A nine per cent property tax increase would be significantly more than last year’s 6.74 per cent increase. Pictured: Niagara-on-the-Lake City Council. Photo Credit: Town of Niagara-on-the-Lake.
Niagara-on-the-Lake taxpayers are facing a big property tax hike this year, although it’s now looking smaller than what city staff initially proposed.
When staff initially put forward their proposed budget for 2025, taxpayers were looking at a property tax increase of 14.4 per cent. Instead, councillors are now considering a nine per cent increase, still a hefty increase for taxpayers struggling with the cost of living.
This year’s projected nine per cent increase would be significantly higher than last year’s 6.74 per cent.
Councillors met for nearly four hours on Jan. 23 to discuss the operating budget. The budget committee will have to meet again to finalize the budget, although that date has not yet been scheduled.
With an average assessment value of $546,000, the average Niagara-on-the-Lake homeowner is staring down a $128.25 increase to the lower-tier portion of their property tax bill if the nine per cent property tax increase goes forward.
That doesn’t factor in the 9.6 per cent regional tax increase Niagara-on-the-Lake property owners are facing to the upper-tier portion of their property tax bills.
Niagara-on-the-Lake’s proposed nine per cent increase could be whittled down further at the next meeting.
Some of the new spending councillors chose to add to the budget at the Jan. 23 meeting has to do with cybersecurity. After recent incidents in Hamilton, many Niagara Region municipalities are upping their investment in cybersecurity.
Councillors agreed to spend $30,000 on upgrading the Town’s digital security and another $90,000 to hire a full-time IT staff member. Currently, there are only two full-time IT staff managing 150 computers and 154 mobile devices.
Councillors were also told Niagara-on-the-Lake ran a deficit in 2024, which technically municipalities are not allowed to do. However, the deficit is being paid for through taking some funds out of the Town’s $3.1-million parking reserve fund.
The Town’s 2024 deficit amounted to $280,440.
Staff say inflation is impacting the budget at a rate of 3.3 per cent, so a 3.3 per cent property tax increase is needed just to keep the Town’s services where they are. The rest of the proposed nine per cent increase would be caused by additional spending, mostly on new hires.
Councillor Wendy Cheropita expressed concern with a levy increase being so high.
“That makes me cringe a little bit,” Cheropita told her fellow councillors after learning the property tax increase is currently sitting at nine per cent.
Cheropita is still hoping to find ways to get the nine per cent number down. However, Cheropita did back down on the hiring freeze she proposed last year when it became clear the vast majority of Council wanted to add new positions, including in IT.
Councillors will meet again to finalize the budget, but again that date has not yet been set.
Jay Goldberg is the Ontario Director at the Canadian Taxpayers Federation. He previously served as 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.