Homeowners in Metro Vancouver are expected to face a record property tax increase next year after the regional government’s board approved the 2025 budget on Friday.

This year, the average household paid $698 for essential utilities. Next year, the same household will pay $875, an increase of 25.3 percent on average.

Much of the increase — $98, or 14 percent — is intended to account for the start of payments for the nearly $4 billion North Shore Wastewater Treatment Plant.

The wastewater treatment plant project has faced notable cost overruns and delays, some only made public earlier this year.

Metro Vancouver is also looking to increase its overall business tax bill, representing a 9.9 per cent increase for the average household in 2025, on top of wastewater treatment plant costs.

Some regions are facing more severe increases than others, notably taxpayers in the three municipalities on the North Shore. For residents of the “North Shore Sewer Zone,” the property tax bill will rise from $813 this year to $1,147 in 2025, a 41 percent increase.

Residents in the “Fraser Cleanup Zone,” such as Delta, Surrey and Langley, will see their bill rise from $650 to $786 in 2025, an increase of 20.9 per cent.

The council also approved the regional government’s five-year plan, which foresees an average annual tax increase of 5% between 2026 and 2029.

North Shore taxpayers will bear the brunt of cost overruns

The board voted earlier this year to reject cost sharing and maintain existing infrastructure payment models that allow sub-regions to pay for their respective infrastructure. This means that the municipalities of the North Shore will bear the brunt. A cost overrun of $2.8 billion on the treatment plant still under construction.

The average North Shore household is expected to have an annual tax bill of $1,792 in 2029, nearly double the $903 bill expected to arrive at the door of the average household south of the Fraser.

Tax increases facing North Shore residents have finally led North Vancouver City Mayor Linda Buchanan and North Vancouver District Councilor Lisa Muri to call for an “11th hour break » in the budget approval process. They wanted a target increase of only five to seven percent on top of treatment plant costs. Their plan: identify further cost reductions in each department.

“We are spending way beyond our means,” Buchanen said.

She said the 9.9 percent tax hike in 2025 is “too much for our families and businesses to pay – and it still doesn’t include the wastewater treatment plant.”

Muri expressed frustration with the budget consultation process, saying that outside of closed-door meetings it was difficult to get basic information to share with the public.

Ultimately, the council rejected the motions of the representatives of the North Shore.

$3/day tax rate still good value, Metro directors say

Former president Sav Dhaliwal said taxes in Metro Vancouver are still relatively low and a good deal for homeowners. The bill runs about $3 a day for major services, including water, sewer and regional parks.

Richmond Mayor Malcolm Brodie said that even if such a tax cut were achieved, it would only amount to about $20 per household per year. He said it wasn’t worth it.

Brodie noted that the budget task force reduced the initial tax increase estimate from 14 percent to 11 percent and ultimately to 9.9 percent after a final review.

The tax hikes come as steel and concrete inflation rates are in the double digits, well above overall inflation as measured by Canada’s Consumer Price Index. This justifies the increase, Dhaliwal said.

The regional government faces the dual task of building expensive new infrastructure while renewing existing pipelines, factories and reservoirs.

Brodie and Dhaliwal are among the two longest-serving members of the board that, after decades, left the regional government without enough money to fund the project. future costs of infrastructure upgrades and growth.

Infrastructure costs to be covered by the new housing levy and future taxes

Metro Vancouver is also set to significantly increase development fees for building new homes, to fund new infrastructure associated with a growing population.

“The majority of our budget is driven by capital expenditures,” Metro CEO Jerry Dobrovolny told the board during debate Friday.

Over the next five years, Metro Vancouver will spend $10.6 billion on wastewater treatment capital projects. Of this amount, $4 billion is linked to new demand for new housing.

To pay that bill, Metro is looking to borrow money that will eventually be repaid in the form of $5.8 billion in future taxes and $2.8 billion in development costs.

Metro’s operating expenses are also expected to rise sharply in the coming years, from $1.2 billion in 2024 to $2.2 billion in 2029. The biggest increase is in the region’s sewer services , where spending is expected to more than double to $1.2 billion by 2029.

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