Saanich Council Faces 8.74% Tax Hike Proposal for 2026

The District of Saanich is confronting a proposed tax increase of 8.74% for the year 2026, a figure that has raised concerns among local officials and residents alike. This projection, presented by the finance department, highlights the ongoing financial pressures stemming from inflation, escalating living costs, and trade tensions with the United States.

In a recent council meeting, Saanich’s director of finance, Paul Arslan, detailed the factors driving this significant increase. The budget reflects a combination of elements, including 4.36% for maintaining current operations, 2.23% for recommended capital projects, and 2.15% for police services and the Greater Victoria Public Library. Arslan noted that labour costs remain the primary contributor to the budget, accounting for over 57% of the general operating expenses. For 2026, increases in wages and benefits are projected to total $9.4 million, shared between municipal and police employees.

Saanich council members are now tasked with balancing the need for service sustainability with the residents’ demand for affordability. Arslan commented, “The challenge for council of the day is to determine the annual tax increase that both meets the desire of affordability but also the service provision and sustainability of the services.”

Debate on Budget Reductions

In response to the daunting tax increase, some council members are advocating for budget reductions. Councillor Nathalie Chambers proposed scenarios that could stretch reductions to 3% and 4% in an effort to limit the tax hike. “I got a little bit stressed out when I read this budget, and we really need to rein things in,” she stated, referencing the previous year’s struggle to keep the budget below 8%.

Councillor Karen Harper supported Chambers’ motion, emphasizing the importance of distinguishing between essential and non-essential expenditures. “It’s very important that we start looking at what are the things that we must have versus the things that we would like to have,” she explained. This viewpoint was echoed by Councillor Judy Brownoff, who acknowledged the difficulty of achieving significant cuts but stressed the urgency of addressing the budgetary challenges. “For me, it has to be more this year. Everybody is suffering,” she asserted.

While some council members are open to exploring deeper cuts, others, like Teale Phelps Bondaroff, express skepticism about the feasibility of such reductions. He noted, “I don’t foresee anything above 2% that would be reasonable insofar as it wouldn’t dramatically impact or rather would eat into our existing services.”

Future Budget Considerations

The ongoing discussions around the budget underscore a broader concern regarding the sustainability of Saanich’s financial practices. Councillor Colin Plant warned that without significant budgetary adjustments, the municipality is not on a sustainable path. “I am not going to be able, in this fiscal climate, to support new initiatives,” he said, emphasizing the need for cuts to existing services and a halt on future projects.

Councillor Zac de Vries acknowledged the importance of addressing the budgetary burden but cautioned that any cost-cutting measures may come with trade-offs. “We always strive to do the very best that we can, but it is a pressing reality that these costs are not easy to wrestle down,” he remarked. He urged both council members and Saanich residents to consider the long-term implications of immediate financial decisions.

The council will receive the draft budget in the coming months, with public input sought through surveys scheduled for mid-February. The final budget is expected to be adopted in May 2026. This proposed tax increase marks a notable rise from the previous years, with rates of 8.02% in 2025, 7.93% in 2024, and 5.2% in 2019, highlighting an ongoing trend of increasing financial pressures faced by the municipality and its residents.