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Victoria staff preview 9.3% preliminary levy increase; council weighs comp plan and transit subsidy impacts
Summary
City staff told council the preliminary 2026 levy projection is about a 9.3% increase, driven in part by debt service for a new fire station and rising benefits; councilors discussed a $250,000, three‑year comprehensive plan budget, the cost of Southwest Transit prime rides, and new‑home permit projections that will offset some levy pressure.
City of Victoria staff on Tuesday presented preliminary 2026 budget figures that show a projected 9.3% increase in the city levy, driven by a mix of rising personnel costs, benefit estimates and debt service for a new fire station.
Staff said taxes and franchise fees account for roughly 85% of the city’s $9.3 million projected revenues and that debt service for the new fire station will add about $1.44 million in 2026. Staff also reported an estimated 5% rise in median home value and noted the city is budgeting 144 new‑home permits for 2026 (compared with 205 in 2024). City staff estimated approximately $118 million in new construction valuation will generate about $383,000 in new property tax revenue next year, offsetting part of the levy increase but leaving roughly $452,000 to be distributed across existing taxpayers under the current projection.
On the comprehensive plan, councilors asked whether the proposed 2050 plan budget—$250,000 spread over three years—was comparable to previous work. Staff said the 2040 plan cost “roughly $200,000” over three years and warned that cutting consultant engagement to save money would reduce community and property‑owner outreach and shift technical compliance tasks onto a small staff team.
Staff also flagged rising transit subsidy costs. The city currently subsidizes certain Southwest Transit on‑demand rides at about $12 per trip while staff estimated the prime on‑demand service costs roughly $30 per ride to operate. That gap, staff said, creates pressure on the city’s transit subsidy line and will likely prompt a future policy discussion.
Council members asked staff to continue refinement of the figures as max‑tax levy numbers become available later in the year; staff noted final benefit quotes and fiscal‑disparity calculations typically arrive after the preliminary workshop and will affect final numbers.
The council gave direction to staff to return with refined options and data for upcoming workshops, including benchmarking comparisons with similar cities, before finalizing any levy or program decisions.
