FAQs
What is the difference between a budget and a financial plan?
Each year the District develops an annual budget outlining how tax dollars are spent and which services are provided to our residents and community. We include a five-year balanced financial plan to guide our strategic investments and departmental service plans.
What's the different between an operating budget and a capital budget?
The operating budget outlines how property taxes and user fees are used to deliver services to our residents and the community. The capital budget outlines how reserve funds are used to replace existing assets and improve amenities such as parks and trails, roads, underground utilities, municipal buildings and transportation networks.
Each year the District develops both a five-year operating budget and a five-year capital plan.
What is the tax rate?
The tax rate is the amount of property tax payable per $1,000 of assessed value of a property. The tax rate is for municipal taxes only and is set by Council during budget deliberations for each property class.
What is the percentage increase in taxes?
The percentage increase in property taxes paid from one year to the next is set by Council and applies to the average residential property owner. The percentage increase in taxes is for municipal taxes only and does not reflect any increase as a result of other government taxes such as school taxes.
What is the infrastructure replacement gap?
The infrastructure replacement gap is the difference between the investment needed to replace existing infrastructure and the funding available to address that need.
To use the previous analogy, it is the difference between the $10K you know you will need for a new roof in 10 years, and the $3K you have already saved for this reno project.
What is “infrastructure”?
Infrastructure is the system of public works. In North Saanich, this includes systems dedicated to the collection, treatment, storage and distribution of potable water; sewer systems; local transportation infrastructure like roads, sidewalks, bike lanes, and traffic signals; and District of North Saanich facilities and buildings, including Municipal Hall.
How often does infrastructure need replacing?
It depends. But no infrastructure lasts forever. As a fiscally responsible organization, the District of North Saanich keeps a close eye on infrastructure and identifies things that will require replacement well before they reach a state of critical failure.
It is akin to a homeowner knowing that their roof is doing just fine now, but is showing some signs of wear and will require replacement in the next ten years.
Why is the District considering closing the infrastructure replacement gap?
If the District closes the gap now, it means we will need to borrow less money in the future. Borrowing in the future is a valid and common approach for local governments, but the District has historically aimed to save now for future needs.
In doing so, the District has strategically reduced the gap in small increments, to protect residents from a sudden and significant increase in taxation.
To return to the roof metaphor, it is like deciding to save a little more money now for roof repairs that will be inevitable later. You could spend your savings on a luxurious vacation this summer and borrow $7K from the bank in 10 years… or you could close the gap by taking a more modest vacation and putting more money into your household emergency savings. Taking this approach, you would need to borrow less money (or none at all) from the bank in 10 years for your new roof.
Is there a correlation between my property assessment and my property tax rate?
Not directly. It’s a common misconception that if your BC Assessment notice states your home’s property assessment has gone up 20%, your property taxes will also go up 20%.
Municipal budgets are developed based on the cost of delivering services to residents, not on property assessments.
The amount of property tax you owe is only influenced by property assessments in one regard: how your residence’s assessed value relates to other assessed values in North Saanich. For example, properties on the higher end of assessments will pay more in taxes than properties on the lower end.
Do higher assessed values mean more money for the District?
No. The District of North Saanich is not in the business of making money or earning a profit. The District goes through an extensive budgeting process each year to determine the amount of funding required to operate the municipality and provide services to its residents. Tax rates are then adjusted to collect only the revenue needed from the assessment base.