NO TAXPAYER APPROVAL NEEDED - BORROW UP TO $185 MILLION - 15% TAX HIKE

 

Wake-Up Call: Nanaimo’s Debt Trap

Council is considering changes that would allow up to $185M in long-term borrowing without voter approval. On paper this may be 'legal,' but for taxpayers it represents the equivalent of a 15% property tax hike — locked in for 20–30 years.

What Changed

• Old Rule: Long-term borrowing always required elector approval.
• New Rule: Up to 10% of revenues can now be borrowed without a vote.
• For Nanaimo: $15.5M/year in new debt payments = ~$185M in borrowing.

Household Impact

Every $1M in City spending ≈ 1% property tax increase. $15.5M in new annual payments = 15–16% tax increase. And these payments last for decades.

The Flaw

The Province’s 'sustainable revenues' test measures City Hall’s cashflow, not what households can afford. Revenues already fund existing services — new debt means higher taxes or service cuts.

Bigger Picture

From Ottawa to Victoria to City Hall, debt is the reflex answer while inflation, housing, and interest burdens rise. Taxpayers are the backstop at every level.

Even the Best Paid Struggle

The BCGEU, representing some of BC’s best-paid workers, is striking for an 8.5% raise to 'keep up.' If they can’t sustain the cost of living, how can average taxpayers absorb a 15% permanent tax hike for City debt?

Call to Action

• Retain voter approval for long-term borrowing.
• Demand clear affordability studies.
• Balance ambition with fiscal restraint.

Debt ceilings are not affordability tests. Taxpayers deserve transparency, accountability, and consent.

FOR A MORE INDEPTH REPORT READ THIS VOICE OF NANAIMO NEWS MAGAZINE ARTICLE