The number of Niagara Falls properties in tax jeopardy has risen dramatically during the current term of council, according to data recently shared by City staff. 

On May 21, through a Freedom of Information (FOI) request, The Pointer sought six years of data on the number of properties in tax arrears. City officials declined the request, claiming instead the information would be made public at an upcoming council meeting—a provision allowed under the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA). The data was presented to Council at its regular meeting on July 29.

The numbers revealed a troubling trend.

During the four-year term of the previous council, the number of properties in tax arrears ranged from 2,846 to 3,361 each year averaging 3,143 annually. Since the current council took office in November 2022, those numbers have surged—rising by 546 properties in 2023, the first full year of the new council term, and by an additional 825 in 2024. This marks a total increase of 1,371 properties in arrears, a 43.6 percent jump compared to the previous council’s average, with two years still remaining in this term.

The data replicates findings from a similar FOI request submitted to the City of St. Catharines earlier this year. As reported by The Pointer, council in the neighbouring city also approved historic tax increases during its first two years in office, those increases were followed by a comparable surge in the number of properties falling into tax distress.

While the Niagara Falls report outlining the increase of homeowners in trouble prompted general debate at council, the discussion offered no analysis of the potential impact on residents or insight into how such an alarming trend may have emerged (dramatic increases to property taxes approved by the same council members now scrambling to understand the impact were somehow ignored). The sharp rise in unpaid taxes went largely unaddressed, with the bulk of the debate centring on whether the City should wait two or three years before taking measures to recover unpaid taxes, which could ultimately include the forced sale of properties.

Prior to 2023 the total number of properties in arrears went up and down slightly, but remained close to the average. That changed when council passed its first budget of the term, which included a record tax increase of 7.9 percent in 2023, followed by a further 3.9 percent hike in 2024. The data suggest these increases may have contributed to pushing many home and business owners further into financial distress in a city already marked by economic vulnerability. The steep tax increases were approved as many homeowners were already struggling with hyper-inflation that had hit the entire Canadian economy (the rate of cost increase for most goods and services has slowed considerably in the past twelve months, but economists across the country have warned that inflation is still pushing many Canadians toward a financial cliff).

These economic struggles are well documented in the Housing Needs and Supply Report, commissioned by the City in 2021. Among its key findings, the report noted that average household income in Niagara Falls is “much lower” than in both the Niagara Region and the Province of Ontario. Nearly half of all households (49.3%) earn less than $60,000 before tax—further underscoring the limited financial capacity of many residents.

The report further explained how financial pressures were also reflected in Niagara Falls’ labour market, where the most common jobs are concentrated in low-wage service sectors. Leading the list are food counter attendants, kitchen helpers, and related roles, accounting for 4.7 percent of the workforce. They are followed by light-duty cleaners (3.6%), retail salespeople (3.4%), cashiers (3.0%), cooks (2.5%), food and beverage servers (2.4%), casino workers (1.7%) and amusement park operators (1.6%). Together with other low-income service positions, these occupations make up roughly 25 percent of all employment in the city.

Allan McKay is the Manager of the Niagara Branch of the Property Taxpayers Alliance (PTA), a not-for-profit organization that pushes for stronger accountability and more disciplined spending of property tax dollars by municipalities across Ontario. The organization’s website points to what it bluntly calls a “property tax affordability problem,” warning that “lower-income households are really suffering.”

“Recent tax increases have done nothing to keep the community affordable,” McKay said when speaking to The Pointer about the alarming rise in the number of households in tax distress.

He maintains that municipalities are not facing a revenue shortfall—they have a spending problem, one they appear unwilling or unable to control.

McKay believes the tax increases have created a situation where residents “watch their disposable income erode away as they get little in return for massive tax increases”.

At the July 29 meeting, concerns were raised by Councillor Lori Lococo regarding staff’s proposal for a budget increase ranging from 3.5 to 8 percent. Residents will also be impacted by decisions around the regional council table, where debates around the potential increase for 2026 are already underway. Niagara Region councillors approved a motion to limit budget increases for all departments and outside agencies to just 3.5 percent. It’s a budget cap Niagara Police officials have said is impossible to achieve without cuts. 

“I think we need to be more fiscally responsible,” Lococo said. “I’ve said it before, and I believe it more than ever, we need to look at zero-base budgeting.”

Zero-base budgeting is an approach in which every expense must be justified from the ground up, regardless of previous allocations. Unlike traditional budgeting, which builds on the prior year’s figures, this method starts from scratch each cycle, requiring departments to identify core services and eliminate unnecessary spending.

Lococo criticized the City’s current approach of “just keep adding more” to past budgets, calling it unsustainable. She pointed to the $34 million in outstanding property tax arrears as a clear sign that many residents are already under financial strain.

In response, CAO Jason Burgess said that a zero-base budget could be implemented if council directed it, but emphasized that the process would be demanding. He described it as “starting from nothing,” noting it would be both time-consuming and expensive. 

“You won’t like the results,” he warned, suggesting that such a model would require tough decisions and significant staff resources.

Despite the concerns, Lococo remained firm in her position that it was time to determine what levels of service should be maintained and what should be cut. 

“In the next two years, with the way this economy is, our residents are really going to be suffering,” she said. 

Councillor Mona Patel echoed the sentiment, noting the growing financial pressure on the community. 

“People are in a worse position than they were three years ago,” she said. “People are losing their homes, people are scared for their jobs because of this trade war. So I want everybody to keep that in mind when they start working on the budget.”

The budgeting cycle will begin in earnest in the fall, the City will begin a slate of discussions, departmental reports will be presented and meetings will include decisions that could either ease the pressure on households slipping into tax arrears, or accelerate the trend.

McKay wants to see more oversight to keep municipal elected officials from making irresponsible decisions. 

“The province needs to be setting limits or guardrails which provide guidance for municipalities and protects taxpayers… it seems clear nothing will change unless the province mandates it.”

Email: ed.smith@thepointer.com

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