Explainer: Surrey’s property tax increase and 2021 budget
Two councillors stepped down from their roles in the Parcel Tax Review Committee in protest of the tax hike
The City Surrey Council approved the city’s 2021 budget, which includes a number of controversial tax increases. Passed in a five-to-four vote on Dec. 7, Budget 2021 and its five-year financial plan polarized both sides of the virtual meeting.
Mayor Doug McCallum said in a statement that while he understands not increasing the burden faced by taxpayers, “the adversity that we face now with the pandemic will eventually come to an end, and Budget 2021 plans for life after COVID by investing in public projects in the form of facilities, parks and other infrastructure projects.”
For the third year in a row, the city will see a 2.9 per cent property tax increase and a 200 per cent increase in the capital parcel tax — from $100 to $300 per household. In response, city councillors Brenda Locke and Jack Hundial quit their positions on the Parcel Tax Review Committee.
Property taxes will increase by approximately $60 per single-family dwelling. When combined with the parcel tax, which is a flat fee not tied to property values, the average homeowner can expect to pay an additional $260 in taxes next year.
The parcel tax had its first increase since its 2015 introduction. Despite opposition, McCallum said that the tax will fund 16 capital infrastructure projects, with work commencing next year. This includes the Newton Community Centre, Cloverdale Sport and Ice Complex, Bear Creek Park Athletics Centre, an Indigenous carving centre, trail and path developments, new park washrooms, and artificial turf replacements.
“As Surrey continues to grow and prosper, and with more and more people moving here it is important that our public amenities keep pace with our growth,” said McCallum.
The city expects property taxes to result in $11.2 million in additional revenue, while the parcel tax will bring in an additional $31.7 million.
One of the budget’s biggest components is implementing a Surrey Police Force that will phase out the RCMP. In preparation, the RCMP budget will be reduced by 25 per cent, while $184 million will go towards the Surrey Police Force, plus an additional $23 million in one-time transition funding.
About $730,000 is allotted for hiring 10 additional firefighters, with half of the funding being provided in 2021 and the remainder in 2022. The new firefighters will be located in North Surrey and downtown.
Utilities will also increase in price. Water usage will increase by $13.24 per year for the average metered single-family home and $29.44 for non-metered customers. Sewage will increase by $19.30 for single-family homes and $42.88 for non-metered customers. Solid waste pickup rates will increase by $9 for single and multi-family homes and $1 for apartments and townhomes.
Surrey City Councillor Linda Annis tweeted that “Mayor & his councillors just passed the 2021 budget. Taxpayers are being treated like ATMs…Mayor & his councillors could have helped relieve hard hit taxpayers tonight by eliminating a painful tax hike. They decided NO.”
“City Council has also made sure that Budget 2021 pairs strong community investment with fiscal responsibility,” said McCallum. “When it comes to property tax rates, I am very proud to say that Surrey continues to be in the bottom third of all Metro Vancouver cities.”
