At the rate the city is spending, Victoria residents can expect a larger property tax increase in 2011 than they saw this year. Unless service cuts are found somewhere, finance director Brenda Warner said a 4.7-per-cent increase is projected for 2011 to make up for a $4.7-million budget shortfall. Taxpayers absorbed an increase of 4.31 per cent this year. Warner delivered the bad-news estimates to council on Thursday. But the news gets worse: the current numbers don’t include a bunch of new expenses in the works but not yet finalized. These include the purchase of two motels (payment for which will come from the city’s reserve fund), a new police radio system, and the late-night downtown strategy. What’s more, the projected budget doesn’t leave adequate reserves to maintain recreational facilities or infrastructure – that funding gap is estimated at $500 million.
Despite these looming expenses, council unanimously directed staff to lower the tax burden. Staff are to start looking for ways to cap the increase below four per cent. “We’re going to have to make some really tough decisions,” said Coun. Sonya Chandler. In the near future, city staff will present councillors with a review of services provided by the city to pinpoint possible reductions. Council went on that same meeting to approve, in principle, new funding for public art, a late-night downtown co-ordinator and additional urinals.
Coun. Geoff Young voted against many of the new costs, acknowledging budget constraints. Chandler, however, called on staff to report on the long-term savings brought about by today’s expenses.
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