Budget Challenges: Where we stand and why

This year, after looking at the preliminary 2010 budget estimates, the City faced a funding shortfall of $61.7 million, which would equal a property tax increase of 11.2 per cent. This shortfall is due to a variety of factors, including the economic decline faced around the world. The main factors include:

• Staff salary increases from previously negotiated contracts
• New or expanded services or programs approved in previous years (additional police officers,  childcare and mental health support, green grants fund,)
• Ongoing operating costs for previously approved capital projects (#1 Kingsway civic centre, police training centre, new community centres at Hillcrest and Southeast False Creek, office space)
• A continuing level of reduced development-related revenue (50% below normal levels)
• Increases in charges from outside agencies (regional sewer costs, emergency dispatch services, Vancouver Economic Development Commission, operations of city jail)

2010 Operating Budget: Preliminary Estimates (October 20, 2009)

How we fund the budget

The operating budget is funded by property taxes, utility fees, user fees and other revenues (which include Provincial revenue sharing), and internal reserves/funds. In 2009, property taxes accounted for 62 per cent of the total revenue.

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