Greater Victoria property owners will face a $38 increase in their property taxes next year after Capital Regional District directors voted unanimously this week to approve an $872 million interim budget for 2025.

The budget, which includes both the operating and capital budgets of the Capital Regional District, the Capital Region Housing Corporation and the Capital Regional Hospital District, represents an additional $95 million than the combined financial plan of $777 million for 2024.

The CRD, which has faced inflationary pressures and rising costs of delivering services in a rapidly growing region, accounts for the vast majority of the budget, with an operating budget of $410.8 million and a investment budget of $283 million.

CRD President Colin Plant said the district and municipalities had no choice but to raise taxes since they could not run deficits.

“It’s very difficult to look at the numbers every year and realize that this is going to be a challenge for many residents. But we also try to find a balance to continue to provide the services that we offer. And some of our services are absolutely crucial,” he said, emphasizing the CRD’s responsibility for drinking water and wastewater treatment.

“We must continue to invest and protect our water. This is not up for debate.

The proposed operating budget for the CRD program is $42.3 million higher than last year.

Most of the total will be financed by the sale of services – water, sewer and landfill for example – to the tune of $197.5 million, an increase of $24 million.

The second largest share of the budget will be financed by requisition – money collected on behalf of the CRD by municipalities through property taxes.

The budget projects requisitions will total $96.5 million this year, up from $88.5 million last year.

Nelson Chan, CRD’s chief financial officer, said owners of a typical home in the area worth $1 million will pay about $728 in taxes, an increase of 5.5 percent from to last year, or 38 dollars more in 2025.

He emphasized that the average 5.5 percent increase is only for the CRD portion of property taxes, not the entire property tax bill.

This will also vary by municipality. The tax increase on the CRD portion ranges from 0.3 percent in the Highlands to 13.1 percent on Salt Spring Island – the amount of the tax bill depends on the CRD services used by each municipality.

Although the numbers may change before the final budget is approved in March, the interim budget projects an increase of 4.1% for landowners in Victoria, Saanich 2.5%, View Royal 5.9%, Esquimalt 3, 4%, Sooke 5.2%, Central Saanich 5.5%, Langford 7.7%, Metchosin 6%, North Saanich 6.5%, Sidney 5.3%, Oak Bay 6.5% and Juan de Fuca 10 .3%.

The budget could change in the spring depending on the numbers from the British Columbia assessment and the possible addition of just over $1 million in new spending to implement a transportation service , a regional housing assessment and a “foodland access service” to facilitate affordable access to productive agricultural land. .

The $283 million capital budget, up $16.8 million from last year, includes $149 million for drinking water infrastructure, $41 million for treatment infrastructure wastewater and $18 million for recreational and cultural projects in the region.

“We are highlighting certain strategic initiatives in this budget. It’s not just a simple fiscal status quo,” Plant said.

He said the CRD board considered making cuts to reduce the tax burden next year, but the savings would have been made by deferring costs rather than reducing program spending.

“It is always difficult to raise taxes and I recognize that it is a real challenge. But I join my colleagues in unanimously adopting this project,” he declared.

Now that the draft financial plan has been approved, it will be posted online for public comment at: crd.bc.ca. Comments received online will be shared with the Board of Directors as part of the final budget review and approval process in March 2025.

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