A double-digit tax hike might be needed next year just to maintain existing bus service in Greater Victoria, B.C. Transit says.

But some transit commissioners say overburdened homeowners can’t afford the projected increase and either the province will have to agree to increase the gas-tax levy or cuts will have to be made.

article continues below

“I’ve said, for the record, I will not be supporting double-digit tax increases,” said Saanich Mayor Frank Leonard, who sits on the Victoria Regional Transit Commission.

But that’s exactly what’s forecast by B.C. Transit staff for next year.

Capital region homeowners pay an average $130.50 a year in property taxes for transit, after an 8.3 per cent increase — about $10 per home — was approved in February.

Even with no increase in service, B.C. Transit predicts the need for a transit property tax increase of 12.6 per cent (an average of $16.50 per household) in 2014-15. That would be followed by a 3.9 per cent increase ($5.80 per household) in 2015-16 and 7.2 per cent ($10.95 per household) in 2016-17 on stand-pat budgets.

Transit Commission chairwoman Susan Brice said the additional revenue is needed to cover items such as fleet replacement, major facilities maintenance, information technology, facility replacements, installation of new bus stops, University of Victoria exchange improvements and Douglas Street bus lanes.

But Leonard said those figures don’t include $65 million in capital projects, such as building a needed third operating and maintenance yard, and upgrading the Glanford yard.

Brice and Victoria Mayor Dean Fortin also say they have no appetite for double-digit tax increases. They suggest approaching the province about approving an increase in the 3.5-cents-a-litre gas tax levy already paid at the pump by capital region motorists for transit.

“If you do a one-penny-a-litre gas-tax increase, you raise $3.5 million,” Fortin said. “That one cent gives you 10 times the amount of return [of the property tax levy] and that’s how we’ll avoid property tax increases.”

But Leonard said he doesn’t favour trading one tax hike for another. He doubts the province would show much interest in allowing an increase without voter approval through a referendum.

“I don’t know how the voters would vote on additional gas taxes. I don’t see that as a salvation,” Leonard said.

B.C. Transit is a Crown corporation that contracts bus services to dozens of communities and regional transit systems, including Greater Victoria. Leonard believes if the region were given local control of transit, cost savings could be found.

“I don’t know why the provincial government still wants to have a Crown corporation running buses up and down our streets. I think we should have local control and shake this thing down. Bring it in-house and let’s be accountable and responsible for the service and the expenditures,” Leonard said.

But Brice said B.C. Transit operations compare favourably with other transit systems across Canada. She sees no problem going to a referendum for approval to raise the gas tax.

bcleverley@timescolonist.com