2025 Budget Information

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At various public Council and Committee of the Whole meetings over the past few months, Council has reviewed and analyzed the individual department budgets for the City.

What are City Council's spending priorities for 2025?

Council prioritizes projects and services and decides what needs to be accomplished in the year, balanced against what those services cost the taxpayer each year. In 2025 the focus is paying for policing costs, forging ahead with necessary capital infrastructure projects and increasing safety in the City.

Council is inviting public comments on the spending priorities and taxes to be collected for 2025.



Sources of Revenue

Other Revenue Own Sources includes:

  • Business and dog licences,
  • Building and related permits,
  • Real Estate rentals,
  • Parking permits, and
  • Land use alteration fees.



Services Provided

These services are provided by the City of Duncan:

  • Water,
  • Sewer,
  • Garbage, Recycling, Organics, Glass & Yard Waste Collection,
  • Road Maintenance and Repair, Snow Removal,
  • Sidewalks, Curbs, Gutters,
  • Storm Water Drainage,
  • Street Lighting,
  • Parks & Recreation,
  • Fire Protection and Inspections,
  • Police Protection,
  • Bylaw Enforcement, and
  • Building & Development Permits and Inspections.


Services Not Provided

  • Education,
  • Healthcare,
  • Highways,
  • Ferry Service,
  • Library,
  • Public Transit, and
  • Housing.


Your Property Tax Bill

Your property tax bill includes municipal taxes and policing levies. In addition, the City of Duncan collects taxes on behalf of these other governments and agencies:

  • School Tax (Province of BC),
  • Cowichan Valley Regional District,
  • Cowichan Hospital District,
  • BC Assessment Authority, and
  • Municipal Finance Authority.

For some business property owners, the City collects levies on behalf of the Downtown Duncan Business Improvement Area (DDBIA).

Most property tax bills will also have the sewer charges added on for the year.



Tax Increase


What is the proposed tax increase for 2025?

The Draft 2025 Financial Plan shows the following tax increases:


% Increase$ Increase
Police Costs11.73%$735,799
Operating Costs0.85%$53,470
Capital Asset Management1.75%$110,922
Use of Police Reserves for Smoothing-0.72%- $37,800
Total Increase13.61%$862,391
Paid for by New Construction-2.31%$104,324
Total Increase to be paid by existing taxpayers11.30%$758,067


Click here to view the agenda for the Nov 1st budget meeting
https://duncan.civicweb.net/filepro/documents/?preview=206132

Click here to view the agenda for the Nov 15th budget meeting
https://duncan.civicweb.net/filepro/documents/?preview=206707

Property Tax:

Inflation requires an increase in taxes, just to keep paying for general maintenance budgets. During the last year we have seen higher than average cost increases on things such as fuel & repairs for our equipment, and materials used for things such as street and traffic maintenance.

A significant amount of asset management planning goes into the maintenance of City infrastructure. If taxes are not increased each year to account for inflation, the result would have to be a reduction in maintenance budgets or a deferral of major capital works. This could result in the failure of an asset (equipment or municipal building) which then would require higher future taxes to pay for emergency repairs or replacement. Eventually the deferred major capital works must also be done, which would again result in higher future taxes to do the works that should have been done.

Policing Costs:

For 2025, the Province of BC has increased the number of officers the City is responsible to pay for. In 2023 the City was responsible for paying for 9 officers, in 2024 the City was responsible for paying for 10 officers, and in 2025 the City will be responsible for paying for 11 officers. This number will increase again in 2026 to 12 officers. The City has also had to transition from paying the Province for support staff, to paying North Cowichan for support staff, which comes at an increased cost. In addition to RCMP members and support staff, the City also has to cost share in IT support, network costs, guards for keeping prisoners, and a crime analyst. The building costs (including debt payments) for the new police detachment building are shared between North Cowichan and Duncan.

In order to smooth out the transition costs, Council has decided to use $37,800 from police reserve accounts. This does not eliminate the tax increase, but rather pushes it forward to the next year.



Expenses by Function



Major Highlights
What are the major changes in the 2025 budget compared to 2024?
The increase is comprised of the following changes:

REVENUES:
260 White Road Provincial Govt grant in lieu of taxes - new revenue stream$8,400
Traffic fine revenue sharing increased from 13k to 30k per year$17,000
Provincial Grant parking lot lease - increased revenue$5,000
Interest revenue - increase due to high rates and high reserves$71,128
New: Additional rental income retained in operating budget$54,500
Tax penalties - based on history - increase to revenue$10,000
Pay parking - increase to revenue due to new parking lots$5,000
Increase to parking fees for 2025$36,700
EXPENSES:
Insurance - increase in liability and property premiums$9,280
Police protection and accommodation - increase from 10 officers to 11 officers and increase in accommodation and support staff costs$506,798
Previous police costs paid from reserves - now must be made up$225,000
Increase in library requisition$15,230
Increase in Council pay as per bylaw$5,684
Increase in IT software and services$8,000
City Hall janitorial cost increases (contract awarded by Council)$5,200
PW Office janitorial cost increase (contract awarded by Council)$6,503
Canada Ave washrooms janitorial cost increase (contract awarded by Council)$5,730
Addition of seasonal park labourer$40,469
Increase in HR Consultants expense$6,000
Restorative Justice funding (last year was $4,000 from police operating reserve)$4,000
Fire dept expense increases ($167,874 less 49% paid by partners)$85,615
Safety contractor - additional consultant work to address gaps in the safety program$5,000
Increase in street sweeping expenses$30,000
Increase in general equipment reserve contribution, for various equipment$23,000
Increase in snow removal costs$14,375
Bylaw transportation cost increase$5,425
25% of City Planner salary now coming from taxes and 75% from Planning & Building reserve. Previous years were all funded from COVID grant funding$26,900
Increase in contribution to capital: 3% increase over last year for inflation$21,195
Increase in contribution to capital: 1.75% increase in taxation for asset management plan$110,905
Increase to operating wages (CUPE and exempt) excluding sewer, water, and capital$91,000
Advertising expense reduction (passed bylaw that we only have to advertise once instead of twice)($3,000)
Increase to PW admin charges. As PW costs increase, so does the admin fee to water & sewer, this is a revenue line to PW($39,600)
Increase to admin department fees from water and sewer, as administration expenses increase, so does the charges to water and sewer. This is a revenue line to admin($35,000)
Decrease in operating costs for Cowichan Aquatic Center - now fully funded from regional recreation($132,400)
Sportsplex public use fees - now fully funded from regional recreation($5,000)
Misc other expenses and revenue fluctuations$74,610
New: use of police reserves for smoothing($37,800)
Total required increase to tax collected for 2025$862,391
Contribution from new construction($146,598)
Total increase to be paid by existing taxpayers$715,793



If the property tax increase is 11.30%, will my property taxes go up by 11.30%?

An increase or decrease in your property assessment does not mean your taxes will automatically go up or down by the same amount.

In January, property assessment notices are mailed annually to the property owners throughout the province from BC Assessment, an independent agency created by the Provincial Government for the purpose of valuing all properties in BC for taxation purposes. Your assessment notice estimates the market value of your property as of July 1st of the previous year.

Properties that increase in value by the same percentage as the average property will experience a tax increase at the same rate as the overall tax increase set by City Council. Properties that increase or decrease in value by more or less the average will experience changes in their taxes that are more or less than the average increase.


For further information about property taxes, please contact Bernice Crossman at City Hall in-person at 200 Craig Street, by phone (250-746-6126), or by email (bernice@duncan.ca).

At various public Council and Committee of the Whole meetings over the past few months, Council has reviewed and analyzed the individual department budgets for the City.

What are City Council's spending priorities for 2025?

Council prioritizes projects and services and decides what needs to be accomplished in the year, balanced against what those services cost the taxpayer each year. In 2025 the focus is paying for policing costs, forging ahead with necessary capital infrastructure projects and increasing safety in the City.

Council is inviting public comments on the spending priorities and taxes to be collected for 2025.



Sources of Revenue

Other Revenue Own Sources includes:

  • Business and dog licences,
  • Building and related permits,
  • Real Estate rentals,
  • Parking permits, and
  • Land use alteration fees.



Services Provided

These services are provided by the City of Duncan:

  • Water,
  • Sewer,
  • Garbage, Recycling, Organics, Glass & Yard Waste Collection,
  • Road Maintenance and Repair, Snow Removal,
  • Sidewalks, Curbs, Gutters,
  • Storm Water Drainage,
  • Street Lighting,
  • Parks & Recreation,
  • Fire Protection and Inspections,
  • Police Protection,
  • Bylaw Enforcement, and
  • Building & Development Permits and Inspections.


Services Not Provided

  • Education,
  • Healthcare,
  • Highways,
  • Ferry Service,
  • Library,
  • Public Transit, and
  • Housing.


Your Property Tax Bill

Your property tax bill includes municipal taxes and policing levies. In addition, the City of Duncan collects taxes on behalf of these other governments and agencies:

  • School Tax (Province of BC),
  • Cowichan Valley Regional District,
  • Cowichan Hospital District,
  • BC Assessment Authority, and
  • Municipal Finance Authority.

For some business property owners, the City collects levies on behalf of the Downtown Duncan Business Improvement Area (DDBIA).

Most property tax bills will also have the sewer charges added on for the year.



Tax Increase


What is the proposed tax increase for 2025?

The Draft 2025 Financial Plan shows the following tax increases:


% Increase$ Increase
Police Costs11.73%$735,799
Operating Costs0.85%$53,470
Capital Asset Management1.75%$110,922
Use of Police Reserves for Smoothing-0.72%- $37,800
Total Increase13.61%$862,391
Paid for by New Construction-2.31%$104,324
Total Increase to be paid by existing taxpayers11.30%$758,067


Click here to view the agenda for the Nov 1st budget meeting
https://duncan.civicweb.net/filepro/documents/?preview=206132

Click here to view the agenda for the Nov 15th budget meeting
https://duncan.civicweb.net/filepro/documents/?preview=206707

Property Tax:

Inflation requires an increase in taxes, just to keep paying for general maintenance budgets. During the last year we have seen higher than average cost increases on things such as fuel & repairs for our equipment, and materials used for things such as street and traffic maintenance.

A significant amount of asset management planning goes into the maintenance of City infrastructure. If taxes are not increased each year to account for inflation, the result would have to be a reduction in maintenance budgets or a deferral of major capital works. This could result in the failure of an asset (equipment or municipal building) which then would require higher future taxes to pay for emergency repairs or replacement. Eventually the deferred major capital works must also be done, which would again result in higher future taxes to do the works that should have been done.

Policing Costs:

For 2025, the Province of BC has increased the number of officers the City is responsible to pay for. In 2023 the City was responsible for paying for 9 officers, in 2024 the City was responsible for paying for 10 officers, and in 2025 the City will be responsible for paying for 11 officers. This number will increase again in 2026 to 12 officers. The City has also had to transition from paying the Province for support staff, to paying North Cowichan for support staff, which comes at an increased cost. In addition to RCMP members and support staff, the City also has to cost share in IT support, network costs, guards for keeping prisoners, and a crime analyst. The building costs (including debt payments) for the new police detachment building are shared between North Cowichan and Duncan.

In order to smooth out the transition costs, Council has decided to use $37,800 from police reserve accounts. This does not eliminate the tax increase, but rather pushes it forward to the next year.



Expenses by Function



Major Highlights
What are the major changes in the 2025 budget compared to 2024?
The increase is comprised of the following changes:

REVENUES:
260 White Road Provincial Govt grant in lieu of taxes - new revenue stream$8,400
Traffic fine revenue sharing increased from 13k to 30k per year$17,000
Provincial Grant parking lot lease - increased revenue$5,000
Interest revenue - increase due to high rates and high reserves$71,128
New: Additional rental income retained in operating budget$54,500
Tax penalties - based on history - increase to revenue$10,000
Pay parking - increase to revenue due to new parking lots$5,000
Increase to parking fees for 2025$36,700
EXPENSES:
Insurance - increase in liability and property premiums$9,280
Police protection and accommodation - increase from 10 officers to 11 officers and increase in accommodation and support staff costs$506,798
Previous police costs paid from reserves - now must be made up$225,000
Increase in library requisition$15,230
Increase in Council pay as per bylaw$5,684
Increase in IT software and services$8,000
City Hall janitorial cost increases (contract awarded by Council)$5,200
PW Office janitorial cost increase (contract awarded by Council)$6,503
Canada Ave washrooms janitorial cost increase (contract awarded by Council)$5,730
Addition of seasonal park labourer$40,469
Increase in HR Consultants expense$6,000
Restorative Justice funding (last year was $4,000 from police operating reserve)$4,000
Fire dept expense increases ($167,874 less 49% paid by partners)$85,615
Safety contractor - additional consultant work to address gaps in the safety program$5,000
Increase in street sweeping expenses$30,000
Increase in general equipment reserve contribution, for various equipment$23,000
Increase in snow removal costs$14,375
Bylaw transportation cost increase$5,425
25% of City Planner salary now coming from taxes and 75% from Planning & Building reserve. Previous years were all funded from COVID grant funding$26,900
Increase in contribution to capital: 3% increase over last year for inflation$21,195
Increase in contribution to capital: 1.75% increase in taxation for asset management plan$110,905
Increase to operating wages (CUPE and exempt) excluding sewer, water, and capital$91,000
Advertising expense reduction (passed bylaw that we only have to advertise once instead of twice)($3,000)
Increase to PW admin charges. As PW costs increase, so does the admin fee to water & sewer, this is a revenue line to PW($39,600)
Increase to admin department fees from water and sewer, as administration expenses increase, so does the charges to water and sewer. This is a revenue line to admin($35,000)
Decrease in operating costs for Cowichan Aquatic Center - now fully funded from regional recreation($132,400)
Sportsplex public use fees - now fully funded from regional recreation($5,000)
Misc other expenses and revenue fluctuations$74,610
New: use of police reserves for smoothing($37,800)
Total required increase to tax collected for 2025$862,391
Contribution from new construction($146,598)
Total increase to be paid by existing taxpayers$715,793



If the property tax increase is 11.30%, will my property taxes go up by 11.30%?

An increase or decrease in your property assessment does not mean your taxes will automatically go up or down by the same amount.

In January, property assessment notices are mailed annually to the property owners throughout the province from BC Assessment, an independent agency created by the Provincial Government for the purpose of valuing all properties in BC for taxation purposes. Your assessment notice estimates the market value of your property as of July 1st of the previous year.

Properties that increase in value by the same percentage as the average property will experience a tax increase at the same rate as the overall tax increase set by City Council. Properties that increase or decrease in value by more or less the average will experience changes in their taxes that are more or less than the average increase.


For further information about property taxes, please contact Bernice Crossman at City Hall in-person at 200 Craig Street, by phone (250-746-6126), or by email (bernice@duncan.ca).

Page published: 07 Jan 2025, 01:41 PM