Gananoque faces 9.7% tax levy hike

Residents of Gananoque are bracing for a significant property tax increase as town council prepares for the third and final reading of the 2025 budget on Tuesday.

The proposed 9.7-per-cent tax levy hike (depending on a hospital funding decision) translates to an average increase of $278 per year, or $23.18 per month, for the average homeowner, in this case with a property assessed at $197,000.

Currently, the levy increase is 8.97 per cent, said Gananoque treasurer John Morrison.

Because of weighted assessment, the average residential homeowners will experience an 8.75-per-cent increase in their tax bill, he added.

Council is to decide Tuesday whether to fund a request made by the University Kingston Hospitals Foundation. If the decision is yes, the levy increase will be 9.68 per cent and the average tax bill impact will be 9.46 per cent, said Morrison.

Mayor John Beddows acknowledges the sharp rise, but points to inflation, provincial downloading, past underfunding of capital reserves, and declining casino revenues as key drivers behind the increase.

The budget also includes a 1.7-per-cent rise in water and wastewater rates, while the capital infrastructure levy for water and wastewater remains unchanged.

“We’re going to have to take a hard look at our service levels,” said Beddows, emphasizing that municipal costs are climbing faster than household inflation.

One example he highlighted is skyrocketing insurance premiums, which have quadrupled since 2018, now accounting for over four per cent of the property tax levy.

Another financial strain comes from the province’s mandated service expansions, including a new requirement to inspect sewer systems with cameras every five years, costing the town an estimated $75,000 annually.

Additional policing costs due to the Community Safety and Policing Act and the shift to the NG911 emergency communications system are also contributing to the budgetary squeeze.

Compounding the issue, revenue-sharing from the town’s casino has dropped significantly.

In 2014, Gananoque received $1.7 million in casino funds, an amount that would be worth $2.1 million today. Instead, the town now receives just over $1.1 million, a loss of nearly $1 million in real-dollar terms.

Beddows warned that with provincial and federal governments running deficits, municipalities may not be able to rely on consistent transfer payments in the future.

While one-time grants have provided some relief, such as last summer’s $5.7 million Housing Enabling Water Systems fund grant, the mayor stressed that these are not stable revenue sources.

Beddows is encouraging residents to attend Tuesday’s council meeting, either in person or online, to have their voices heard.

“We need to hear from you on this, or any other issue that matters to you,” he said.