City council eyes smaller property tax hikes in 2025 and 2026

Only months after hiking homeowners' property taxes by 7.8 per cent, city council is asking municipal staff to stick to the already approved four-year budget for the next two fiscal years.

During a meeting on Tuesday, council directed administration to limit tax increases to no more than 3.6 per cent in 2025 (estimated at 5.5 per cent for residential and 1.4 per cent for non-residential) and 3.1 per cent in 2026 (estimated at 5 per cent for residential and 0.9 per cent for non-residential).

City administration has also been told to find "reasonable operating budget reductions" to either lessen the amount of property tax required or perhaps allow for additional investment in priority areas.

Ward 12 Coun. Evan Spencer, who brought forward the proposal, said one of the main areas that administration should look at cutting from are things typically considered provincial responsibility.

"The city has real financial strain right now," he said.

"It's time for us to organize as a council and say 'Hey, here's some of the good work we've done, province, would you help us with this situation that we find ourselves in.'"

In a public statement, council said the move is a response to current economic factors, including population growth, inflation and the cost-of-living pressures on residents and businesses.

Last fall, council passed a 7.8 per cent residential property tax increase for this year. In late January, council discussed a proposed rebate that aimed to reduce that hike but it was defeated.

Previous budget discussions last year resulted in a 3.4 per cent property tax increase for 2024, but following adjustments, the figure was increased to provide money for a number of key projects, including the city's housing and mental health strategies.

Council also voted last fall to shift the tax burden from businesses to homeowners by one percentage point in 2024.

"I'd say that I have mixed feelings, I'd say it's great that we're going to look for efficiencies" said Ward 1 Coun. Sonya Sharp, who voted against the motion to cap the rate.

"I also think that, coming off a high budget like that, and now asking for efficiencies, is kind of disheartening."

Council will finalize this year's tax bill in the spring, once it gets the provincial government's requisition for the education property tax.