City proposes increasing property taxes in 2024 operating budget

FORT ST. JOHN B.C. — Property owners may see a 4.25 per cent increase in the tax rate this year, according to the draft of the 2024 operating budget presented to the Fort St. John council on January 22nd.

In his presentation, chief financial officer David Joy says the city has faced extraordinary inflationary pressures, supply chain issues, and significant interest hikes.

Joy notes that by increasing taxes and using funds from the Peace River Agreement (PRA), the city would balance the budget. Even with the tax increase, he says the city’s tax rate was lower than 59 per cent of similar-sized municipalities. 

With an average property value of $341,852, homeowners are expected to pay $1909 in taxes this year compared to $1,836 in 2023, an approximately $72 increase.

Commercial property tax owners will also face a similar situation to residential property owners. The average commercial property will pay an extra $741 in municipal taxes with an average property value of $926,026.

Joy says the tax increases are needed due to major budget changes, including staffing costs such as salaries, wages, and benefits. Those are expected to increase by over $2,548,000 compared to 2023.

Other increases to the operating budget include extra costs for High on Ice, the accessibility committee, employer health tax, and more.

On top of increasing the tax rate, the city will also take 10 per cent of the money provided by the Government of B.C. under the PRA to balance the operating budget. 

The PRA traditionally funds capital infrastructure projections like roads and municipal buildings. The funds used in the operating budget will directly support the new staff needed to operate any new city facilities.

Joy says that since 2024, the city has had to increase revenue to keep pace with expenses.

The City expects to bring in $39,127,233 in property tax revenue and another $14,540,500 in revenue from the sale of services.  

Council will now review the operating and capital budgets before making a final decision in the next few months.  The public will also get a chance to provide feedback on the budget in February. 

For more information, please visit the city’s website.

The full presentation on the 2024 operating and capital budgets to Fort St. John council can be viewed below: