Surrey city council to vote on 12.5% property tax hike

Decision on double-digit Surrey tax hike Property taxes could go up by 12.5 per cent and most of the proposed hike is linked to keeping the mayor's campaign promise on policing.

Surrey city council is set to vote on a double digit tax hike Monday.

A large portion of the increase is related to the cost of the mayor’s pledge to scrap a transition to a municipal police force.

Taxpayers could be on the hook for a 12.5 per cent increase in 2023.

That’s lower than the 17.5 per cent increase originally proposed back in February, thanks to $90 million in provincial funding announced last month.

However, the increase still leaves the average Surrey homeowner with a bill $280 more costly than last year’s.

Mayor Brenda Locke says the provincial cash infusion will be used to drive down the policing shortfall portion of property taxes and general inflationary pressures.

That includes city-wide operations and the hiring of an additional 25 police officers, 20 firefighters and 10 bylaw officers.

The business community argues the money from the province was meant for infrastructure, not operating expenses.

“Really ensuring that the potholes in our roads, those are fixed and other types of infrastructure investments to really increase the tax base and sustainability of our city. It wasn't meant to pay for an offset cause for a policing decision from the past,” said Anita Huberman, President and CEO of the Surrey Board of Trade.

Huberman says significant tax hikes, like the one being proposed, puts the local economy in jeopardy.

“Businesses are not prepared for these uncertain property tax increases. It's an additional expense, something that they can't prepare for. And yes, they are at risk of not being able to survive in the face of great cost uncertainty,” said Huberman.

Coucillor Linda Annis says she’s in favour of funding capital projects and hiring more first responders, but will not be supporting the proposed increase because of the uncertainty surrounding the police transition.

“This increase is quite problematic to me. For example, we have an $85-million severance package if we were to go back to the RCMP that's been allocated for the Surrey Police Service. And we don't even know which way we're going yet,” said Annis.

She says a major tax hike will be too much for many residents and businesses to bear.

“I'm deeply concerned because the residents of Surrey moved to Surrey because it's affordable. And when cities start adding 12.5 per cent taxes to them, it makes Surrey soon to be unaffordable to the young families that live here, and seniors,” Annis told CTV News.

The current budget numbers are contingent on the move to the RCMP.

The province is still in the process of making its decision on the city’s proposal to stop the transition to the Surrey Police Service.

Supporting both policing agencies is costing taxpayers $8 million a month, according to the city’s finance department.

The solicitor general is expected to make a decision on the future of the transition early next month before tax notices are issued.

Annis says she’s frustrated that three months have passed and a decision has not been made. “We need to hear soon. This is taking too long and it's problematic because we can't develop a proper budget, not knowing which police have jurisdiction,” said Annis.

The Ministry of Public Safety and Solicitor General says analysis of the transition requires time to complete—adding it is a critical step in maintaining public safety in Surrey and beyond.

“The policing transition in Surrey is unprecedented and complex and requires a full and in-depth analysis. This matter affects not only policing in Surrey, but across the province,” said the ministry in a statement emailed to CTV News.

It says the stability of policing is a provincial responsibility and continues to be the government's core driving principle in the process.

With files from CTV News Vancouver’s Lauren Pullen