Sooke proposes 15% budget increase in the face of rising service costs

The District of Sooke has a budget challenge for 2025 in a proposed increase of nearly $2M. The tax increase translates to an average household rise of about $20 per month based on an average home value of $770K per BC Assessments.

At the March 10 meeting, Sooke council directed staff to budget for a tax increase no higher than 15.29%.

The core cost drivers come from ongoing capital projects and asset management, and several key services including the RCMP contract and the E-Comm 911 dispatch service. 

“It’s a bitter pill to swallow for a community that’s been used to much lower increases,” Coun. Tony St. Pierre said, “but at the same time we know that we need the roads and people do need those services.”

Sooke’s preliminary budget increase includes investments in emergency services and infrastructure: 

• 246,487 or 2% increase for Asset Management to ensure the District can maintain and replace infrastructure over the long term

• $951,681 or 7.72% increase for policing, including E-Comm—the new costs for emergency dispatch services, prorated for 3 quarters (April to December)

• $512,286 or 4.16% non-discretionary increases which include items such as municipal by-election, licensing fees, insurance, and staffing obligations:contract and committed net new positions such as Executive Office Coordinator, Firefighter, Part-time Bylaw Officer previously funded by COVID Reserves), etc.

• $266,947 or 2.17% discretionary increases, which includes fire operating expenses, parks operating expenses, and certain staffing  considerations (Firefighter, Parks Labourer, Auxiliary Senior Financial Accountant hours, Auxiliary Clerk hours)

Asset management and capital projects

The proposed increase of $246,487 (2%) to fund asset management includes maintaining infrastructure such as roads, water systems, and public buildings. As Sooke’s population continues to grow, the need to invest in long-term infrastructure becomes more pressing. 

From 2016 to 2021 the population of Sooke increased by 16%. A new Stats Can census will happen soon, but current estimates put Sooke’s population on course to reach 17K. The district's capital projects, which include road construction, park developments, and municipal building renovations, are also putting pressure on the budget.

Sooke is working to finance $41M in debt servicing for multiple capital projects, including critical infrastructure such as the Throup Phillips Corridor and upgrades to local parks. The district is facing a difficult balancing act: maintaining or improving these essential services while managing a limited tax base and avoiding further reliance on debt.

Staff presented a year-by-year schedule of capital projects that include:

• Throup Phillips (2025)

• Charters Corridor and HW 14 intersection (2026)

• construction for Sunriver AT, Ella Road and Otter Point AT (2027)

• the Throup Connector and Phillips Corridor (2028 and 2029).

Major Sooke parks projects already on the books include:

• Demaniel Creek Crossing Bridge and Ravens Ridge Sportbox (2025)

• Municipal Hall renovation and Fire Hall update (2026)

• Broom Hill Playground (2027)

• Prestige Pier and Boat launch (2029).

In response to growing concerns about rising future taxes, a 2% tax increase for asset management reserves is planned for the following years, ensuring that Sooke can continue to maintain its infrastructure without falling behind. The budget also anticipates a decline in tax increases over the next few years, with rates projected to stabilize at around 3.37% by 2029.

Use of reserves weighed

Staff explained that asset management reserves can pay off debts or support grants but currently those funds are coming from Development Cost Charges and cash in lieu. 

Some confusion arose during the meeting around whether the municipality would qualify for future grants if it no longer had those reserves. 

“Most grants have a district contribution piece. If there are funds, instead of using taxpayer-supported funding some of that can be funded with AMF at 2% for 30 years—which council already approved,” said Gray.

St Pierre suggested he would tell residents who may want to know why they are not using reserves to reduce taxes that “having access to reserves means council can leverage them against [provincial] grants, so we don’t have to be or pass on costs as tax burden for capital projects.”

RCMP contract cost rises $700K

One of the largest contributors to the proposed tax hike is the RCMP contract increase, which is set to rise by $696,754, representing a 5.65% increase in overall costs. 

Because the municipality’s population is now greater than 15K, the province no longer provides support to investigations that would otherwise fall under a major crime section as it has done in the past. 

In his presentation to council, RCMP Staff Sgt. Greg Wilcox suggested he’d like to see a Major Crime Section in Sooke—something other medium-sized local munis already have.

He said he could have a specialized unit running within 6 months, and asked for funding for the unit in this year’s budget. He also proposed adding some RCNP positions without necessarily filling them right away, as a way to begin staff expansion without paying for all of it in the current budget.

911 dispatch costs taking effect 

Another contentious cost burden comes from E-Comm, the 911 emergency dispatch service, which the province has mandated it, along with 10 other island municipalities, must begin paying for. At the core of the E-Comm issue is a funding transition that began in 2020, when the province spotting the costs for a few years but moving them to municipalities fully by 2027 and beginning the moves this year (which Westshore municipalities claim they were blindsided by and not properly consulted on).

Coun. Al Beddows raised concerns about the district’s lack of input on the E-Comm service’s cost structure, noting that Sooke has little control over how funds are allocated to emergency services and that local taxpayers are often left to foot the bill without adequate representation in decision-making processes.

Budget impact on residents

The proposed increase would bring the total amount of general municipal taxes to about $14.3 million, up from $12.3 million in 2024. Although this is a sharp increase, the council has argued that this rise is necessary to preserve the district’s ability to continue providing essential services. This includes maintaining the current levels of police services, emergency response, and infrastructure maintenance.

For residents, the increase means a higher tax bill, but it also reflects the rising cost of services needed to support Sooke’s growing population. According to financial staff, a 1% tax increase in Sooke generates roughly $123,000—a stark contrast to the larger municipalities like Saanich, where a 1% tax hike raises $1.75 million.

“The community’s priorities are clear: we need to fund public safety and essential services, and we need to maintain our infrastructure,” said Mayor Tait. “While no one enjoys a tax increase, we must look at the bigger picture and ensure Sooke’s long-term financial health.”

Looking ahead to balancing the budget

Sooke is also planning a referendum about the district's long-term borrowing needs. The results will be available by the end of 2025, giving residents the opportunity to voice their opinions on the district's financial strategies.

 The council will hold a Community Budget Open House on April 2 from 2:30 to 7:30 p.m. to allow residents to learn more about the budget and provide feedback. The budget’s first and second readings will take place this coming Monday March 24, with final adoption anticipated for April 7.

While the proposed budget represents a difficult pill for Sooke residents to swallow, council members have emphasized their case, their case that its importance of addressing these challenges now in order to avoid larger problems down the road. 

“This budget is lean, but it’s also necessary to ensure that we can continue to provide the services our community needs,” concluded Mayor Tait.

You can watch the full meeting here: