Newsletter March 12, 2022: What are my property taxes paying for?
As indicated in the Oak Bay Watch March 4, 2022 Newsletter, the 2022-2026 Financial Plan forecasted a 27% tax increase. This was based on an annual still high, 4.9 % property tax increase for the Plan’s 5 years. However, it must be noted, and what has been considered “creative accounting“, that this Council has “deferred” significant expenditures that the next Council and property tax payers will have to grapple with and somehow address.
The Financial Plan indicates that:
It is not clear why the municipal hall's $1,500,000 refurbishing and office space for the new administrative staff, furniture, equipment and support staffing etc., won out over the Marina and Carnarvon Park upgrades.
Is the District using residents’ property taxes being used for priorities that provide less benefit to the homeowners who provide them?
Oak Bay Watch Perspective: (More informative Financial information)
The corporate administration, according to the 2022 Financial Plan, is now costing very nearly $3,000,000 dollars (one tenth of the property tax revenue). A large portion of the $1,500, 000 municipal hall upgrade was spent on accommodating the new staff. The Financial Plan indicates we are not finished building the expensive Corporate Administration just yet. Another $150,000 administration staff increase is planned for 2023.
The rationale provided for the 2023 and previous administrative staff increases has been “to maintain service levels”. However, it is not clear to us how all of this new “corporate structure and expenditure” is maintaining the most important services a municipality provides for its residents: water supply, sewage collection and disposal, municipal roads and storm water drainage, police and fire services, municipal parks and recreation, heath services, and street lighting etc.
It is also not clear to us, that with the millions of dollars in capital expenses continually deferred and now looming, and the District administration cost increases, how a 4.9% average tax increase is realistic.
For example and as indicated, the 2019 Carnarvon Park Master Plan’s $2,576,703 upgrade was scheduled to begin in 2022 and be completed in 2025. Council has now delayed it for more three years, presumably with a 2028 completion date – that is if funding is available and all goes well.
However, with the way costs are rising; the Administration continues to expand and the impact of Council’s densification without taxation initiative, it is likely the municipal hall will be undersized again and require another refurbishing, before the Carnarvon Park Master Plan’s phased-implementation is completed.
The reason that we are not as overly optimistic as Council is that Council’s promises to the future in the past , have not played out all that well. For example, the blame for the first big 5.1% property tax increase in 2015 was explained in an Oak Bay News letter in the May 22, 2015 by one of our sitting Councillors.
She stated, “past Councils have kept taxes down by deferring costs for major infrastructure projects” and “to leave these costs for future generations would be irresponsible and unfair” (See full text Appendix #1).
There would be no complaint about the now standard, similar-to-2015, 5.1% high property tax increases if they were spent mainly for the municipal services referenced above and not on this and the past two Councils’ densification and administrative staffing priorities.
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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 Donate Button at bottom of oakbaywatch.com Home Page)
Keep informed and sign up for our newsletter – bottom of Newsletter Menu Item.
Appendix #1: Oak Bay News Letters to Editor May 22, 2015 regarding 5.1% annual tax increase.
(Note to subscribers: Our email to you only allows publishing small graphic files. They often are not that readable: however, if you cannot enlarge the Appendix #1 Oak Bay News Letters to Editor May 22, 2015, and as they are worth a reading, please visit our website at oakbaywatch.com, and click on the March 12, 2022 Newsletter. A much clearer (larger file) version of the letters is available there.
As indicated in the Oak Bay Watch March 4, 2022 Newsletter, the 2022-2026 Financial Plan forecasted a 27% tax increase. This was based on an annual still high, 4.9 % property tax increase for the Plan’s 5 years. However, it must be noted, and what has been considered “creative accounting“, that this Council has “deferred” significant expenditures that the next Council and property tax payers will have to grapple with and somehow address.
The Financial Plan indicates that:
- The Marina upgrading is estimated to cost Oak Bay Taxpayers $2,267,000 over the next four years ($1,386,000 in 2023). However, it is not clear if this was factored into the 5-year optimistic 4.9% forecasted average property tax increase.
- The 2019 Carnarvon Park Master Plan calls for a new field-house building – a stated, “resident priority”. The Plan’s implementation schedule indicates that the building design (cost $305,000) is to be completed in 2022 and the building work is to be started, also in 2022. The Financial Plan, however, states that, although the $305,000 for the building design is in the 2022 budget, the start for the $500,000 new field-house has now been deferred until 2025. As nothing these days seems to be getting less expensive there is no doubt that the “design and build” in the 2022 Carnarvon Park Plan’s schedule would have been a more economical and a much better community benefit option.
It is not clear why the municipal hall's $1,500,000 refurbishing and office space for the new administrative staff, furniture, equipment and support staffing etc., won out over the Marina and Carnarvon Park upgrades.
Is the District using residents’ property taxes being used for priorities that provide less benefit to the homeowners who provide them?
Oak Bay Watch Perspective: (More informative Financial information)
The corporate administration, according to the 2022 Financial Plan, is now costing very nearly $3,000,000 dollars (one tenth of the property tax revenue). A large portion of the $1,500, 000 municipal hall upgrade was spent on accommodating the new staff. The Financial Plan indicates we are not finished building the expensive Corporate Administration just yet. Another $150,000 administration staff increase is planned for 2023.
The rationale provided for the 2023 and previous administrative staff increases has been “to maintain service levels”. However, it is not clear to us how all of this new “corporate structure and expenditure” is maintaining the most important services a municipality provides for its residents: water supply, sewage collection and disposal, municipal roads and storm water drainage, police and fire services, municipal parks and recreation, heath services, and street lighting etc.
It is also not clear to us, that with the millions of dollars in capital expenses continually deferred and now looming, and the District administration cost increases, how a 4.9% average tax increase is realistic.
For example and as indicated, the 2019 Carnarvon Park Master Plan’s $2,576,703 upgrade was scheduled to begin in 2022 and be completed in 2025. Council has now delayed it for more three years, presumably with a 2028 completion date – that is if funding is available and all goes well.
However, with the way costs are rising; the Administration continues to expand and the impact of Council’s densification without taxation initiative, it is likely the municipal hall will be undersized again and require another refurbishing, before the Carnarvon Park Master Plan’s phased-implementation is completed.
The reason that we are not as overly optimistic as Council is that Council’s promises to the future in the past , have not played out all that well. For example, the blame for the first big 5.1% property tax increase in 2015 was explained in an Oak Bay News letter in the May 22, 2015 by one of our sitting Councillors.
She stated, “past Councils have kept taxes down by deferring costs for major infrastructure projects” and “to leave these costs for future generations would be irresponsible and unfair” (See full text Appendix #1).
There would be no complaint about the now standard, similar-to-2015, 5.1% high property tax increases if they were spent mainly for the municipal services referenced above and not on this and the past two Councils’ densification and administrative staffing priorities.
------------------------------------------------------
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 Donate Button at bottom of oakbaywatch.com Home Page)
Keep informed and sign up for our newsletter – bottom of Newsletter Menu Item.
Appendix #1: Oak Bay News Letters to Editor May 22, 2015 regarding 5.1% annual tax increase.
(Note to subscribers: Our email to you only allows publishing small graphic files. They often are not that readable: however, if you cannot enlarge the Appendix #1 Oak Bay News Letters to Editor May 22, 2015, and as they are worth a reading, please visit our website at oakbaywatch.com, and click on the March 12, 2022 Newsletter. A much clearer (larger file) version of the letters is available there.
