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Tax hike likely for City of North Van residents: mayor
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Mussatto says three-per-cent increase may be needed to cover growing salaries and contract costs.
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S TA F F R E P O RT E R
C
ity of North Vancouver residents can expect about a three per cent jump in their taxes this year, the majority of which is being used to fund an increase to public servant salaries, says Mayor Darrell Mussatto. On the whole, the city will see a nearly $1.9 million increase in expenditures in 2011, $945,00 of which is earmarked for its CUPE contract and $600,000 for its RCMP commitment. The remainder is split between new maintenance fees for areas such as Shipbuilders’ Square and agencies such as the recreation commission and arts office. The CUPE contract, which determines the wages for municipal staff, emergency services, public utilities staff and social services, is bargained on behalf of the region with the exception of West Vancouver, which is non-union. The RCMP contract is negotiated by the province. Municipalities that use the RCMP for policing have no access to the RCMP’s finances. Mussatto feels the policing agency has to become more accountable for its budget since cities such as North Van tend to subsidize larger areas with higher crime rates. The draft operating budget for 2011 shows the city expects to receive $56.9 million in revenue. More than 75 per cent of that comes from taxation; the rest is spread amongst a host of streams ranging from parking and bylaw enforcement to business licences. Of the tax revenue, only 10 per cent goes to capital expenses such as paving roads and repairing buildings. The rest goes to salaries. The primary ways to fund inevitable wage increases, says Mussatto, is through an increase in taxation levels, an increase in the number of people paying taxes, casinos or more parking meters. “Our community has been adamant they don’t want more parking meters. We’re hearing that loud and clear. And, we’re hearing they don’t want a casino,” says Mussatto. “There is a clear divide in the Lower Mainland between municipalities that have casinos and those that don’t. It’s a great funding source, but it’s a stigma thing. It’s seen as a tax on the poor and we’re hearing people don’t want that type of revenue.” Richmond sees about $22 million per year in revenue from the River Rock Casino; New Westminster makes about $6 million from the Starlight. Together, that represents slightly less than half of the city’s
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Parking meters and casinos may be great sources of funding, but CNV mayor says council has heard ‘loud and clear’ that the community doesn’t want either. But, that means a tax increase is the only way for the city to keep up with ballooing costs. File photo
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total revenue. Tax roll growth, on the other hand, has been a strength of North Van. The Vista towers next to city hall earn the city $300,000 per year and with more towers in Central Lonsdale on the way, the city stands to see significant jumps in population in the next few years. “Could we have kept our expenditures a bit lower? Probably. We could have not hired a maintenance person for Shipbuilders’ Square, or we could have laid off city hall staff,” Mussatto adds. “But staff are working to the max right now and that would result in a loss of service to the public. And that I’m not comfortable with.” TransLink payments are added to property values and done outside of municipal jurisdiction. All three North Shore mayors, however, have been vocal about their objections to such a scheme as property values on the North Shore tend to be some of the highest in the region, while new transit projects like the Evergreen Line don’t significantly affect area ridership. “We’re very alive to the fact that when people pay their taxes they don’t split up the costs. It’s just one big tax thing,” says Mussatto. “But the mayors on the North Shore are realizing we’re not going to see much more in terms of rapid transit so we need that room to pay staff.” Mussatto says staff will decide on a firm tax increase number within a month. The 2010 increase was 3.1 per cent. skolenko@northshoreoutlook.com twitter.com/seankolenko
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