Kitchener property tax increase to be set at inflation: 1.7%

The City of Kitchener's property tax increase is expected to be the lowest among the three cities in Waterloo region, despite the minimum wage hike scheduled for 2018.

The budget sees a modest 1.7 per cent increase in property taxes, despite challenges like the minimum wage hike which will add $840,000 to the city payroll.

Finance Committee Chair Scott Davey said the property tax increase for the average homeowner works out to about $18.

"More than 0.7 per cent of that is actually attributable to the minimum wage increase and how that's going to impact our corporation," said Davey.

When water, sewer and natural gas is factored into the equation, the total impact to taxpayers will be a $73 increase over last year, for the average homeowner.

Initially, water and sewer rates were expected to go up 9 per cent, butthe city decided to spread the cost over a longer period of time, allowing them to reduce the rateto a 6.5per cent this year, 6.4 next year and 4.5 the following year.

Daveysaid the increases continue as city tries to catch up on its infrastructure deficit.

"Governments in the past did not adequately fund it."said Davey."Weare seeing some of our pipes break a bit sooner than the expected life span. We have to deal with that to make sure we have safe drinking water."

There will be three moresessions including a public input session before the budget is finalized on January 22nd.