Vancouver Mayor Ken Sim speaks during a news conference in Vancouver, on Sept. 16.ETHAN CAIRNS/The Canadian Press
Vancouver Mayor Ken Sim wants to push city staff to shave millions off the city’s budget in an effort to cut a projected 5.5-per-cent property tax increase for residents, says a city councillor versed on talks surrounding Vancouver’s finances.
Mr. Sim has brought in two years of hefty increases, sparking anger from ratepayers, but he’s hoping city councillors will approve a motion Tuesday cutting $15-million from the budget in an effort to bring down the latest projected tax increase, said Mike Klassen, who is with Mr. Sim’s ABC party.
Mr. Sim is aiming for a 3.9-per-cent bump, Mr. Klassen said.
“We decided to work harder and find the savings where we could,” he said. “We had a real hard look at everything across the board. We have a very disciplined approach with this budget.”
Mr. Klassen was unable to provide specifics about how the city would take $15-million off its $2.355-billion budget.
The City Manager’s budget report presented last week suggested there is $18.7-million of available money that could be used to reduce taxes or reallocated to programs that weren’t funded in the draft budget.
That money would come from taking an additional $8.4-million dividend from the city’s property-endowment fund. The city already aims to take $21-million from that fund. As well, the city has generated $5-million more in tax revenue than it originally projected and $4.3-million more in investment income. Another $1-million could be achieved through efficiencies on capital projects, the manager’s report said.
Mr. Sim and his first-term ABC council have been heavily criticized for passing tax increases of 10.7 per cent in their first year and 7.5 in their second.
Mr. Klassen said the budget will ensure the police department is fully funded for the first time in years, with $453-million, or almost a fifth of the total budget, going there. That is the latest in a long line of increases. The police budget was $341-million in 2019, rising to $430-million by 2023.
City taxes generally account for about half of a Vancouver property owner’s tax bill, with taxes for schools, Metro Vancouver, TransLink and the province’s municipal-financing authority making up the rest.
Mr. Sim is also proposing that Vancouver explore the option of allowing bitcoin to be accepted for city payments and as part of city financial reserves.
The mayor’s motion includes an outline of the advantages of bitcoin and lists various countries, cities and states (El Salvador; Seoul, South Korea; a town in Switzerland; Pennsylvania) that accept bitcoin or are exploring the idea.
“Bitcoin has been recognized by many financial experts and analysts as a potential hedge against inflation and currency debasement and represents a viable store of value due its capped supply and growing adoption in the global economy,” says the mayor’s motion.
“Diversifying the City of Vancouver’s financial reserves and payment options to include Bitcoin would not only enhance the resilience of our city’s financial portfolio it would ultimately benefit the city’s taxpayers by preserving the value and purchasing power of precious tax dollars and other financial resources against the volatility of traditional currencies.”
Critics have pointed out that bitcoin is also extremely volatile.