Unpaid property taxes and related fees in Cambridge have ballooned to $38 million, nearly doubling over the past five years and drawing concern from a city councillor over mounting financial pressure. The issue was brought to light following a motion by Coun. Helen Shwery last month, who pushed for a closer look at the tax arrears. According to a staff report, the total amount owed now stretches across more than 6,000 properties in the city. “We haven’t collected 38 million. That’s a lot of money,” Shwery said. “So it is, it’s tragic, it’s scary.” How much of that total is owed by residential homeowners versus local businesses is unknown. “We are not able to provide a breakdown between residential and non-residential tax arrears,” city staff said, in part, in a statement. Shwery said it’s because current software doesn’t have the ability to get that breakdown. She said the city is currently upgrading its systems so that data will be available by the next budget cycle. “And that’s also very important because say for example the bulk of it is business,” Shwery said. “What are we doing to help our businesses? Why are the businesses struggling?” Julie Simmons, an associate professor of political science at the University of Guelph, said that households and businesses are feeling a severe financial squeeze due to current economic conditions. “And there also might be families or businesses that are negatively affected by the tariff situation with the United States,” she said. Mayor Jan Liggett echoed that in a statement to CTV News: “Tariffs that in the end affect employment, rising interest rates in recent years, inflationary pressures, and the increasing cost of everyday necessities have made it more difficult for many households and businesses to balance their finances.” If municipal revenue continues to face shortfalls, Simmons warned that non-essential city services could eventually find themselves vulnerable during budget talks. “It could be things like landscaping priorities, public parks, community centre infrastructure, [and] library services. Which would be, I think, the most vulnerable, because those are not essential things for the city to function,” she said. The prospect of potential budget impacts has Shwery weary about the city’s spending. “If we don’t have so much money, maybe we need to be more restrained on our wants,” Shwery said. “Our needs can always be covered because we do collect a lot of revenue and a lot of taxes.” The City of Cambridge notes that under provincial rules, properties falling far behind on payments can eventually face collection actions. In a statement, the city outlined: “Under the Municipal Act, 2001, the City may initiate tax registration proceedings when property taxes remain unpaid for at least two years prior to the current year. This process begins with the registration of a Tax Arrears Certificate against the property... [providing] the City with the authority to sell the property if all outstanding taxes, penalties, interest, and legal costs incurred by the City are not paid within one year of registration.” The report goes before Cambridge City Council for information on Tuesday. Meantime, the city’s mayor urges anyone struggling to pay to contact the municipal tax department to discuss payment options.
