When We Talk About Taxes, We Need to Talk About the Whole Financial Picture

During an election, it is easy to talk about millions of dollars as though they are simply numbers on a page.

We hear promises about new programs, new facilities, new services and new spending.

But there is one question that always needs to follow:

Where is the money coming from?

As a Councillor who has actually sat through four municipal budgets, I believe residents deserve to understand what these numbers mean — and the financial pressures this Council has actually had to manage.

What Does $4 Million Mean to Niagara-on-the-Lake?

Let’s put $4 million into perspective.

As a general reference point in recent NOTL budgets, approximately $150,000 represents about 1% of the municipal tax levy.

At that scale:

$4,000,000 ÷ $150,000 = approximately 26.7% of the municipal levy.

That does not mean adding $4 million to a budget automatically increases everyone’s property-tax bill by 26.7%.

Municipal spending can be funded through grants, reserves, user fees, new revenues and assessment growth.

Your overall property-tax bill also includes Regional and education portions.

But it demonstrates just how significant $4 million is to a municipality the size of Niagara-on-the-Lake.

What Has Happened to the Levy During This Term?

The approved municipal levy increases over this term have been approximately:

2023 — 8.25%

2024 — 6.75% after assessment growth

2025 — 7.92%

2026 — 2.19%

You cannot simply add those percentages together because each year’s increase builds upon the previous year’s levy.

Compounded, they represent approximately a 27.6% increase over the four budgets.

There is another way to understand the change.

The Town’s operating levy was approximately $13.7 million before this term of Council and is approximately $18.2 million in 2026.

That’s approximately $4.5 million more in annual levy dollars.

However, there is an important distinction.

That does not mean an existing taxpayer’s municipal taxes increased by the same percentage as the total levy.

Assessment growth and new properties also add revenue to the tax base.

That’s why I believe we need to be very careful when discussing municipal finances. There is a difference between the total levy, the annual levy increase, and the actual impact on an individual taxpayer.

Now Let’s Talk About Legal Costs

There is another part of the financial picture that residents need to understand.

This Council has dealt with extraordinary legal expenditures.

In 2024 and 2025 alone, approximately $3.52 million was spent on legal matters.

In 2024, Town staff reported approximately $1.647 million had already been spent by September 30, with the year-end amount projected to reach approximately $1.8 million.

In 2025, actual legal expenditures were $1,718,737 more than double the approved legal budget of $809,000.

That’s approximately $3.52 million in just two years.

And there is an important piece of context that shouldn’t be left out of this conversation.

In its 2024 Legal Expenditures Report, Town staff specifically stated that:

“All active General Litigation matters were initiated during the previous term of Council.”

That matters.

Because Councils don’t start every four-year term with a blank financial slate.

Decisions made years earlier can result in financial obligations that future Councils and future taxpayers are left to deal with.

Randwood Alone: Approximately $3.47 Million

One example is Randwood.

By 2025, the cumulative legal costs associated with Randwood had reached approximately $3,467,668 since 2018.

That’s nearly $3.5 million on one matter alone.

In 2025, the Town also incurred significant costs related to settlements involving other legacy matters, including:

Hummel Properties — $1,000,000 settlement

27 Prideaux Street — $225,000 settlement

These aren’t insignificant numbers.

And they provide important context when discussing the financial record of this Council.

Does That Mean Legal Costs Caused Our Tax Increases?

No, and I think it’s important to be accurate about that.

You cannot simply take $3.52 million in legal expenditures and say taxes would have been $3.52 million lower without them.

Legal expenditures occurred over multiple years.

Some expenses can be funded through reserves or other sources.

The Town also has legal obligations it cannot simply walk away from.

But there is no question that millions of dollars in legal expenses create financial pressure.

Those are dollars that ultimately have to be accounted for somewhere in the municipality’s finances.

And that is why decisions made at the Council table matter long after the vote is taken.

Now Consider a New $4-Million Proposal

This is where I think residents should start asking more questions when candidates make spending promises.

A $4-million proposal is not a small number for Niagara-on-the-Lake.

For perspective:

The Town’s annual operating levy has grown by approximately $4.5 million since the beginning of this term.

The Town incurred approximately $3.52 million in legal expenditures during 2024 and 2025 alone.

And Randwood has accumulated approximately $3.47 million in legal costs since 2018.

So when someone proposes another $4 million in spending, my first question isn’t necessarily whether I like the idea.

My first question is:

How are you paying for it?

Is there a provincial or federal grant?

Is there funding from another level of government?

Is there a dedicated reserve?

Is there a new revenue source?

Is it funded through development-related revenues?

Is there an offsetting reduction somewhere else in the budget?

Or is it ultimately going onto the property-tax levy?

Those are questions every candidate proposing significant new spending should be prepared to answer.

Spending Is Easy.

Budgeting Is Harder.

There are many things I would love to see our Town invest in.

But municipal government isn’t about creating a wish list.

It is about establishing priorities, understanding the financial consequences of decisions and determining what taxpayers can reasonably afford.

Sometimes the right decision is to spend money.

Sometimes the right decision is to invest now to save money later.

Sometimes an investment is too important to postpone.

And sometimes the responsible answer is simply:

We cannot afford to do everything at once.

That isn’t negativity.

That’s budgeting.

Residents Deserve the Entire Equation

When we talk about this Council’s tax record, residents deserve the complete financial picture.

Yes, the levy has increased.

We should acknowledge that.

But we should also explain what was happening behind those budgets, including millions of dollars in legal expenditures and financial obligations resulting from matters that began before this Council took office.

And when we make promises about what should happen during the next term of Council, we should apply exactly the same standard.

Don’t just tell residents what you’re going to spend.

Tell them what it costs.

Tell them where the money is coming from.

Tell them what you’re willing to give up to pay for it.

And if the answer is property taxes, tell residents that too.

Because ultimately, whether the money comes from the operating budget, reserves, fees or the tax levy, elected officials have a responsibility to remember one very simple fact:

It is taxpayers’ money.

And every dollar should be treated that way.