Saanich Faces 8.74% Tax Increase Amid Rising Costs

The District of Saanich is contending with a projected 8.74 percent tax increase for 2026, as outlined in a report presented by the finance department. This increase reflects ongoing challenges such as inflation, rising living costs, and trade tensions with the United States. The Saanich council is grappling with how to balance the needs for affordability against the necessity of maintaining essential services.

Paul Arslan, the district’s director of finance, noted that the anticipated tax hike is driven primarily by escalating labor costs, capital projects, and rising service expenses. In his presentation, Arslan detailed that the increase comprises 4.36 percent for maintaining current operation costs, 2.23 percent for recommended capital projects, and 2.15 percent for police services and the Greater Victoria Public Library. “The challenge for council is to determine the annual tax increase that meets affordability while ensuring the sustainability of services,” he stated.

As labor costs continue to be a significant factor, they account for over 57 percent of the general operating budget. For the upcoming year, labor increases—encompassing both wages and benefits—are estimated at $9.4 million, impacting municipal and police staff. The report also proposed exploring budget reduction scenarios of one to two percent to alleviate the projected tax increase.

In response to the rising figures, Councillor Nathalie Chambers expressed concern, advocating for a more aggressive approach to budget cuts. “I got a little bit stressed out when I read this budget,” she remarked, urging that the council needs to tighten its financial management. Last year, the council struggled to keep the budget below the 8 percent threshold, ultimately settling at 8.02 percent.

Councillor Karen Harper supported Chambers’ motion, emphasizing the importance of evaluating essential versus non-essential services. “It’s crucial that we start looking at what we must have versus what we would like to have,” she noted. This sentiment was echoed by Councillor Judy Brownoff, who emphasized the daunting challenge of finding a $7.6 million reduction, stating that every dollar in the budget counts.

Councillor Teale Phelps Bondaroff agreed to consider potential reductions but cautioned against cuts exceeding two percent. He expressed concerns that deeper cuts would negatively impact services that residents value. “We hear from residents that are quite happy with existing services,” he added.

With increasing tax rates a consistent trend—rising from 5.2 percent in 2019 to the current projection—the council is aware of the pressing need for budgetary reform. Councillor Colin Plant warned that the municipality is not on a sustainable path and suggested that cuts to existing services may be unavoidable. “We have to start to wrestle the budget back down,” he remarked, indicating that community feedback has been overwhelmingly critical of the current fiscal direction.

Councillor Zac de Vries acknowledged the importance of addressing the budgetary burden but cautioned against unintended consequences from aggressive cost-cutting. He urged his fellow council members and Saanich residents to carefully consider the implications of short-term financial decisions on long-term service delivery.

The draft budget for 2026 is set to be presented to the council in the winter, with public engagement opportunities through surveys planned for mid-February. The council aims to finalize and adopt the budget by May 2026, as it navigates the complex landscape of fiscal responsibility amidst escalating costs.