Ken MacLeod and his wife Cheryl were happy to retire in Courtenay 11 years ago, but in recent years they’ve been feeling strangled by taxes.
In 2015, they were paying roughly $1,850 — about $300 more than 2008. This year, their taxes jumped to nearly $2,700 after the homeowner and seniors grant.
Sooner than later, the retired teacher feels property taxes will become unsustainable for many homeowners and business owners.
RELATED: Letter – Taxpayer says city spending at unsustainable rate
“I’m seriously concerned for the people of the Valley,” said MacLeod, who is especially concerned for businesses and those living on the poverty line. “More and more (people) are forced to defer their taxes. Basically, the City finances are on shaky ground.”
MacLeod will make a presentation about the issue Tuesday, July 3, at Courtenay council.
“Mr. MacLeod is not alone in telling me that property taxes have gone up incredibly,” said Mayor Larry Jangula, who notes that Courtenay contains fewer businesses this year than last. One problem is competition from online shopping, but he said taxes have also taken a toll.
“I think the issue is that people are very upset about tax increases. I think there’s a real concern about what happens in the future.”
MacLeod claims that business taxes have increased 150 per cent in the past five years. The City, however, says taxes on an average commercial business have increased 9.33 per cent over the past five years.
Taxes are affected by how a property’s assessed value changed in relation to the average change for that property class in the municipality. City CAO David Allen said MacLeod’s property assessment increased by 55 per cent over the past five years — 20 per cent more than the average residential property in Courtenay. The average property tax increase over the same time frame was 16 per cent. Over that same five-year period, Allen notes that taxes for other jurisdictions increased by 28 per cent.
“The City of Courtenay is required by legislation to collect revenue for these other authorities,” Allen said. “The City of Courtenay does not control these charges.”
He also notes that increasing local government costs for regional services such as water and sewer are covered by user fees. Utilities are generally self-funding. Provincial and federal regulations often dictate the standard of services that local governments provide, Allen added.
“Responsible stewardship of our community’s assets is a priority for the City of Courtenay,” he said. “Each budget year, services and costs are reviewed in order to provide city council with options before final taxation decisions are made.”
But MacLeod feels taxpayer dollars are being spent recklessly. For instance, he feels the City hired 17 employees last year when it couldn’t afford to do so. He also feels some members of council cannot say no to any requests from groups for funding support.
Last year, council allocated $84,000 for the annual grant-in-aid program allocation.
Tuesday’s meeting begins at 4 p.m.
For more information, contact MacLeod at (250) 898-9406, or KenMacLeod2@gmail.com
