The Village of Sayward is confronting a projected 42 per cent property tax increase for 2026, driven by a severe budget shortfall and near-total depletion of its financial reserves. As of March 2026, the village holds less than $2 million in total assets, the lowest of any municipality in British Columbia.
Why the Tax Hike is Necessary
- Exhausted Reserves: Over the past five years, the village has relied on accumulated surpluses to cover annual deficits of roughly $100,000. With these funds now depleted, property taxes are the only remaining option to fund basic operations.
- High Legal Costs: Internal council disputes and lawsuits cost the village $302,870 in 2025 alone, nearly 20 per cent of its total revenue.
- Shrinking Revenue Base: A decline in commercial and industrial properties has left about 350 residents carrying the bulk of the tax burden.
- Reduced Support: Provincial “Small Community” grants have steadily decreased, while the village reports insufficient assistance from regional authorities.
Potential Measures to Mitigate the Increase
Village staff have already reduced the proposed hike from 50 per cent to 42 per cent through initial cost-cutting. Additional measures under consideration include:
- Municipal Dissolution: The grassroots Sayward Taxpayers Alliance has petitioned the B.C. Ministry of Municipal Affairs to dissolve the village. If approved, governance would shift to the Strathcona Regional District, potentially lowering administrative costs and providing more stable oversight.
- Service Cuts: The village has already closed the Kelsey Recreation Centre and canceled several community programs, saving $175,000–$200,000 annually. Further reductions to parks, public works, and other non-essential services may be needed.
- Governance Stabilization: Ending ongoing legal disputes among council members could immediately eliminate $300,000+ in annual legal fees, a sum exceeding the village’s entire roads and public works budget.
- Forensic Audit: Some council members are calling for an audit to identify financial mismanagement and opportunities for efficiency.
- Provincial Intervention: Sayward remains under provincial advisory, with council members hoping the October 2026 municipal election will bring a “like-minded” council capable of stabilizing finances.
The coming months will be critical as Sayward grapples with the dual pressures of fiscal shortfalls and governance instability, while residents face one of the steepest property tax hikes in the province.
