Homeowners in Vancouver could see their property taxes rise by almost eight per cent this year.

The increase is despite the city identifying savings of more than $16 million, including almost $7 million from a hiring freeze put in place at the beginning of last month.

The total tax increase to maintain existing services is 5.7 per cent.

When combined with a property tax shift of one per cent from business to residential, it would see residential rates rise by 7.8 per cent and business rates by 3.8 per cent.

According to the 2009 interim budget estimates released Thursday, Vancouver’s development sector has been significantly impacted by the global economic downturn.


• In the past three months, revenue projections from development have fallen by $12 million, a drop of roughly 50 per cent.