July 27, 2025
Welcome to our latest Let’s Talk: What a sweltering summer it has been — stay cool, and enjoy any time off you might have!
In this recurring newsletter for South Niagara Chambers of Commerce members, we focus on important issues affecting local businesses like yours, in a spirit of dialogue to be shared among us:
Niagara Region is facing a major fiscal challenge due to an escalating infrastructure deficit that could lead to major tax increases, or cuts to important local public services.
The Chamber believes this problem demands a balanced approach to taxation and other options, while maintaining infrastructure investment that sustains Niagara businesses and community needs.
“Niagara’s regional budget troubles are troubling — and follow significant overall local tax increases affecting most of us in south Niagara,” said SNCC executive director Dolores Fabiano.
“It’s important to understand how we got here, in terms of regional infrastructure deficit, and work together to find solutions.
“Tackling this fiscal problem is essential to future economic development.”
The problem is stark:
Niagara Region is facing a projected $110 million shortfall in next year’s budget to address its aging infrastructure and to maintain service levels.
This gap has arisen from increasing costs and a long backlog of needed repairs to roads, bridges, and other facilities. It most recently identified $177 million in needs, but currently only has $67 million in available funding.
With significant tax increases a clear possibility, there’s a need to appreciate how a burdensome hike will seriously affect industrial and commercial businesses — alongside those paying residential taxes.
There’s no question that we must maintain appropriate infrastructure services for area businesses and residents, who depend on their long-term reliability. Alongside this, south Niagara and all regional businesses are primary sources of employment, prosperity, and future revenue growth for municipalities. Their financial health and opportunities growth are also important.
And so, what happened?
Below is a snapshot of why Niagara Region is facing this revenue trouble (and note, this doesn’t include additional, potential tax increase-issues affecting other 12 Niagara local municipalities):
- Significant Funding Gap:
The Region needs $110 million more than is currently available, to address its infrastructure backlog — estimated to be a $1.5 billion total-asset deficit.
- Aging Infrastructure:
The Region faces a growing backlog of repairs and maintenance for its roads, bridges, water treatment and other major facilities that Niagara citizens and businesses depend on.
- Increased Costs:
Rising costs for service, market volatility, tariff issues, legislative requirements, climate change and labor shortages are contributing to operational costs and financial challenges.
- Police Budget Deficit, Niagara Regional Housing and Roads:
The Niagara Regional Police Service is also facing a budget deficit, complicating the Region’s overall financial picture. Niagara Housing and Regional roads and bridges also need major investments: More than 3,000 municipal housing units require repairs, with a $100 million cost projected over ten years to improve units in poor condition and to pay for new units. About 21% of roads and 17% of bridges are in poor condition.
- Taxpayer Relief Reserve Concerns:
Meanwhile, Niagara Region’s Taxpayer Relief Reserve is below the minimum-funding target, hampering the region’s ability to handle unexpected financial hits.
- Budget Review Committee Concerns:
Compounding this, the Regional Budget Review Committee has recently expressed concerned about the financial situation, highlighting the serious gap between needs and available funding.
- Possible Service Reductions:
The budget shortfall may lead to necessary cuts in services, affecting residents and businesses.
- Potential Tax Increases:
To address the shortfall, Niagara Region may need to consider significant tax increases and/ or big cuts to services. Among our SNCC concerns is large local municipal tax increases have generally been ongoing in Niagara for our business members and residents.
Any new tax hit must consider the inflation/ costs-escalation, tariff troubles and economic uncertainties affecting Chamber businesses, their economic stability and growth.
- Strategies for sustainable funding for infrastructure — a balanced revenue model:
Aside from tax increases and budget reductions, they include potential new revenue through user fees, municipal bonds, service fees, monetizing underused public assets, public-private partnerships, transfers from other levels of government, and often business-unfriendly development charges.
We’d like to know what you think of this concern, via a questionnaire link that has been included below… What should be done to help with the Regional infrastructure deficit and increasing local taxes? We will publish the results on our SNCC website.
For additional feedback, including suggestions for future roundtables, podcasts and Let’s Talk editions, please submit your ideas to dolores@niagarafallschamber.com
https://brock.ca1.qualtrics.com/jfe/form/SV_7V4diJoxTNt69Qa.
