City of Kitchener’s 2006 Budget

Kitchener City Council Approves Lowest Property Tax Increase in the Region at 1.65%
Kitchener City Council passed its 2006 budget today with a property tax increase of 1.65 per cent. This will represent an increase of $13.83 on the tax bill of an average house, assessed at $183,000.

The entire increase is for the special levy of 1.65 per cent, which funds the ten-year, $110 million Economic Development Investment Fund (EDIF). There is a zero per cent increase to the operating budget.

''This is the lowest property tax increase in the region and one of the lowest in the province,'' said Mayor Carl Zehr. ''It’s a way of giving back to the taxpayers for the strong growth we’ve experienced this year.''

In June, Council directed staff to target a tax increase of 3 per cent. The increase was brought down through a number of savings and efficiencies, and through higher than projected assessment growth, which added over $3 million in revenue to the City’s budget.

''Thanks to strong assessment growth and the efficiencies staff have found, we are able to swallow the cost of inflation, and pass an operating increase of zero,'' said Councillor Berry Vrbanovic, Chair of the Finance and Corporate Services Committee. ''As a result of some of our previous long term strategic investments, the budget Council passed today is returning some of the resulting benefits back into the pockets of Kitchener residents.''

Added Councillor Michael Galloway, ''I am delighted that, even with the EDIF levy, the tax increase is well below the rate of inflation.''

The overall budget was reduced without affecting front-line services. A budget adjustment of $200,000 was made to reflect the City’s experience in collecting penalties and interest. Council also included a transfer of $250,000 from Kitchener Wilmot Hydro and a contribution of $413,639 from the Tax Stabilization Fund. These are increases to the transfers already budgeted for these items.

For more information:
Pauline Houston
General Manager of Financial Services and City Treasurer
City of Kitchener
Phone: 519-741-2646
E-mail: pauline.houston@kitchener.ca

Michael May
Senior Public Affairs Officer
City of Kitchener
Phone: 519-741-2935
E-mail: michael.may@kitchener.ca