Niagara Falls taxes climbing 1.5%
Taxes will increase $50, or 1.5 per cent, for the average Niagara Falls household this year.
Finance director Todd Harrison said the city’s annual spending is at 2.8 per cent, which is below the rate of inflation.
The largest increase is in salaries and benefits due to contractual obligations, increases for fire arbitration, transit operating hours and additional staff in parks and building/bylaw.
Harrison said the budget maintains core service levels, while the municipality’s debt continues to fall.
Mayor Jim Diodati said the budget is “responsible” and reflects one of the lowest tax increases in the region.
He said the municipality had held its water rate, its debt has fallen $14 million during the past four years, and investment in infrastructure is “through the roof.”
“We’re in a good, enviable place,” said Diodati.
“So many good things are happening in our community.”
Carolynn Ioannoni, who along with Vince Kerrio, was one of only two councillors to vote against the 1.5 per cent hike, said the city receives more than $20 million per year for hosting two casinos — something other Niagara municipalities don’t benefit from. That’s why, she said, residents should not see a tax increase.
“I think at some point (the casino reserve funding) needs to benefit residents in their pocket books.”
Council was presented with several budget options during Tuesday evening’s meeting.
During a meeting in January, council directed staff to report back with options to reduce a proposed 2.4 per cent levy increase.
When council was presented with an initial 2018 operating budget, the city was facing a $1.6-million difference between expenses ($135,155,180) and projected revenues ($133,549,157).
Harrison said the budget included additional expenditures due to council priorities, such as enhanced preventative maintenance, multi-year transit enhancements, and increased resources for park/street maintenance.
Staff recommended the original budget, which would have cost the average taxpayer $60 (1.9 per cent) more this year.
Option 2 — staff recommended it because council did not support the first option — reduces the increase to 1.5 per cent, which council approved.
Staff reduced the budget $543,000 by altering expenditures or revenue based on improved estimates, reduced transfers to reserves to mitigate potential liabilities, and increased allocation of inter-fund transfers.
The largest cut will be a reduction in allocations to reserves for pending tax appeals by $400,000.
Option 3 would have led to a zero per cent tax hike. To do that, staff would have had to make further reductions than Option 2, including: deferring $530,000 worth of transit enhancements; $190,600 in new hires for the fire department; reducing the fleet reserve by $150,000; and $140,000 reduction for fee-for-service groups.
Staff said that option would be contrary to the direction of council’s strategic priorities and in many cases only defer these issues to future years.
Option 4, which Ioannoni supported, would have largely wiped out the city’s remaining $1.9million casino-hosting reserve fund to offset any tax increase.