Grozelle: property taxes in town below average for region

The tax paid by property owners in Aylmer to the town each year are below the per capita rate and average tax burden in municipalities across Southwestern Ontario, Administrator Andy Grozelle will report to town council’s finance committee on Wednesday, Nov. 5.

The town, he wrote, “continues to prioritize affordability and cost-efficiency as key objectives.”

However, despite that, “Public concern occasionally arises regarding perceptions that local taxes are higher or not comparable to those in other jurisdictions.”

Among the factors that might contribute to that, he said, was the amount of tax money Elgin County levied from its municipalities, which he described as “among the highest in the province, despite a relatively limited range of services.

“Oxford County has a lower rate and provides services such as garbage collection to its lower-tier municipalities.”

Aylmer’s overall current property value assessment, in addition, was lower than that of many communities, “which results in a higher mill rate to generate the necessary revenue,” though that didn’t necessarily mean a greater tax burden.

The continued postponing of property reassessments across Ontario “has outdated property values being used in tax calculations.”

And finally, “Aylmer provides a comparatively high level of local services, including leaf collection, large-item (trash) pickup, sidewalk snow clearing, a splashpad, outdoor pool, and local police services.”

Concerns about affordability also were created by broader economic conditions largely outside the control of local governments, he argued.

The cost of living in Canada rose by 18.5 percent from 2021 to 2025, he said. “While inflation has since cooled, wage growth has largely not kept pace, contributing to continued financial strain for many residents.”

He offered examples of property tax bills in Elgin County municipalities and Tillsonburg, based on the average assessment for a home.

In Aylmer, an average homeowner would face a property tax bill of $2,090.

A West Elgin homeowner would pay $1,403 in property tax, the lowest in Elgin, but in Dutton Dunwich next door, that bill was $2,364 a year, the highest.

Southwold’s bill would be $1,520, Bayham’s $2,041, Malahide’s $2,106, Central Elgin $2,249 and Tillsonburg $2,154.

When measured on a per capita (per resident) basis, Central Elgin paid the most at $2,096 each, Tillsonburg came next at $1,485, followed by Aylmer at $1,473 and St. Thomas at $1,469.

Aylmer, he continued, also offered competitive water and sewage rates, “which are the lowest in Elgin County, often by a substantial margin.

“Aylmer has avoided the trend of increasing flat monthly service charges for water and wastewater connections. Instead, most residents’ bills are tied to actual consumption, allowing for meaningful cost savings through water conservation.”

Because of Aylmer’s relatively small property assessment base, Mr. Grozelle said, the town could: Reduce municipal services to core functions; Or expand the local assessment base through growth and development.

The town, he said, had in recent years “made significant efforts to expand its assessment base, pivoting decisively toward growth.”

In 2021, the town’s population growth projections were “underperforming,” and the assessment base was hurt due to a single major property tax appeal.

“Since then, the town has experienced historically high levels of growth, positioning itself well for improved revenue generation and long-term affordability.

“While future councils may consider service level reductions, community engagement consistently shows a preference for maintaining or even enhancing municipal services, especially in areas such as recreation and community programming.

“Residents have expressed a willingness to support modest levy increases if they are tied to improvements in quality of life.”

In addition, from 2022 through 2024, average household incomes in Aylmer increased by nearly $14,000 a year, “bringing them more in line with nearby municipalities such as St. Thomas and Tillsonburg.

“However, as of 2024, Aylmer’s average household income still trails the regional average by approximately $20,000.”

He noted that growth could also bring “gentrification,” making housing less affordable but bringing with it economic development.

“It may pose affordability risks for existing residents if changes occur too rapidly,” he warned, and he encouraged finding ways to provide “a diverse and plentiful housing stock.”

That could make the local real estate market more competitive in pricing in both home prices and rent costs, he believed.