Coast municipalities part of government spending 'runaway train': B.C. Business Council

A BCBC report tracks 2010 to 2024 operating expenditure data for B.C. municipalities and shows that inflation-adjusted spending grew faster than municipal population in 135 out of 153 B.C. municipalities, including Sechelt and Gibsons.

Escalating spending by B.C. local governments, the focus of a B.C. Business Council's (BCBC) recently updated report shows Gibsons and Sechelt aboard the “runaway train” that is forcing property taxes higher. The document entitled “The Runaway Train is Accelerating: Shaping B.C.’s Future Together A Closer Look at the Exceptional Growth in B.C. Municipal Spending," shows operational spending growth in each outpaced population growth, even with inflation factored in. BCBC, a non-partisan organization including business, government and community leaders focused on promoting economic prosperity and responsible public policy, says 88 per cent of this province’s municipalities are in the same situation.

The Council says that is adding to an affordability crisis not only for owners of real estate, but for those who rent, as most rental rates are set to recover expenses, including property taxes. The updated policy perspectives report authored by BCBC’s David Williams and Jairo Yunis begins by stating “the problem is getting worse, not better. Excess spending has risen with every electoral cycle and is driving a corresponding increase in property tax inflation”.

Speaking with Coast Reporter, Yunis said the situation in B.C.”is the most dire in the country” and that property tax hikes here are tracking at “over double” the rate seen elsewhere in the country. Another concern he identified is that property taxes are escalating at the same time that B.C. residents are facing “serious affordability challenges” for daily life basics like groceries, fuel and housing. Spending out-paces growth in both local municipalities The report tracks 2010 to 2024 operating expenditure data for B.C. municipalities and shows that inflation-adjusted spending grew faster than municipal population in 135 out of 153 B.C. municipalities, including Sechelt and Gibsons.

It reveals District of Sechelt’s annual operational spending increased at 2.5 per cent annually while population growth was 1.5 per cent. The costs of operations In Gibsons, tracked 4.1 per cent higher each year while the number of people living in the community and receiving municipal services went up by a single per cent. Municipal “scope creep” is contributing to operational spending gluts, according to Yunis.

While the portion of those government’s overall day to day spending on “health, social services and Housing”, which are provincial responsibilities, escalade by 74 per cent, according to the updated report. Spending on municipal core services also grew at frenzied pacing. Winning the second place ribbon for exponential cost increases were municipal development services departments, where growth in the outflow of funds was measured at 39 per cent during the period reviewed in the report.

General government, protective services and sewer services spending each increased by over 15 per cent. The original BCBC report was released last fall. Yunis said that neither Gibson nor Sechelt reached out to BCBC to discuss its findings or recommendations.

He noted that the City of Vancouver did. Discussions between his organization and the City were a precursor to that municipality’s 2026 budget, which had a “zero means zero” theme for property taxation adjustments. In Yunis’ opinion, local governments in smaller communities like Gibsons and Sechelt face advantages and challenges when looking at reigning in spending.

While economies of scale may mean they face higher per capita costs for certain supplies, smaller jurisdictions can be “more nimble” when faced with making changes. “It’s all about setting priorities and spending on the basic things that are needed rather than things that may be nice to have,” he remarked. While the report focuses on municipal operating expense reporting, it also delves into “excess spending” at one B.C. regional district; Metro Vancouver.

Last September, the Canadian Federation of Independent Business did a similar study on the spending habits of B.C. regional districts. In that, our Sunshine Council Regional District (SCRD) was ranked “least efficient” and “the most expensive regional districts for small businesses” when it came to how quickly its operational spending had risen. The report received criticism from SCRD chair Alton Toth.

He questioned the fairness of comparing regional districts to one another, as each has a unique range of services they provide and different challenges related to things like geography and population density. Whether that analysis was fair or not, the CFIB report was one factor that the Sunshine Coast Chamber of Commerce considered when it requested Coast local governments strike a committee to explore whether cost saving could be achieved through amalgamation of those entities or improved coordination of operations. That ask emerged in early 2026, but the proposal has all but disappeared from public discussion after being presented to Sechelt, Gibsons or the SCRD elected councils/board.

Asked about the BCBC study, Chamber spokesperson Arthur Cullinan stated, "The Chamber wants to be clear that staff at our local governments work hard and do good work within the structures they've been given. And to be fair, the report's benchmark has limits - the costs municipalities face, from policing contracts to insurance to construction, have risen faster than consumer inflation, and some spending growth reflects responsibilities the province has quietly pushed down to local governments “But the underlying trend is one our community can't ignore. The Coast has one of the oldest populations in BC, and the current model asks a shrinking base of residential taxpayers to carry a growing load.

That math doesn't work - not because anyone isn't trying, but because you can't tax the same homeowners more every year and call it a plan. If the status quo holds, things will get worse economically on the Coast. The answer is growing the tax base: making the Coast a place where businesses can start, invest, and expand, so that economic growth - not annual tax increases - pays for the services our community relies on.

We'd welcome the chance to work more with our local governments on exactly that." A potential local government election issue As July 2 was 2026’s property tax payment deadline and with October’s local government elections approaching, Yunis said June 29 was an opportune time to re-release the updated report. Plans for management of operational costs is a subject he says local residents may want to raise with candidates for their local Councils.

According to the report, a key question residents need to think about is are they “enjoying an exceptional improvement in municipal service quality, or are municipalities simply becoming less efficient in delivering core services”. Finding out how different candidates propose to address operational spending concerns, is something he plans to do personally. Coast Reporter contacted Gibsons and Sechelt for comment on the report.

Their input is scheduled to be the subject of a report in our July 17 issue.