At the January 13, 2025, regular meeting, Cornwall City Council reviewed the 2025 Budget Update and Inquiry report (2025-01-Financial Services). The report, presented by the Financial Services Department, provided updates following the release of the 2025 assessment roll by the Municipal Property Assessment Corporation (MPAC).
Key highlights included a finalized 4.26% tax levy increase, generating $94.4 million in property tax revenue. Adjustments to the residential property tax rate saw a reduction from an anticipated 4.89% to 4.01%, with the average homeowner’s taxes rising by $119.71. The multi-residential tax rate was frozen, redistributing potential increases to other property classes.
The update also addressed ongoing efforts to align the multi-residential tax ratio with provincial regulations. The City’s strategy includes gradual reductions to the ratio, aiming to balance tax equity and support affordable housing. These changes align with Ontario Regulation 65/17, which prescribes a maximum threshold for multi-residential tax ratios. For new multi-residential properties, the tax ratio remains fixed at 1, fostering the development of purpose-built rental housing.
Further, the report confirmed that the City’s property assessments had surpassed initial projections, enabling the reduction in the average tax increase without altering the approved levy.
In response to inquiries from the December 10, 2024, Council meeting, the report also provided an analysis of potential impacts if the multi-residential tax rate freeze had not been implemented. Without the freeze, the overall tax rate increase would have been 3.76% instead of 4.01%, redistributing approximately $214,734 across other property classes.
Council will revisit tax rate and tax ratio by-laws in the spring following further verification of property tax data through the Online Property Tax Analysis (OPTA) system. This step ensures compliance with provincial requirements.