Some residents call Wilmot Township's proposed 50% property tax increase 'ridiculous' and 'insane'

Wilmot Township residents have voiced strong objection to a proposed property tax increase of more than 50 per cent this year, calling the proposal "ridiculous" and "insane." 

A report from staff says the township needs to increase property taxes, pointing to a backlog of capital projects and repairs to infrastructure, and the township's limited resources in saved reserves. 

The township held a special council meeting Tuesday night to hear feedback from residents on the 2025 proposed budget.

Rory Farnan said as a father of three young, growing children, he rejects the proposed increase, noting the cost of living is already high and food prices are projected to increase this year by three to five per cent.

"Simply put, 51 per cent is not acceptable. Regardless of bar graphs or impact comparisons, it is important to realize the severe and unprecedented impact to taxpayers that this single increase poses," Farnan said.

"I oppose this budget, but am willing to compromise if it is part of a broader strategy that addresses our financial challenges in a sustainable manner," he added. "Yes, we need a new deal with the province, but more importantly, Wilmot taxpayers need a new deal with their municipality."

Many Wilmot residents are already struggling, there are neighbours in our community that are choosing between paying their bills or feeding themselves.- Rory Farnan, Wilmot Township resident

Farnan said the decisions of previous councils are partly to blame for the situation the municipality now finds itself in, with "decades of historical shortfalls" resulting in a need for corrective action.

But he said it is important for the council to approach the situation with a fair and balanced plan, considering both the added burden to the taxpayer and the need to ensure the long-term sustainability of its finances.

"Many Wilmot residents are already struggling. There are neighbours in our community that are choosing between paying their bills or feeding themselves," Farnan said.

"Residents with lower wages and fixed incomes are finding it increasingly difficult to pay their rent or remain in their home due to rising costs. It is your duty to ensure that any financial decisions made do not intensify these hardships."

The town has said critical projects are needed, like a new fire station in New Hamburg, road upgrades and improvements to the Wilmot Recreation Centre.

Township staff said the proposed budget would add $43 per month ($514 per year) to the township's portion of the average homeowner's tax bill.

The increases to the average homeowner's tax bill would include adding:

• $35 per month for capital investments.
• $3.85 per month to offset inflationary costs.
• $9.50 per month to address funding and resource gaps in the operating budget.

This would be in addition to the increase in the Region of Waterloo budget, which was passed in December. The region's $2.4-billion 2025 operating and capital budget for regional services, including police, rose the regional portion of the tax bill by 9.48 per cent. The region says that means an increase of $241 per year for the average property owner, or $20 more each month.

Farnan said the municipality needs "a multi-year strategy to raise taxes in a manner that enables our residents to plan their budgets."

At the same time, he said, "the reliance of continual tax increases to satisfy our spending requirements is unsustainable and will only lead to further discontent among the community."

Residents already face 'significant tax increases'

Ted Shapiro, a resident of Foxboro Green Condominiums for Seniors, said his community is made up of mostly retired seniors on fixed incomes, with no opportunity for residents to go out and earn more money "to meet a major, ridiculous tax increase of over 50 per cent from Wilmot Township."

He said residents are already facing "significant tax increases" from the Region of Waterloo.

"We also have provincial and federal income taxes to pay, and gas taxes and so forth," he said.

Shapiro also acknowledged the current state of the municipality's finances is not just the fault of the current Wilmot council.

"It results from the lack of guts from councils of many years past … it's now caught up with us," he said.

"However, we don't think that today's taxpayers should be burdened with making up for those poor decisions made by previous councils in one horrendous whack like this proposed increase in just one year. It's insane."

He suggested council should make a plan with a compromise of "maybe a 10 per cent increase for each of the next five years," or a 10-year plan of five per cent per year.

Lourie Le Riche, a resident of Wilmot Township for the last 17 years, also opposed the proposed property tax increase.

"A one-time boost to capital infrastructure investment does not seem realistic — a long-term plan would be better," she said.

Le Riche is concerned that if council receives a cash injection of 50 per cent, there's no guarantee the funds would all be used for the intended purpose.

Le Riche's recommendations included a "hiring freeze," adding "employees are a big expense for any corporation."

Mayor Natasha Salonen said she anticipated negative feedback from residents, adding "it's been quite resounding at this point in time that not many people are happy with the current proposal."

She reminded residents "this is a draft budget proposal at this point in time," and the community suggestions and recommendations will be brought forward to a special council meeting on Jan. 16.