Chilliwack city council held hope last year that the grip of inflation was only going to be temporary, but the pressure has been "persistent" carrying into next year's municipal budget.
City council gave first and second reading to a proposed 7.17 per cent tax rate increase at the Nov. 18 meeting as part of its 2025 financial plan and budget bylaw. A full 3.44 per cent of the property tax increase alone will be needed just for the RCMP contract increase.
"While there has been some inflationary easing in the consumer economy, municipalities continue to be impacted by continued and persistent inflationary pressures," according to the staff report from Glen Savard, director of the finance department.
The 7.17 per cent increase on deck for 2025 is not as high as 2024's 7.75 per cent, but is significantly higher than 2023's 4.45 per cent increase.
A public hearing has been set for Dec. 3 to hear comments from the public on the budget in the 2025 financial plan.
It is the "continued economic landscape of inflation and rising costs" that are having a "substantial" impact on the City of Chilliwack, Savard pointed out.
"As an example, the cost escalation to the contract with the RCMP has had the single largest impact on the financial plan, requiring a 3.44% tax increase solely to fund this contracted service," not counting any additional RCMP members.
The report notes it's not just Chilliwack but "this is the reality confronted by all municipalities" in terms of policing across the province and the country, whether it be RCMP, provincial or municipal police forces.
The significant emphasis and priority on public safety was aimed to support the continued public safety goals of council.
This includes the addition of five (5) additional RCMP members, three and a half full-time equivalent (3.5 FTE) additional RCMP support positions, two (2) additional firefighters, increased funding towards firefighter training and equipment and one (1) bylaw enforcement officer.
In addition to inflationary and non-discretionary costs that leave little to no budgetary flexibility, many additional operational and capital requests had initially been put forward in response to operational service delivery challenges and to address capital needs that come with a rapidly growing city.
"Given the overall budgetary cost challenges presented within the financial plan, vigorous efforts were made to alleviate the impact on the 2025 tax increase as much as possible. However, in doing so, it was also imperative that certain service challenges be addressed. As a result, the 2025 financial plan has placed a heavy emphasis on public safety and has prioritized many needs in the areas of public safety services."
The 2025 financial plan "maintains or increases levels of service, ensures infrastructure is being maintained in good repair and funds all capital expenditures without debt," which is always in accordance with the city's "pay-as-you go" policy of no capital debt financing.
"The policing service additions been prioritized to help reduce crime trends and high per-officer caseloads, while providing support within policing service delivery. The firefighter additions have been incorporated to help with safe and effective fire response, while ensuring a continued high level of training and essential equipment is provided.
"The bylaw enforcement officer has been added to help respond to bylaw related service requests. Additionally, other city resources have been prioritized to aid demands for service, which includes an additional resource for each of the finance and human resources departments to help keep pace with service demands, a fleet mechanic to support timely and efficient equipment and fleet repairs and maintenance and a parks worker to help with the maintenance of increasing parks and green space areas.
There are plans to devote increased funding towards the roads repaving program to help keep up with the maintenance of road asphalt conditions.
The property tax increase of 7.17% breaks down as follows:
Net inflationary and non-discretionary obligations: 1.71%
RCMP contract increase: 3.44%
Additional RCMP members (5) and support staff (3.5): 1.37%
Additional firefighters (2) plus additional training and equipment: 0.32%
Additional city resources and services: 0.33%
