The Town of Fort Erie is aiming to keep its property tax increase at 3.5 per cent for 2026.
A report came to Council regarding budget planning on Oct. 7. Councillor Darren Flagg added an amendment to that report to try to guide city staff in terms of the size of next year’s property tax increase.
The amendment was adopted by Council.
The amendment itself directed city staff to prepare a budget plan with a property tax increase limited to 3.5 per cent. It also allows staff to prepare an alternative budget plan with a higher property tax increase of no more than 4.25 per cent.
However, Flagg added that any property tax increase proposal of 4.25 per cent should be accompanied by a “strong business case.”
Last year, the Town’s portion of the residential tax increase was 4.95 per cent, so either of Flagg’s proposals would represent a lower increase compared to 2025.
The other impact on Fort Erie residents’ property tax bills will come from whatever rate of increase Niagara Region decides to adopt, likely late this fall or early next year.
The staff report indicated that a property tax increase of 8.75 per cent would be in store for Fort Erie residents if the report itself didn’t trigger any changes in the Town’s spending plans.
Fort Erie staff will now have to prepare spending restraint options for Council in order to try to hit the 3.5 per cent target.
“We need to show leadership to tighten our belts where we can,” said Flagg in proposing his amendment. “Council’s responsibility to those who have placed their trust in us is to do so.”
“I think we should try to reflect that,” Flagg added.
Mayor Wayne Redekop insisted that the discussions that he has already had with staff indicate they need to be focused on 3.5 per cent.
“There are opportunities where staff can reduce what had been anticipated last year,” said Redekop. “I would expect that staff will provide us with their advice with respect to what 3.5 per cent means and what the impacts will be.”
Councillor Ann-Marie Noyes asked whether the 3.5 per cent was just a target that Council will hope to meet.
Redekop noted that Council will ultimately establish the budget, but Council is simply giving staff direction in terms of what it would like staff to target.
Councillor Joan Christensen expressed concerns about Flagg’s amendment.
“I understand the need to be as prudent as possible,” Christensen said, “but I’d like to get some clarification about the upper end.”
“I’m concerned that we will box ourselves.”
Redekop again noted that these numbers put forward by Flagg are simply targets, and if Council isn’t satisfied with the options prepared by staff, and feel revenue is too limited, Council can make changes.
“We’re not gonna be boxing ourselves in, but what we are doing, in my view, is providing staff some direction,” said Redekop.
Council will begin its formal budget process next month, starting with the capital budget.
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.
