PICKERING: No tax break next year – Tax increase: not justifiable but unavoidable

Tax increase: not justiable but unavoidable

After three days and 28 hours of budget deliberations, Durham Region council postponed their final budget decision to late January, leaving taxpayers waiting to learn whether they’ll face a 3% or 4.8% regional tax increase.

The Current Situation
The Vote

• Council voted 15-14 in favor of a 4.8% tax increase cap (proposed by Pickering Mayor Kevin Ashe)
• This narrowly defeated Regional Councillor Brian Nicholson’s proposed 3% cap
• Important caveat: The 4.8% figure is not final and could change significantly when council reconvenes January 28

Key Players and Positions

Brian Nicholson (Oshawa Regional Councillor)

• led the charge for a 3% tax increase cap
• Plans to bring another amendment for 3% at the January 28 meeting
• Warning to colleagues: “If they think they’re going to bring back 4.8% and it will be unchallenged, they’re in for a world of hurt”

Kevin Ashe (Pickering Mayor)

• Proposed the compromise 4.8% cap
• Criticized Nicholson’s 3% proposal as a “get-me-elected budget”

Granville Anderson (Clarington Regional Councillor)

• Called the 3% option a “putting-food-on-the-table budget”
• Cited affordability concerns: rising hydro, water rates (up 5%), and other costs making it “difficult for folks to survive”

The Competing Arguments

For Lower Taxes (3% cap)

• Taxpayers are strained by high prices and rising costs across the board
• Residents struggling with cumulative increases in utilities and services
• Affordability is at a breaking point for many families

For Higher Taxes (4.8% cap)

2027 consequences: Finance Commissioner Nicole Pincombe warned that holding to 3% in 2026 could result in double-digit tax increases in 2027

• Taking too much from reserves now creates bigger problems next year
• Need to maintain service levels and financial stability

What Happens Next

January 28 Council Meeting

• Staff will present adjusted expense and reserve fund reports
• The 4.8% figure could go up or down based on these adjustments
• Nicholson and fellow Oshawa councillor Tito-Dante Marimpietri plan to move another amendment for 3%
• Final budget decision expected at this “Round 3” meeting

Vote Shifts

Notable changes from the previous week’s vote included two Ajax regional councillors (Sterling Lee and Marilyn Crawford) and Oshawa Mayor Dan Carter switching to support the 4.8% cap.