Kitchener budget talk begins Monday, average household could see tax increase $81

The average household in Kitchener could be paying an extra $81 for gas, water and property taxes in 2020.

Kitchener city council began talks on Monday during a meeting of the special finance and corporate services committee.

In a draft budget, property taxes are set to increase 2.2 per cent, which city staff say is in line with the multi-year average of inflation. That works out to an average of $24 a year for the average household. 

The rate for water utilities — which includes water, sanitary and stormwater — could increase by 4.4 per cent, "slightly less than the rate forecast from the 2019 budget," a staff report says. The rate increase would mean paying an added $50 a year for water utilities. 

The cost of water is on the rise because of the city's aging infrastructure, said budget committee chair Scott Davey. Some pipes that were expected to last 100 years are only lasting 40, he said.

"We're seeing water main breaks that we did not expect yet," said Davey, who said the cost of installing new pipes has also exceeded past expectations.  

Gas is expected to rise by one per cent.

Options 

Ryan Hagey is the director of financial planning for the city. He says there are options for investments in new initiatives that could impact the final amount "whether it goes up or down."

The increase is "fairly similar to what we've seen over the past number of years at the City of Kitchener and it's in line with the two-year average of inflation, which is what council is interested in," he said.

The city has also considered a special levy to address infrastructure needs. That levy is not included in this budget, Hagey said.

"There will be options that come forward to council in 2020 for consideration, but that's not being decided as part of the 2020 budget," he said.

Budget talks are also underway at a regional level. The Region of Waterloo draft 2020 budget proposes a tax increase of another $88 a year for regional services and policing.  

"I obviously struggle with the fact that on the one hand our biggest issue is the affordability of housing, on the other hand the very nature of what we do makes housing less affordable," Davey said. 

Residents can get involved in the budget process; there are two ways the city recommends they do so, he says. 

There will be an online survey on the city's website, or they can sign up to speak to council as a public delegation at a meeting on Jan. 13.

The committee of council is scheduled to meet again on Dec. 2. The final day for budget hearings is scheduled for Jan. 20.