Future regional tax increases capped at 5 per cent

In and effort to try to keep tax hikes reasonable, the region’s administration and finance committee passed a motion this week, with that express goal in mind.

Kitchener Councillor, Mike Harris tabled the motion proposing a five per cent cap on future tax increases as a way of ensuring the tax payers burden is front and center in budget talks.

He told the committee his motion creates a clear target that will guide staff as the budget talks get underway.

“This is a great starting point to send clarity back (to staff), knowing that our leadership team and all the different divisions will put their best foot forward to balance the need for us to deliver those critical services to our residents, especially in a growing community like ours, while balancing the ability for those who pay for them to do so.”

Staff were given a target of eight per cent for the 2025 budget but it ended up at 9.5 per cent.

Given that budgets, particularly in recent years, have consistently exceeded the target increase, some councillors wondered if there was a need for a cap of any kind. Some were also worried if a hard cap would result in program cuts.

Harris said what the five per cent does is force staff and council to prioritize the most important items at time when spending needs to be carefully considered amid the cost of living crisis and looming tariffs.

“We know that work can be done now to truly bring forward the things that we have to do, that we’re legislated to do and maybe we have to put off some of those other things to another time.”

Harris said the motion needed to have “a little teeth” if were to have the desired effect. But he did also say that ultimately it will be up to council if the target is met or not. He said council has the final say and other items could be added to the budget that would push it beyond the five per cent.

The motion passed by a 12-2 margin.