The Canadian Federation of Independent Business has released its 9th annual report on municipal spending, and it shows 97% of B.C.'s municipal governments have increased their operating spending at an unsustainable pace since 2004.
BC’s major centres, Vancouver and Victoria, both increased their operating spending by 23 per cent from 2004 – 2014 after adjusting for inflation and population growth.
The report found only 5 out of the 152 municipalities examined in BC kept operating spending in line with inflation and population growth over the past decade. And none of the 20 largest municipalities made the list.
Aaron Aerts (Arts) is an Economist, Canadian Federation of Independent Businesses says Victoria improved slightly over last year but still doesn't have anything to brag about:
" And in terms of the overall rank it's improved from the 2015 report from 93 overall and is now 69-- but that's still right in the middle of the pack. What we're seeing in Victoria is significantly above the per person spending of the Vancouver Island group."
Aerts says had municipalities kept their operating spending at the rate of inflation plus population growth over the past ten years, a BC family of four could have saved, on average, around $7,400 in municipal taxes. He says spending growth of this magnitude is simply unsustainable.
"Small businesss, and I think most citizens would be more than happy with a municipality increasing their expenditure to match price increases and population growth. But what we're seeing is something far outside of those 2 factors. And what we're seeing is that that's having a direct impact on the property taxes that most people are paying. And it's definitely worrying."
In 2004, BC residents spent on average $889 dollars for the operations of their local government. In 2014, that increased to $1,178 per person when adjusted to inflation, representing a 33 per cent increase in operating spending per capita in BC.
Aerts was speaking to CFAX 1070's Terry Moore.