup
City of Vancouver
Some say snow is beautiful. If you’re a Vancouver driver, student or transit user, you may disagree. Here’s a quick summary of everything you need to know about weather-related news.
Park shut down: If you wanted to enjoy a beautiful snow-filled day in Stanley Park, you were out of luck Tuesday. The storm shut down the entire park due to ice conditions. Usually parts of the Seawall shutdown, not the entire park. [CTV]
Commuting disaster: If you commuted into town this week you know how bad it is. Cars were backed up on all major bridges, buses were delayed and SkyTrains were slowed down as snow and ice had to be removed. [CBC]
Flying and boating: 50 flights were cancelled at YVR and many were delayed. Staffing issues also prevented some ferries from sailing between Tswassen and the Southern Gulf Islands. [CTV]
Don’t go up the mountain: SFU alerted students at 10 am yesterday that their Burnaby Mountain campus would be closed the rest of the day due to weather conditions. Classes remained open for UBC and BCIT. [Daily Hive]
What’s next: The weather will drop to -2 but it will feel like -6 with windchill. Snow will return Thursday, with showers on Friday and Saturday. [Vancouver Sun]
COMMUNITY HIGHLIGHTS
You might be surprised at how big a fine you could get if you don’t clear your sidewalk. [CTV]
Vancouver has opened up warming centres this week. You can find a list here. [Reddit]
You may not have enjoyed the snow but the Vancouver Aquarium sea lions definitely did. [Vancouver Is Awesome]
See Vancouver’s Indigenous heritage and natural beauty by bike in this new guide by Conde Nast. [Conde Nast]
Everyone’s favourite car-sharing service Evo is now in Burnaby. [Twitter]
100 years ago Houdini hung suspended from a straight jacket. Spoiler alert — he escaped. [CBC]
MEME OF THE WEEK
Thanks to SeaBusMemes for this great meme. Anyone who was a kid growing up in Vancouver can relate.
PHOTO OF THE DAY
What a shot of fresh snow on Mount Seymour from Reddit user Br81.
GAME TIME
Congrats to Cam who correctly guessed Vancouver got 15 cm on snow on Sunday.
In an effort to help you forget the horrible weather, today’s VancouverGuesser is a beach - can you guess which beach? Reply with the correct answer, and your name, and we’ll include it in the next newsletter.
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