New BCBC report finds runaway municipal spending continues to accelerate, driving property taxes higher

Media Release

Jun 29

Written By BCBC

B.C. municipalities accumulated $6.5 billion in excess spending between 2010 and 2024; interactive tool lets residents compare every municipality

Full Report and Graphs: https://bit.ly/4evIIYa
B.C. Municipal Spending Tool: www.BCSpending.ca

Vancouver, B.C. — Just two days before property taxes are due for millions of British Columbians, a new report from the Business Council of British Columbia (BCBC) finds that runaway growth in municipal spending continues to push property taxes higher across the province, raising questions about whether taxpayers are getting good value for their money.

The report, The Runaway Train is Accelerating: An Updated Look at Growth in B.C. Municipal Spending, estimates that B.C. municipalities accumulated approximately$6.5 billion in excess spending—defined as spending beyond what would have been required simply to keep pace with inflation and population growth—between 2010 and 2024.

During that period, municipal operating spending across B.C. increased by 94 per cent, compared to population growth of 28 per cent and inflation of 36 per cent. As a result, municipal property taxes on owner-occupied housing have climbed 110 per cent since 2010, nearly double the national average increase of 62 per cent.

To help British Columbians explore the findings, BCBC has launched the B.C. Municipal Spending Tool at BCSpending.ca. The interactive tool allows users to search any B.C. municipality and compare real operating spending growth with population growth between 2010 and 2024.

The report also examines Metro Vancouver, finding that operating spending increased 97 per cent between 2010 and 2024—well above inflation and regional population growth. While cumulative excess spending in Metro Vancouver was more modest over the full period, nearly all of it occurred during the past three years, raising questions about governance, accountability and whether taxpayers are receiving good value for their tax dollars.

"Last year we warned that municipal spending was beginning to resemble a runaway train," said David Williams, Vice President of Economics at the Business Council of British Columbia. "This year's report shows the train hasn't slowed down. Instead, it's speeding up, and British Columbians are paying the price through property tax increases that continue to outpace inflation and nearly every other province in Canada."

Key findings include:

Municipal property taxes on owner-occupied housing have increased 110% since 2010, compared to 62% nationally.

Municipal operating spending increased 94% between 2010 and 2024, compared to 36% inflation and 28% population growth.

135 of 153 B.C. municipalities (88%) increased real operating spending faster than population growth.

Municipalities accumulated an estimated $6.5 billion, or $1,280 per resident, in excess spending between 2010 and 2024.

Metro Vancouver's operating spending increased 97% between 2010 and 2024, compared to 31% regional population growth and 36% inflation.

"Population growth and inflation naturally increase the cost of delivering municipal services," said Jairo Yunis, Director of Policy at the Business Council of British Columbia and author of the report. "The concern is that, in most municipalities, spending has consistently grown well beyond those pressures. Unless residents are receiving significantly better services, it's reasonable to ask whether local governments are delivering those services as efficiently as they could."

To help improve fiscal discipline while protecting essential municipal services, the report recommends that governments: