Unpaid property tax bills continue to be going in the wrong direction in Guelph.
But according to a new report from the city’s CAO, the city is still strong both economically and financially with a “consistent low level of tax receivables and tax arrears.”
City coffers were short $14 million as of the end of last year.
Factor in a 2024 tax payment from the province worth $2.5 million – which was only received earlier this month – and the number is down to $11.7 million.
But that is still up from the $10.1 million in tax arrears reported a year ago, which was knocked down to $7.8 million later on thanks to another provincial payment that arrived after 2023 closed.
Over the last 10 years, the average tax arrears stands at around $8.6 million.
“(The increase) can be tied to increased interest rates in the market, and overall economic changes,” the report said.
“Enhanced payment options such as multiple pre-authorized payment (PAP) plans, with 41.6 per cent of properties on a PAP, and the ability through any Canadian financial institutions or with a credit card also contribute to the low tax receivables.”
Of note, the 41.6 per cent is up slightly from the 39.6 per cent of residents on a PAP in 2023.
Over the last 10 years, the city has also seen an 11 per cent increase in the number of properties in the city, going from 43,976 in 2015 to 48,914 in 2024.
In 2024, an additional 1,123 properties were enroled in the PAP program.
As of the end of 2024, the report says there were 289 properties in arrears for two years, down slightly from the 310 in 2023. Being in arrears for two years makes the property eligible for tax re-sale by the city.
But it’s not for a lack of trying. The report says of the 310 properties, there were payments made on over 87 per cent of them last year.
“Of the remaining 40 eligible properties, the city proceeded with the tax sale process,” it said, adding tax arrears certificates were registered in August.
No properties were eligible for sale through the tax sale process last year.
There are a few properties eligible as of this spring, but the report said city staff is working with property owners to clear that up and avoid the process.
One thing that has helped is a new portal for property taxes. It went live in January 2024, and helps provide a convenient way to sign up and manage a PAP.
At the close of 2024, almost 20 per cent of all properties have been signed up, and over 2,000 transactions have been made through it.