Niagara Falls Mayor Jim Diodati has released his proposed 2026 tax levy supported budget.
Diodati is proposing a lower tax increase than what city staff had originally proposed.
Staff presented Diodati with a recommendation that the operating tax levy be increased by 4.48 per cent, in addition to a three per cent increase in the capital levy.
Diodati has watered that down, with the mayor proposing an operating levy increase of 2.93 per cent and a capital levy increase of two per cent.
Taken together, should Niagara Falls City Council approve Diodati’s proposed budget, that would represent a 4.93 per cent tax increase for property owners.
That would mean an extra $2.84 million in additional tax revenue for Niagara Falls’ operating budget, while adding an extra $1.94 million to the capital budget.
The city’s average household is assessed at a $280,000, as assessment values have been frozen by the province since 2016.
The combined increase triggered by Diodati’s operating tax levy and capital tax levy increases will be $86.17 for the average household.
According to staff, the budget is increasing spending in three key areas.
First, software costs are increasing, as the city plans to invest in increased cyber security measures to protect the city from cyber attacks. Staff say software costs are increasing at a rate faster than the rate of inflation.
The budgeted increase for software costs is $864,000.
Second, the city is making a deliberate effort to spend more on sidewalk repair materials and contracted services “by investing in repairs to eliminate trip and fall hazards caused by ongoing natural challenges, such as tree root and frost.”
The budgeted increase for sidewalk repair is $270,000.
Finally, the city is increasing funding for storm sewer maintenance, including increased catch basin cleaning, flushing and CCTV inspection. Cleaning will increase form once every 15 years to once every five years to minimize flooding and property damage.
The budgeted increase for storm water maintenance is $276,000.
Diodati’s proposed budget will be presented by finance staff to Council on Jan. 27.
Under Ontario’s Strong Mayor powers, Council has a 30-day period to review Diodati’s budget and present proposed amendments.
Should any amendments be passed, Diodati has a 10-day period to veto them.
Should Diodati choose to veto any amendments, Council would then have a 15-day period to try to override his veto, which would require a two-thirds majority.
Jay Goldberg is the Canadian Affairs Manager at the Consumer Choice Center. He previously served as the Ontario Director at the Canadian Taxpayers Federation and a policy fellow at the Munk School of Public Policy and Global Affairs. Jay holds a Ph.D. in Political Science from the University of Toronto.
