City continues to invest in strategic priorities and pandemic recovery with 2022 Operating Budget

While the City of St. Catharines continues to cope with the financial impacts of the COVID-19 pandemic, critical investments will continue to be made on economic, social, cultural and environmental strategic priorities.

On Monday night City Council passed a $114.7-million 2022 Operating Budget, and with it a tax increase that will see the average St. Catharines homeowner paying an additional $4.06 a month. With a goal to continue strategic investments the City will utilize reserves in the year ahead to offset the cost to taxpayers for the continuation of important work and the financial impacts of COVID-19.

“As we continue through the pandemic, the City has delivered a balanced budget that is below the rate of inflation yet respects the service levels our residents expect and deserve,” said Mayor Walter Sendzik. “Thank you to Budget Chair Mat Siscoe and Vice-Chair Lori Littleton for their leadership in guiding the budget through the Council process, and to City staff for their efforts to find efficiencies, responsibly deploy reserves and prioritize projects. The result is a strong budget that will continue to propel St. Catharines forward.”

The passage of the $114.7-million operating budget comes alongside the passage of a $51.8-million 2022 Capital Budget that includes $8.3 million for water distribution projects; $2.7 million for wastewater and pollution control; and $13.1 million for transportation projects.

The capital budget contains critical investments in the priorities of active transportation; climate change adaptation / mitigation; and parks renewal. Investments include $6.7 million to support active lifestyles with $2.3 million directed to active transportation projects like bike lanes and trails; and $4.4 million for recreation and parks renewal, including the construction of four playgrounds, six sports courts and a new splash pad in Merritton.

In the capital budget, $5.4 million will support the fight against climate change with investments to increase the urban tree canopy, pollution control, shoreline protection and reductions in greenhouse gas emissions.

The 2022 Operating Budget will drive economic prosperity through investments in development charges initiatives; utilization of the election reserve to fully cover the costs of the 2022 municipal election; implementation of a City-wide rolling stock purchase and funding strategy; and high-quality programming at the FirstOntario Performing Arts Centre to stimulate growth downtown.

Social well-being investments include continued COVID-19 mitigation efforts; support for the Niagara Assertive Street Outreach Program; a new licensing program for short-term rentals; and staff resources dedicated to equity, inclusion and diversity.

These investments will move forward despite the impacts of high inflation; $2.1 million in non-discretionary increases to the budget including debt repayments and rising insurance premiums; and $230,000 in costs associated with bringing services back up to their pre-pandemic levels. To offset these costs, and the impact to tax payers, the City will utilize about $3.6 million in reserves while delaying about $2.6 million in major projects and increases to later years.

As a result of these mitigating factors the City portion of the tax rate will increase by less than inflation, with a 3.3 per cent increase. This increase will see the average homeowner, with a home valued at $254,000, paying $48.69 or about 2.97 per cent more on the City portion of their tax bill in 2022.