New $7.2 million grant doesn’t change Langley City’s tax increase

Langley City council considered cracking open its annual budget on Monday, in the wake of a provincial one-time grant of $7.2 million, but decided to stick with its 11.56 per cent tax increase.

Coun. Delaney Mack asked her fellow councillor to rescind third reading of the annual financial plan. That would have let the council consider rejigging the budget and potentially lowering property taxes by using some of the one-time provincial grant announced late last week.

“I feel that budget amendments are possible, and that we’ve been given an opportunity,” Mack said.

She suggested that while it was one-time funding, it could be used to offset borrowing. Mack pointed to a $15 million loan the City will take out as part of its infrastructure upgrades and SkyTrain preparedness work this year, which will cost an additional $15.2 million in interest payments over the next 20 years.

“This is free money,” Mack said. “I think there are a lot of economic pressures right now that are on our residents.”

“We should be using those funds to reduce our current budget proposal,” said Coun. Leith White.

But the other councillors were leery of using a one-off payment, however large, to reduce taxes or cut down on planned borrowing.

“The challenge with this $7.2 million funding is, if we use it to defray… any taxes, then we’re going to have the same situation again next year,” said Coun. Teri James.

READ MORE: Langley City, Township to split more than $31 million in provincial funds

Mayor Nathan Pachal said that the current budget was based on the oncoming SkyTrain line completion, scheduled for 2028, and the ongoing infrastructure deficit, which he said has come to a head for Langley City and other communities.

“We know that the longer we delay something, the more expensive it is,” Pachal said.

Coun. Paul Albrecht also spoke in favour of the budget.

“It’s not a comfortable thing to do, I think it’s a proper thing to do, to invest in our future,” he said.

The Langley City budget is one of a number in the Lower Mainland that are seeing higher than average property tax increases this year, as inflation and other demands cause municipal spending to go up.

Pachal and other councillors also expressed some concern over the fact that they haven’t yet seen any actual documents from the province about how they can spend the $7.2 million. So far, there’s just been a press release.

The council voted five-to-two against re-opening the budget, and passed the budget’s final reading. Councillors Mack and White were opposed to the final budget.