Gas prices, municipal vehicle fleet costs could impact next tax bill: CTF

METRO VANCOUVER (NEWS 1130) – High gas prices today could mean a bigger tax bill next year, according to the Canadian Taxpayers Federation (CTF), as the rising price at the pumps makes it more expensive for cities to fuel their vehicle fleets.

Several Metro Vancouver cities including Vancouver, Surrey, Burnaby, and Port Coquitlam negotiate fixed-price or bulk price contracts for fuel, including gasoline and diesel, in their annual budgets, however, Kris Sims with the CTF worries what happens when the contract runs out.

“If they negotiate a price for fleets when it comes to Municipalities, that’s probably good because it could insulate them a little bit from the fluctuating price of fuels, but keep in mind that when that price comes around for next year, that price will then go up,” Sims said. “At the end of the day, the taxpayer will always pay.”

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The City of Surrey says its budget does take into account fluctuating fuel costs, but if prices stay where they are now or keep rising, it could cost as much as $180,000 more for fuel costs this year compared to 2018.

While Vancouver says the recent increases have not impacted its fuel budget, it is aware of the impacts it can have on the public purse. It has already replaced 115 of its vehicles with electric models and converted garbage trucks to compressed natural gas. All non-emergency vehicles have also had technology installed to make sure drivers are being safe and efficient.

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Port Coquitlam expects its fuel costs to be 2.2 per cent higher this year than last year, according to Councillor Steve Darling.

“We plan for it to happen so we do put in a buffer zone to make sure we’re covering that cost,” Darling said. “This year will represent about a $53,000 increase from last year’s budget. So there is a small increase, but if there were major fluctuations, we do have other areas that we can use cash from to make sure we’re not impacting our citizens.”

Burnaby Mayor Mike Hurley says the city’s contracts will keep its costs steady this year, but he is aware the rising fuel cost could be an issue in the future.

“I’m sure that could change as we move forward,” he said, adding the city is looking at alternative fuels to help mitigate price fluctuations.

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