Report projects 10 per cent hike for Waterloo region taxpayers next year

Regional councillors are using words like “alarming” and “staggering” to describe it.

In a report going to council, regional staff estimate a 10 per cent property tax increase will be needed in next year’s budget to maintain current service levels and continue spending on strategic priorities.

That doesn’t include policing, which accounts for the single priciest item in the region’s budget.

While the projection is just a starting point and councillors are optimistic they can bring the number down, they admit it will be a major challenge.

“[It’s] no doubt alarming and I think residents are concerned as well,” Coun. Michael Harris told CTV News. “We saw significant increases last year.”

The region raised property taxes by 4.56 per cent in 2022. This year they jumped by 8.5 per cent.

“Right now, it’s a staggering number on top of what was a large number last year and that’s concern,” Coun. Rob Deutschmann said.

WHAT'S BEHIND THE RISING COSTS?

The report blames inflation, increasing construction costs, and rising interest rates for the high projection.

The shortfall is also due in part to the loss of development charges, and what some on council say is the province not doing its share.

“Unfortunately we’re seeing more and more services that are being asked to be delivered and frankly paid for by the local taxpayer,” Harris said.

“We are getting hammered by the province that is downloading a lot of social services on us but are not providing us with any funding to carry that,” Deutschmann said.

WHAT CAN BE DONE?

The councillors say spending less on services is easier said than done, pointing to negative reaction to the decision this year to reduce spending on grass cutting along regional roads.

According to Deutschmann, it’s time the region looked at delaying some big ticket projects, not just cutting services.

“If you are going to fix a road every so many years, can you extend that out a little bit,” he said. “It’s like having a used car and using it for another year or two before you decide to change it. That’s what I think we need to take a look at,” he said.

This is just the first stage in the budget process. The budget and tax increase won’t be finalized until early next year. Still, residents might want to brace themselves for a big hit.