Municipal Finance - Funding Gaps

Harrison does not have a tax rate problem.
It has a tax base problem.

When residential growth outpaces commercial growth, the result is predictable: residents pay more every year, even when services don’t improve.

This section outlines the structural issues and the fixes that actually work.

Source Documents

(links to budgets, financial plans, tax rate bylaws, assessments, etc.)

Recommended reading:
A Sustainable Fix for Harrison’s Broken Tax Structure

1. Rebuild and Expand the Commercial Tax Base

Goal: Increase commercial assessed value so businesses carry a fair share of municipal costs again.

How

• Encourage true mixed-use buildings (commercial at street level, residential above)

• Protect existing commercial land from being rezoned to residential

• Recruit year-round businesses, not seasonal pop-ups

• Incentivize commercial improvements that increase assessed value

Why it matters
Every additional dollar of commercial assessment reduces pressure on homeowners.

2. Strengthen Year-Round Economic Activity

Harrison’s economy is heavily seasonal. That creates unstable revenues and budget stress.

Actions

• Support businesses that operate 12 months a year

• Develop shoulder-season events and partnerships

• Reduce permitting delays that deter investment

Year-round business = year-round tax stability.

3. Stop Residential Creep Onto Commercial Land

Housing replacing storefronts shrinks the tax base and increases residential burden.

Needed rules

• No rezonings that convert commercial land into residential-only use

• Protect key corridors (Esplanade, Hot Springs Road, resort area) as business-first zones

• Require meaningful commercial square footage in mixed-use projects

4. Adopt Long-Term Infrastructure Planning (10–20 Years)

Reactive planning leads to sudden hikes and emergency funding.

A real plan should include:

• Road repaving schedules with funded reserves

• Water and sewer replacement timelines and costs

• Flood protection and dike upgrades with realistic budgets

• Reserve targets for utilities, equipment, and facilities

Predictable planning leads to predictable taxes.

5. Align Staffing Growth With the Tax Base

Expanding government without expanding the tax base increases long-term pressure.

Principle

• Staffing growth should track population, service demand, and economic capacity

• New departments or initiatives should follow tax base growth - not precede it

6. Build Transparency Into Budgeting

Residents should not face double-digit increases without full information.

Minimum expectations

• Public release of financial, water, sewer, and asset-management reports before votes

• Clear justification for each increase

• Comparisons with similar BC municipalities

People will support what they can see.
They will not support blind increases.

7. Modernize Harrison’s Economic Vision

Without a clear strategy, decisions drift and opportunities are missed.

A modern vision should:

• Strengthen tourism without relying entirely on it

• Attract professional services, health services, food, retail, and trades

• Establish a coherent commercial district identity

• Attract entrepreneurs - not just residential developers

Bottom Line

Stable taxes require:

• A stronger commercial sector

• Long-term infrastructure planning

• Protection of remaining business lands

• Transparent budgeting

Continue growing housing without growing business, and residents will keep paying more — every year.

Disclaimer

Any analysis presented here is based on publicly available records and decisions, several of which predate the current Council. The purpose is to document process and structural outcomes, not to attribute intent or motive to individuals.