B.C. municipal operating spending outpaced population and inflation, report says

Municipal operating spending in British Columbia nearly doubled from 2010 to 2024 and grew faster than population and inflation, according to a report by the Business Council of British Columbia.

The report examined 153 municipal governments and found their combined operating spending rose from about $6.3 billion to $12.3 billion, a 94-per-cent increase. Their population grew 28 per cent and inflation was about 36 per cent over the same period. Using population growth and inflation as a benchmark, BCBC estimated $6.5 billion in cumulative spending above that measure, or about $1,280 per person covered by the analysis.

BCBC defines the difference as “excess spending,” but the calculation does not establish that the spending was wasteful or unnecessary. Municipalities may have expanded services, improved service levels or faced local costs not reflected in the broad benchmark. The organization says governments should show whether above-benchmark spending has produced measurable improvements or responds to specific local pressures.

Public safety represented the largest dollar amount above the benchmark, at about $2.7 billion, followed by parks, recreation and culture at $1.2 billion. On an inflation-adjusted per-person basis, health, social services and housing spending rose the fastest, increasing 74 per cent. BCBC said such spending may point to provincial responsibilities being downloaded, expanded municipal roles or overlapping services.

The report linked rising operating costs with property taxes and special charges on owner-occupied B.C. homes, which it said climbed 110 per cent from January 2010 to May 2026, compared with 62 per cent nationally and 46 per cent inflation in B.C. It recommends limiting operating-budget growth to population and inflation unless elected officials can explain higher growth, and calls for expanded municipal oversight by the B.C. Auditor General or a restored local-government auditor.

In Metro Vancouver, the report found annual inflation-adjusted spending growth exceeded population growth in Vancouver, Surrey, Burnaby, Richmond and City of Coquitlam. The Metro Vancouver Regional District’s operating spending rose from about $455 million in 2010 to nearly $896 million in 2024. The regional district says households will pay an average $897 this year for its services and utilities.