At their Tuesday, January 31st meeting on the 2023 Budget, Niagara Falls City Council unanimously approved the Tax Supported Operating Budget with an increase of 7.4% for operating expenses and an additional 0.5% Special Capital Levy.

After COVID, the economic downturn resulted in a strategic decision to keep taxes artificially and unsustainably low for the past couple of years. CAO Jason Burgess presented a 2023 Tax Supported Operating Budget that positions the City for future success as a high-value service and amenity-rich community with a very reasonable cost of living. The proposed budget would maintain these services and amenities while addressing lingering COVID impacts, high inflation, new provincial requirements, aging technological systems, and the high population growth projected for the City.

Factors impacting the 2023 budget:

• In 2022, the Budget included spending $6.5 million more than the sustainable revenues received. This needs to be corrected.
• Inflationary impacts increased pressure on the capital and operating budgets. Inflation has risen by 16.6% in the last two years. Taxation revenue grew by 5.1%, while expenses grew by 20.5% (2021 - 2023).
• The New Niagara Transit Commission has taken on transit services. The previous cost of $8,128,009 to residents moves to Region's tax levy, but the City is retaining $537,000 in 2023 for some continued costs and one-time obligations.
• The City's Ontario Lottery & Gaming (OLG) Host Agreement revenue is not expected to return to pre-COVID levels because of impacts from online gaming and Toronto gaming expansion. 
• A significant hiring increase of six firefighters to balance overtime issues due to extended leave of absences and WSIB claims. This will not result in a service level increase.

Some of the additional challenges of preparing for the future include:

• Addressing the Provincial Asset Management Plan (AMP) requirements. The City needs to spend or save an additional $20 million annually to address these requirements. It is recommended that the infrastructure levy be increased, bringing it to 2% (or $1.5 million/year) and that two new staff positions be added to manage the program. (This is what was recommended; however, what was approved at 1.5% or $1.1 million) (1% from last year and an additional 0.5% this year).
• Bill 109 - More Homes for Everyone Act, 2022, and the mandated 23 major legislative changes aimed at increasing the speed of Planning approvals. The City will need to increase staff by five to meet Bill 109 deadlines. 
• Increasing service levels in Forestry. Based on the City's current tree inventory,  it takes 25 years between tree inspections. The City needs to address backlogged work, the community's desire for more planting, environmental stewardship with a crew of 3 new staff, and related costs.
• Improving the Corporation's organizational capacity and becoming more efficient by modernizing and maintaining critical corporate systems, including Enterprise Resource Planning, Customer Service, Work Orders and increased cyber security.

Ms. Tiffany Clark, the City's Finance Director, stated that a 7.4% increase to the levy plus an additional 0.5% capital levy results in the following impacts on the taxpayer:

• $249,000 residential assessment (which represents the average household) increases City taxes by $8.76/month or $105/year from $1,326 to $1,432. 
• $500,000 residential assessment increases City taxes by $17.60/month or $211/year from $2,664 to $2,875 per year.
• $1,000,000 commercial assessed property increases taxes by $61.06/month or $733/year from $9,242 to $9,975 per year.

In comparison to our municipal neighbours of similar size and with professional firefighting services, Niagara Falls provides a higher level of service. Even with the tax increase, Niagara Falls' taxes would still be below comparables in Welland and St. Catharines, and Niagara Falls would continue to have the fifth lowest taxes in the Region.

Moving into 2024, staff asked for Council's support to focus on recreation user fees, fire services costs, lean practices, reviewing poor-performing and surplus assets, and protecting the most vulnerable.

Council also approved the 2023 Parking Budget, which was presented to Council along with recommendations to increase revenue. Council approved seven (7) recommendations related to the parking budget, including options to increase revenue.

January 31, 2023, Special City Council Meeting:

• View the Agenda
• View the Meeting Video

Operating Budget: 

• View the Final Budget 2023 Presentation
• View the Revised Budget 2023 Presentation

Tax-Supported Operating Budget:

• View the 2023 Tax Supported Operating Budget Report

Parking Budget:

• View the 2023 Parking Budget Report Presentation

In November 2021, Walkers Aggregates Inc. submitted Official Plan amendments and a Zoning By-law amendment to the City of Niagara Falls and the Niagara Region to facilitate the establishment of a proposed quarry. The City has been working with the Joint Advisory Review Team (JART) as the applications go through the Planning Act process.

A separate application process is required under the Aggregates Resources Act to obtain additional permissions from the Ministry. To date, the City and Region have yet to receive notification that this process has begun. In March 2022, an Open House was held where the public expressed concerns regarding blasting, air quality, noise, environment, and property values.

The City and Region are currently waiting for the applicant to resubmit the application in response to the comments made by the City, Region, Niagara Peninsula Conservation Authority, and the peer reviews conducted for some of the submitted studies. Once a submission is made, a future Open House is anticipated before bringing the application with a recommendation report to Council for a Public Meeting and a decision.

See the full report here.

Housing affordability is and will continue to be a major issue facing the community. Municipalities can introduce tools and incentives to address issues with respect to housing availability and affordability.

Council directed staff to initiate a Vacant Building Registry and a Vacant Building Registry By-law for the fourth quarter of 2023 to encourage the repurposing of vacant building stock for residents and businesses.

A vacant building registry provides a comprehensive process for monitoring vacant buildings to protect them against continued deterioration and discourages building owners from allowing their buildings to remain vacant for extended periods of time and prevent ‘demolition by neglect.’

Council also directed staff to bring back a report at a future date outlining how the City may implement a vacant land tax to deal with idle properties.

Read the report here.