Newsletter March 8, 2023: Oak Bay Council's Proposed 2023 Annual Budget Tax Increase is 11.9% - Seriously?
While this may seem to be a big tax increase as Oak Bay is not transitioning to a different police force: however, the District states it’s only going to cost $400:00 more in property taxes this year for a medium residential property.
If the District’s 2023 usual tax announcement strategy holds true to form, the 11.6% proposed increase is bigger than intended finally. Most likely a slightly smaller property tax, with another .9 percentage point will follow.
This strategy is to make it appear Council is concerned about the impact on resident's current stretched to the limit) household budgets. Their expectation is that residents, after a giving sigh of relief, will be thankful Council have sharpened their pencils and now this is not the larger amount.
Note: However, as lower-taxed housing, like condominiums, results in a reduced average homeowner amount, the 2023 proposed single-family home tax increase will exceed $400.00.
With two ready-made events conveniently available, the Covid Epidemic and Inflation, these are the obvious tax increase culprits to pin the blame on. Indiscriminate and unnecessary Council spending, in these hard economic times won’t factor into this picture.
Even though a number of the District’s services were reduced during the Covid Epidemic, and the previous Council was aware that revenues were down, they maintained the administration status quo. While other municipalities were cutting back, incredibly Council continued to hire more high-salaried administrative staff and consultant support, seemingly unaware the District mainly depends on property tax revenue.
Council also pressed on with their multi-tenant secondary suite legislation and, continued promoting their Infill Initiative, knowing neither will generate any revenue for the District but will incur substantial costs.
Five members of that Council were re-elected. It’s no wonder that the new Council continues to fund and promote infill housing options supported by 2 new Councillors with the same agenda. This will help some residents financially however: the taxation and other impacts will be paid for by the rest of the Community.
The 2023-2027 Financial Plan highlights or low lights depending upon your perspective:
- This year $900,000 is budgeted for Council’s priority projects with another $650,000 in priority costs to follow in 2024/25. As well as the District has hired, or plans to hire 2.7 new planning staff at the cost of $270,000 for a total of 11.8 Building and Planning Staff (that is 10.8 more staff than in 2015.
- Council also plans to add and has budgeted for, a new $170:000 Deputy Director of Strategic Initiatives. This means Strategic Initiative positions will cost over $300,000 to write Council priority reports (prior to 2019 this was the senior administration's responsibility). The District has already spent close to, and this may exceed, $1,500,000, on the municipal hall renovation. In addition to this, the 2023 budget indicates, besides a $58,000 jump in the Corporate Administration costs, the ancillary office space to accommodate all the new staff will cost $650,000.
No explanation has been provided to support Staff’s statement, that these additional, significant staff increases and expenditures are necessary to maintain service levels. It is difficult to follow why Oak Bay Councils don’t seem to understand that Oak Bay is a very small municipality with limited tax dollars. Therefore, a very expensive ever-growing administration staff, purchasing the very latest equipment and technology, while attending to grow the population with no increased revenue, cannot be considered good financial management.
Note: The 2023-2027 Financial Plan Report is 145 pages long and it provides a lot of information that Oak Bay Watch believes residents should be aware of. We will be producing financial plan reports in future newsletters.
Oak Bay Watch Perspective (Much more Financial Information)
It seems to us that if Colwood’s 2023 property tax increase is 5.31%, North Saanich’s is 4.9% and Sidney's 5.3%, what is Oak Bay doing wrong that these other small municipalities have well in hand? North Saanich has even committed to “over the next five years, the average annual tax increase will not exceed 5%.
Didn’t these municipalities all have to deal with the effects of the Covid Epidemic? Are they all not struggling with inflation? Are their salary increases not determined by the same unions? Then why wouldn’t they have similar expenditures?
It would be rewarding to get an explanation of why Oak Bay, which has had no population increase for decades, has introduced a property tax increase that is more than twice that of these other small municipalities. (See Greater Victoria February 17, 2023 Grumpy Taxpayer Press Release, in response to Victoria Council’s 6.9% 2023 Tax increase Appendix #1)
The 2021-2025 Financial Plan, that justified a 2021 6.9 % tax increase, indicated that taxes would decrease through 2025. That Financial Plan estimated the 2023 tax increase would be 4.95%. We can understand that there could have been some adjustment on this percentage however, a tax increase well over double that amount is disappointing at best. This only makes us wonder how Council is going so far off the rails in 2023. The following information explains some primary reasons for that derailment.
Oak Bay’s past and present Council’s’ total disregard for efficiencies, their approval of almost all staff requests for administration new staff, no matter how outrageous, and with very few questions asked. The District now has Director of Strategic Initiatives, a $170,000 Deputy Director of Strategic Initiatives, as well as a Director of Planning, a Manager of Planning, a Senior Planner, a Planner, a Planning Technician and a Plan Checker. My goodness, they could run out of titles for the new 2.7 $270,000 Planning positions.
This appears to us to be a lot of staff for a community that is built out, balanced with multi-dwelling and single family areas and, has relatively very little new development. We remember that just a few years ago, adding one planning position was going to be Oak Bay’s “Planning Panacea”.
The downside of all this excessive Council expenditure is “now the norm”, year-after-year high tax increases which substantially increases the previous year’s budget, which has already been inflated by that year’s big tax hike. It is easy to see why this is unsustainable.
This is particularly relevant considering Council is adding population growth that will not provide the District with any new revenue that is necessary to provide services, new amenities and infrastructure upgrades.
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“Nothing is inevitable if you are paying attention” Oak Bay Watch
Oak Bay Watch is a volunteer community association and its members have a variety of professional backgrounds in both the public and private sector.
*******Please help us continue to provide you with information about Community concerns and Council decisions and actions. Oak Bay Watch members also help community groups with their specific development concerns. Donate to Oak Bay Watch - even $5 or $10 dollars provides expenses for door- to- door handouts and helps us maintain our website. Oak Bay Watch is committed to ensuring the Community gets the full range of information on budget, governance and all key development issues – a well-informed opinion cannot be made without this.
(Please use Secure Donate Link at top of oakbaywatch.com Home Page)
Keep informed and sign up for our newsletter – bottom of Newsletter Menu Item.
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Appendix #1
A Greater Victoria February 17, 2023 Grumpy Taxpayer Press Release, in response to Victoria Council’s 6.9% 2023 Tax increase, stated: Budget proposal another blow to affordability:
- "The current (Victoria) 6.96 percent budget ask is unaffordable for far too many city residents and businesses."
- "As other councils are discovering, there's only one chance to make a first impression that meets the seriousness of the moment - this is not it.”
While we are not sure that if this is how the Grumpies are responding to a 6.96% tax increase, how they would react to Oak Bay’s excessive, undefendable 11,6% way-over-the-top increase.
_____________________________
“Nothing is inevitable if you are paying attention” Oak Bay Watch
Oak Bay Watch is a volunteer community association and its members have a variety of professional backgrounds in both the public and private sector.
*******Please help us continue to provide you with information about Community concerns and Council decisions and actions. Oak Bay Watch members also help community groups with their specific development concerns. Donate to Oak Bay Watch - even $5 or $10 dollars provides expenses for door- to- door handouts and helps us maintain our website. Oak Bay Watch is committed to ensuring the Community gets the full range of information on budget, governance and all key development issues – a well-informed opinion cannot be made without this.
(Please use Secure Donate Link at top of oakbaywatch.com Home Page)
Keep informed and sign up for our newsletter – bottom of Newsletter Menu Item.
-----------------------------------------------
Appendix #1
A Greater Victoria February 17, 2023 Grumpy Taxpayer Press Release, in res ponse to Victoria Council’s 6.9% 2023 Tax increase, stated: Budget proposal another blow to affordability:
- "The current (Victoria) 6.96 percent budget ask is unaffordable for far too many city residents and businesses."
- "As other councils are discovering, there's only one chance to make a first impression that meets the seriousness of the moment - this is not it.”
While we are not sure that if this is how the Grumpies are responding to a 6.96% tax increase, how they would react to Oak Bay’s excessive, undefendable 11,6% way-over-the-top increase.