Council approves budget reductions to achieve lower tax rate increase for Port Moody taxpayers

At a Special Council Meeting on March 5, 2024, Port Moody City Council approved one million dollars in budget reductions which will result in a tax rate increase for the average household of 6.6 per cent, down from 8.37 per cent as proposed in January 2024. 

“We have heard from our residents and business owners that the tax rate increase proposed at the beginning of our budget consultation process was too high,” said Mayor Meghan Lahti. “We understand the economic pressures that people are facing, and so we want to do what we can to keep the increase as low as possible while maintaining service levels that help ensure our community is a vibrant and liveable place for everyone. Council asked staff to look at ways we could reduce the City’s overall budget to reduce the burden on taxpayers, and we’re pleased to share the tax rate increase has been lowered by 1.8 per cent.” 

In 2024, the City will collect approximately $58 million ($5.1 million more than last year) in property taxes from residents and businesses to balance the budget. The tax rate increase for the average household is 6.6 per cent. This means in 2024 the average household will see an increase of approximately $188 for the year – that’s $3.60 per week or $0.50 per day. “Average household” refers to a Port Moody residential property assessed at $1.27 million by BC Assessment. 

Total property charges including utility fees (which residents and businesses have already paid in 2024) are estimated to be $4,600 for the average household, representing a 6.2 per cent increase over 2023. 

Budget reductions were achieved through:

1. incorporation of updated BC Assessment growth projection revenues;
2. incorporation of updated revenue and expense information based on 2023 year-end results for service areas such as fiscal services, recreation, bylaws and licensing, cultural services, and library services;
3. operating budget reductions for Port Moody Police;
4. reduced parks maintenance support for responsible liquor consumption; and
5. folding Port Moody Community Fair into Car-Free Day. 

The increased property taxes collected in 2024 will cover rising costs related to factors such as: inflation; labour costs including salaries and wages; employee benefits; insurance; public safety resources; implementation of the City’s Climate Action Plan; replacement of existing critical infrastructure, amenities, and facilities; and increased demand for City services. 

In January, we invited the public to participate in our 2024 budget consultation by visiting Engage Port Moody, our online public engagement hub. On the project page, we shared information about the Provisional 2024-2028 Financial Plan and invited the public to fill out a community survey. We asked residents and business owners to tell us how they felt the City should balance service levels and tax rates, and what they thought of the proposed funding levels for specific service areas. Public engagement results were shared with Council on February 20, 2024 – see item 4.5 in the agenda package for City staff’s report to Council and the public engagement summary. 

The City has two types of budget expenses: operating and capital. Our operating budget covers spending related to Port Moody’s day-to-day operations. The City’s capital budget funds larger, longer-term projects, mostly related to maintaining, upgrading, and replacing the City’s infrastructure and facilities. For a list of capital projects, please read the Provisional Five-Year Financial Plan for 2024-2028. 

Council’s budget deliberations have now concluded. City staff will now prepare Financial Plan and Tax Rates bylaws for Council’s consideration in April 2024. Municipalities must set their property tax rates by bylaw before May 15 of each year. For more information on the City’s budget process and schedule – including links to Council meeting agenda packages, videos, and presentations – please visit portmoody.ca/budget.