During a period of economic hardship and financial strain for many, a recent report has unveiled concerning trends in city spending that may be exacerbating the situation.
According to data from the BC Business Council (BCBC), a significant 78% of municipalities across the province have been increasing their spending at a rate faster than population growth between 2013 and 2023. This has resulted in a staggering $3.6 billion in excess spending.
One of the key findings of the report is that property taxes for homeowners surged by 94% from January 2010 to July of this year, far outpacing inflation rates and the national average for property tax increases.
Jairo Yunis, the Director of Policy at BCBC, highlighted that municipalities have been overspending by $834 per capita over the past decade, with a large portion of this excess going towards essential services like policing, sanitation, parks, transit, and administration. Surprisingly, spending in areas traditionally under provincial jurisdiction such as health, housing, and social services has also seen a significant uptick.
The report has prompted concerns about potential duplication of services and inefficiencies between the province and municipal governments. David Williams, the Vice President of Policy at BCBC, pointed out that unless there are clear improvements in service quality, municipalities could be losing efficiency in delivering core services and may be overreaching into provincial responsibilities.
In response to these findings, BCBC has put forth five recommendations aimed at curbing excessive spending by municipalities.
Notably, smaller communities outside the Lower Mainland, such as Tofino, Comox, Vanderhoof, and Armstrong, have experienced disproportionate increases in spending compared to their population growth rates. Conversely, places like Fort St. James have seen operating spending rise despite a decline in population.
Keyphrase: city spending trends