The City of Surrey will use new provincial infrastructure funding to shave an estimated five points from a proposed 17.5 per cent property tax hike.
Mayor Brenda Locke confirmed the move at a public hearing Monday, hours before council deferred a planned vote on the 2023 budget, sending the document back to staff to review with consideration to the new money.
More than half of Surrey’s proposed tax hike, 9.5 per cent, had been earmarked for costs associated with scrapping the city’s transition to a municipal police force, Locke’s marquee campaign promise.
Locke said the city had secured $89.9 million in guaranteed infrastructure funding and was now “confident” the city could reduce the policing-related tax increase.
“As a result, the proposed budget will be updated with the new infrastructure funds from the province. In this case, revisiting the budget to factor in the new monies will result in a decrease of the property tax rate currently proposed,” Locke said.
“While we await for the final numbers from finance, I am confident that the policing surcharge will be decreased from the proposed 9.5 to 4.5 per cent. That’s a five per cent cut from what was currently proposed.”
The reduction will still leave Surrey homeowners on the hook for a 12.5 per cent tax increase.
“Just to be clear, this covers only the cost of unwinding two police forces to have only the RCMP as the police of jurisdiction in Surrey, and does not cover the extra costs that would occur if we continue ahead with this costly transition,” Locke said.
“The new rate, should it pass, would continue to keep Surrey in the bottom third of property taxes in the Metro Vancouver region.”
B.C.’s provincial government announced a one-time, billion dollar pool of infrastructure grants last month.
Monday’s public hearing was intended to allow residents to weigh in on the proposed 2023 budget and tax increases.
Surrey First Coun. Linda Annis told Global News she was concerned the public meeting is being held mid-afternoon, when many residents aren’t able to come.
“It’s unfortunate this meeting is taking place this afternoon when so many people are working or picking their children up from school,” she said.
“We should have it when people are available to come and see council, we want to be open and transparent. And to be doing a meeting that’s so significant in the afternoon, it just doesn’t feel right.”
The future of Surrey’s police transition remains in the hands of the provincial Ministry of Public Safety, with a final decision likely still weeks away.
The city has estimated that keeping the RCMP and disbanding the Surrey Police Service will be cheaper than proceeding with the transition, but still leave the city with a shortfall of $116 million.
Locke maintains that scrapping the transition is the more cost-effective option, and said she did not want to make any cuts to city services.
Annis said there should be an independent review of the projected costs, which are still the subject of dispute from various sides.
She added that the combined 17.5 per cent hike will leave the average Surrey homeowner with a tax bill increase of $400.
The remainder of the proposed increase is being earmarked for road and infrastructure repairs, inflationary costs and city operations.
About seven per cent of it funds the hiring of more police officers and firefighters above the current funded force strengths.
Surrey Board of Trade president and CEO Anita Huberman said the city’s business community will end up shouldering a disproportionate amount of the costs.
”Some of our manufacturers have already faced 150-per cent property tax increase in each of the three years previously. So I mean it’s unsustainable to do business. So we’re so concerned about what’s gonna happen in July,” she told Global News on Sunday.
It was not immediately clear when Surrey city council would reconvene to vote on the budget. A final decision must be made by the middle of May.