Council approves budget reductions to lower tax rate increase for Port Moody residents in 2025

At a Finance Committee Meeting on December 17, 2024, Port Moody City Council approved $2,676,100 in budget reductions which will result in a property tax rate increase for the average household of 5.71 per cent, down from 8.52 per cent previously prepared for public consultation in October 2024. 

“Locally, nationally, and globally, we’re facing challenging economic conditions, and our residents and business owners have told us they want the City to keep the tax rate increase as low as possible,” said Mayor Meghan Lahti. “The results of the 2024 Community Satisfaction Survey and the 2025 budget consultation indicate a willingness to achieve this through a reduction in service levels. After careful consideration, Council has approved a reduction in the overall budget to help reduce the burden on Port Moody taxpayers.” 

Budget reductions were achieved through:

• increases in revenue projections based on 2024 actuals for filming, recreation programming, and pay parking;
• strategic use of the accumulated surplus and operating reserves such as the Arts Reserve and the Development Processing Reserve to fund resources that are either supporting or advancing related initiatives;
• pausing the increase to the Climate Action Levy for one year, which will not impact the rollout of the current phase of the Climate Action Plan;
• service level adjustments and efficiencies in Community Services, Fire Rescue, and Engineering and Operations, such as a reduction in the level of boulevard grass cutting;
• removing or phasing in of proposed new services or resources in 2025, such as delaying implementation of Port Moody Police Department’s body-worn camera program; and
• reducing transfers to some operating reserves based on further analysis of needs. 

In 2025, the City will collect $61.8 million (approximately $3.3 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 5.71 per cent. In 2025 the average household would see an estimated increase of approximately $167 for the year – that’s $3.21 per week or $0.46 per day. “Average household” refers to a Port Moody residential property assessed by BC Assessment based on the 2025 preview roll amount of $1,291,000. The increase for each individual household will depend on the value of your household and your change in assessed value relative to the average change in assessed value for all other households. 

The City is collecting more in property taxes in 2025 to cover rising costs related to factors such as: labour costs including salaries and wages; mandatory federal payroll deductions; employee benefits; insurance; and construction costs. 

In October, we invited the public to participate in our 2025 budget consultation by visiting Engage Port Moody, our online public engagement hub. On the project page, we shared information about the Draft 2025-2029 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 tax rates and service levels. Public engagement results were shared with Council on November 19, 2024 – see item 4.3 in the on-table items package for City staff’s report to Council and the public engagement summary. 

The provisional budget approval includes strategic and core service enhancements to meet current needs. Council deliberations will continue as needed in 2025, with final approval of the budget to take place in April 2025.  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.