Niagara Region tax hike slated for approval
Municipality’s portion of blended property tax bills poised to climb 2.9%
For the average property taxpayer in Niagara, budget night at the Region is all about determining the levy. That figure, when property value is figured in, tells residents what the Region will add to their tax bill this year.
That number, which staff has suggested will be in the 2.9 per cent range, is the product of a months of work and will be decided by a vote on Thursday at the upcoming full meeting of council.
“The budget is the blueprint we provide staff to implement the vision of council,” said Niagara-on-the-lake Coun. Gary Zalepa, who again heads the Region’s budget committee. “An excellent example of that is consultation with the public, which identified that it was important for the Region to maintain its initiatives that support the homeless.
“This budget being moved will do that. We knew we needed to put resources into the pandemic response, and we are also aware that the needs of our most vulnerable residents are, if anything, greater.”
Treasurer Todd Harrison likes to remind councillors “every committee meeting, every council meeting, is budget night.
“We get all sorts of ideas on how we should spend money, but when we get into the budget process, it solidifies those priorities,” Harrison said.
The hot topic that consumed much of last week’s final budget committee-of-the-whole meeting was a funding request for a new hospital in west Niagara.
Councillors settled on contributing $12.6 million, which will help West Lincoln Memorial Hospital Foundation pay its $60-million share of the building, which is estimated will cost $200 million to construct.
Along with the promise of millions for the west Niagara hospital, which is due in 2024, council agreed to set aside $1.5 million a year for hospitals going forward.
But they will need to find more money than that in the future. Plans are underway to build a new hospital in Niagara Falls to serve south Niagara. The Region will be asked to help fund that project, and estimates of the municipality’s share are in the $60-million range.
“We know the NHS (Niagara Health) will be coming to council, likely in April, and they will ask for a similar commitment,” Harrison said. “Once we know that, we will put together an investment strategy to pay for it.”
Harrison said much of the challenge for the Region’s finance team this year has been responding to provincial announcements. One of the best examples is the offer of provincial funding to purchase a facility to help with homelessness.
“Despite the initiative, there is no offsetting revenue available from the province to help with the cost of operating the facility,” Harrison said. “At the meeting last week, (St. Catharines) Mayor (Walter) Sendzik suggested we take the money from reserves to operate the facility until the province comes up with a sustainable funding model.
“Our people are in community services are really hopeful that an announcement on that is coming in 2021, but what do we do in the meantime? The funding for acquiring the facility is only available until the end of March 2021.”
At that point, the Region will lose the funding if nothing is done.
The main reserve council has at its disposal is the Taxpayer Relief Fund. However, the fund is forecast to be at $19.5 million once fourth-quarter accounting finishes. Best accounting practices for an organization the Region’s size tell staff the reserve is underfunded — and should be maintained in the $60-million range. Eight years, and two councils, ago the reserve fund was sitting at about $30 million.
Drawing on the reserve for operational funding, possibly on an ongoing basis, will only further depleting the fund. Still, the council has to weigh that outcome against the desperate need to do something to help the homeless.