Annual Municipal Property Tax Increase
|Service Level Increase (%)||1.37|
|Dedicated Tax Levies (%)||1.25||2.92||2.14|
|General Tax Increase (%)||3.86||3.99||4||3.74||3.14||3.19|
|Municipal Price Index (%)||3.25||3.15||3.23|
The target is to keep annual municipal property tax increases less than the annual inflation rate for City costs (MPI) and measures success in controlling costs. Setting a target for a maximum municipal property tax increase provides specific direction to City Council and the Administration during budget preparation and deliberations.
MPI is calculated annually based on the inflation rate for municipal costs, such as labour and fuel.
How are other cities doing?
Other Western Canadian cities had 2014 municipal property tax increases ranging from 2.95% to 7.29%.
What do we need to do to achieve this target?
The City is undertaking continuous improvement reviews to identify and implement efficiencies and cost savings without reducing the level of service for citizens.
What are the benefits of achieving the target?
A target based on inflation ensures annual property tax increases remain affordable to citizens.
What are the risks?
The City will need to fund growth-related expenses which occur prior to receiving related revenue. Limiting property tax increases to inflation means that the City will need to diversify its revenue streams.
Increases in service levels or fully funded, approved service levels for core civic services may require a tax increase in excess of the MPI.