Report outlines projected regional tax hike for 2024

A hefty tax hike could be on the way for the Region of Waterloo.

A report that will be presented to council Wednesday night which suggests a tax hike in the range of 10-12 per cent.

That is leaving two regional councillors concerned about having back-to-back years with high tax increases.

Rob Deutschmann, regional councillor for Kitchener said this came with a bit of sticker shock when he first saw the report from the region’s chief financial officer.

“It makes one concerned about whether we can do something about it or not,” said Deutschmann. “If we are able to do something about it, what’s that going to look like? That could mean cuts and what sort of cuts are we looking at here? What’s going to be acceptable? What are we prepared to do?” he asked.

The region’s Chief Financial Officer, Craig Dyer said there will need to be an extra $55 million dollars needed in order to meet current service levels. That would mean a 12 per cent increase. If you factor in an estimated 1.75 per cent assessment growth, that would take the increase down from 12 per cent to about 10 per cent.

That’s leaving Regional Councillor for Cambridge, Doug Craig trying to figure out ways to help drive that percentage down.

“I’ve never seen in all my years in municipal politics, two budgets in a row of such high thresholds,” he said, “it’s just incredible (…) there’s a lot of explanation as to why, it’s very difficult. It’s difficult for ratepayers and I think we have to be very sensitive to that,” he said.

Inflation is one of the reason’s as to why this could be a tough budget year for the region, as well as service expansion and unknown provincial funding.

Cllr. Craig said there has to be some movement in terms of being able to drive that number down.

“I will be asking regional council to look at an eight per cent and a six per cent and ask staff to come back and show us what that might look like.”

Cllr. Craig said that the province is walking back on some commitments to municipalities as well which is downloading that cost onto the ratepayer.

“The province is walking away from commitments of up to $15 million which local taxpayers have to pickup.”

Deutschmann is also hoping that a solution can be found to prevent such a high increase.

“We can push off some capital projects and do them later,” said Deutschmann. “The focus and the time really needs to be spent working amongst ourselves [fellow councillors and staff] to try and figure out what we can do to bring that percentage down.”

Looking at the capital projects is something that Cllr. Craig is also looking at as a potential solution.

“Do we really have to do all of them this year,” he said, “if, in fact, we didn’t do some of them, would it really have a major impact on people? I think there are capital projects that we can delay.”

Cllr. Craig said there could be some money freed up by looking at the reserve funds.

“Look at the number of reserve funds we have and how much money is in those,” he said, “as an example I’m talking about the rate stabilization fund which is sitting there with $15 million dollars. In order to reduce a one per cent increase, you have to find close to $7 million.”

Deutschmann agrees with reviewing the reserve funds in order to use extra cash towards the budget that needs $28 million to be made due to inflation costs. That number in 2023 was at around $35 million.

Dyer added in the report that due to our region growing at a rapid rate, $9.6 million is needed to expand services such as paramedic services, transit services and homelessness programs.

Regional council will take a look at the report Wednesday night.