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‘I would resign’: Former Langford mayor criticizes proposed 11.94% tax hike

Current mayor says the budget covers city’s needs
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Langford Mayor Scott Goodmanson (left) and former Langford mayor Stew Young have differing views on this year’s budget. (Black Press Media File)

Langford’s former mayor castigated the new city council for proposing an 11.94 per cent tax hike in its draft 2023 to 2027 financial plan, but the city’s current mayor is defending its approach.

Speaking with Black Press Media, Stew Young said the new budget proposal shifts the burden from development companies to taxpayers, saddling them with the bill.

“I would lose sleep if I had to raise taxes 12 per cent – I would resign,” Young said.

Young’s comments were in reference to the frequent use during his time as mayor of the general amenity reserve fund to help lower taxes.

The fund comes from money collected from developers, which is charged to them as a condition of rezoning. Those fees varied depending on the type of zoning and were often charged per unit in the case of residential developments. For example, buildings rezoned to the CC2 city centre zone had to pay $3,800 into the general amenity reserve fund per unit.

Previous mayor and council had strived to keep taxes lower – partially through the use of surplus and reserves and higher-than-expected revenues. Prior to the 2022 budget, city staff had initially pitched a five per cent increase, which was worked down to 2.95 per cent. In 2021, 3.95 per cent became 2.95 per cent and in 2020, 3.49 per cent became 1.9 per cent.

LAST YEAR’S INCREASE: Langford proposes modest 2.95-per-cent tax increase; larger increases down the road

To get to the 11.94 per cent hike in this year’s draft financial plan, $1.7 million from the general amenity reserve was used.

But Michael Dillabaugh, director of the finance department, said continuing to do that wouldn’t be sustainable during the March 27 committee of the whole meeting when the draft financial plan was presented.

“We have grown to the point where it’s not really sustainable anymore, growing it at least,” Dillabaugh said. “If anything, we should be working towards getting off of our reliance on the general amenity fund … to pay for ongoing operations.”

Dillabaugh pointed to the higher amounts taken from the amenity reserve during the pandemic years as evidence of that, adding that tax levels should be brought up to pay for operation costs.

Michael Dillabaugh, director of the finance department for the City of Langford said continuing to rely on the general amenity reserve fund, whcih had been used to lower tax increases in the past, wasn't sustainable moving forward. (Screenshot/City of Langford)

“Hindsight being 2020, the reality is that while certainly with the information we had at the time I think we certainly made the absolute best decisions we could at the time,” Dillabaugh said. “The pandemic didn’t have the impact to the city’s operations and the ongoing operations of the municipality from a financial perspective that we early on thought that it may have.”

Mayor Scott Goodmanson says taxes were kept artificially low by using reserves in previous years – something Young disputes, pointing to his record over 30 years of low taxes.

The tax increase may still change. Funding for the purchase of the YMCA-YWCA Westhills facility, the design phase of the new RCMP detachment, and ongoing capital asset management are also up for consideration. Those items, if approved, could add a further one per cent to this year’s bill and 3.5 per cent over the next four years.

Young also questioned plans to hire 6.5 new city staff while development has slowed.

Goodmanson defended the money, saying city staff asked for hires in “critical” positions.

“It’s not just about development, it’s about public services,” Goodmanson said. “We’re adding … people every year. Those new residents, there are services that they need, and it’s not just planning for new development.”

He added while the city is early in its budget deliberations process, with several public meetings between now and a vote, he says the budget mainly covers necessities.

“I wish there were grandiose dreams that council had wished and then we can cut down, but this is a pretty nuts and bolts budget.”

Taxes would go up by more than $240 for the average residential property with the draft’s proposed increase, according to City of Langford estimates.

The five-year financial plan for 2022 to 2026 – passed by Young and the previous council – also forecasted higher tax hikes down the road: 5.84 per cent for 2023, 5.80 in 2024, 7.91 in 2025 and 6.07 per cent in 2026.

That’s compared with the updated forecasted figures from this financial plan: 7.75 per cent in 2024, 6.24 per cent in 2025, 5.86 per cent in 2026 and 5.42 per cent in 2027.

READ MORE: Langford draft budget includes 11.94% tax hike, but could change


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bailey.moreton@goldstreamgazette.com

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