City of Duncan Approves Major Utility Rate Increases

Rising utility rates and a more general squeeze on Cowichan Valley tax payers have severe effects on Duncan residents.

With the city council approving major utility rate increases on November 18, Duncan residents are getting ready for growing expenses in 2025. The rises—8.2% for water, 9% for sewage, and 3% for waste and recycling—come at a time when more general tax policies in the Cowichan Valley already pinch household budgets. For many, this is yet more pressure on already meagre resources.

“This is about ensuring that our city can sustain itself and maintain critical infrastructure, not only about balancing a budget,” said Finance Director Crossman during the meeting. We do admit, though, that this has a big effect on locals, therefore making this a difficult choice.

The rate increases will add, on average, $150–$200 yearly to utility costs for companies and homeowners in Duncan. While some people find this rise minimal, it combines with other financial demands, including the recent tax increases of up to 19% in some regions of the Cowichan Valley Regional District (CVRD). Although detractors claimed it offered little respite for those suffering with inflation and stagnating salaries, a report last year stated the CVRD’s action was meant to fund green projects.

Local entrepreneur Amanda Reeves said she was annoyed: “It feels like a never-ending cycle of expenses.” First, utility expenses are rising; then, you are dealing with higher property taxes. One senses no end in sight.

For Duncan, a central service provider in the area, the weight is especially great. Although the city represents a small portion of the land mass of the Cowichan Valley, it acts as a centre of social, medical, and business activities. Critics have noted that regional funding methods do not fairly represent these obligations; therefore, Duncan is left to bear an excessive load of expenses.

Although the council authorized the increases unanimously, some voiced concerns about how they might affect neighbours. Emphasizing that postponing infrastructure projects will cause more major issues in the future, Councillor Bruce said the rises were “painful but essential.” He emphasized the importance of staying up to date. “We run the danger of suffering catastrophic failures later if we fail to invest now.”

Councillor Duncan asked whether operational efficiencies had been thoroughly investigated before turning to rate hikes. “Are we doing everything possible to minimize costs before raising rates? The taxpayers have every right to ask.” Duncan stated. “I’m not sure we’ve run through all those choices yet.”

Pointing to the city’s efforts to get grants for significant projects, Mayor Staples adopted a more conciliatory posture. We are not depending only on rate hikes. For projects like Station Street enhancements and Rotary Park riverbank restoration, we have obtained outside financing, Staples added. “We will keep looking for ways to lighten the load since every dollar counts.”

The rate increases by Duncan reflect larger financial difficulties in the Cowichan Valley. Recent CVRD decisions, including a weighted vote to hike taxes by up to 19%, have come under fire for putting long-term environmental projects ahead of resident immediate financial assistance. Tim McGonigle, Area Director, voiced concern about explaining these choices to voters as many in his neighbourhood make median earnings ranging from $35,000 to $41,600. “I will find it difficult to explain this to persons already struggling to make ends meet,” he remarked.

Meanwhile, the speculation tax has introduced yet another degree of complication. Duncan residents have complained about receiving provincial letters demanding yearly residency declarations in order to escape extra taxes. Critics contend that this approach unfairly affects residents, therefore adding to administrative difficulties and encouraging animosity. Commentator Richards, in a local editorial, “Feeling the squeeze yet,” noted in reference to non-compliance that failure could lead to automatic fines.

The larger picture is sacrificing today for tomorrow as Duncan citizens consider the most recent round of increases. Local debate still revolves mostly on long-term planning against immediate affordability. While detractors warn of the overall burden on citizens, supporters of infrastructure spending contend that investments now will prevent more costs tomorrow.

For Reeds, the reality is quite straightforward. “They keep talking about a bright future, but if we can’t afford the present, how are we supposed to get there?”

Regarding the fresh tax hikes, what do you believe? Tell us your opinions!