Newmarket Sets Budget Direction: Balancing Act

NRU
Feb. 1, 2017
Leah Wong

After years of property tax increases below the rate of inflation, Newmarket council is working to find a balance between keeping property tax increases around the rate of inflation and providing residents the services they have come to expect.

On Monday Newmarket committee of the whole voted in favour of a 2.99 per cent increase in the town’s portion of property taxes for 2017. This is slightly higher than council’s 2.8 per cent target going into the budget process.

“This council is not bringing in a 1 or 2 per cent [property tax increase], we’re bringing in a 2.99 per cent [increase]. I think...it’s because we collectively believe in investing in our community,” regional councillor John Taylor told committee. “Having a community that wins awards...that requires investment and I believe the public doesn’t want us to starve the system, they want us to invest in it.”

As part of the budget process staff has been reviewing the town’s capital program to reduce its impact on the operating budget. This includes reconsidering the timelines in the town’s recreation playbook to ensure it can afford to operate its new facilities.

“There are a lot of operating costs [associated with the capital program]. If the capital budget is approved it would have an impact on the 2018 operating budget,” financial services director Mike Mayes told committee.

Even with a 2.99 per cent property tax increase, council will have to delay proposed priority initiatives. This includes budget requests as part of the town’s Organization Ready 2020 strategy, which is intended to ensure the town is making needed investments to ensure its sustainability in the future. The town will delay an increase in contributions to its asset replacement fund and the hiring of 4.5 full-time staff positions - including a natural heritage coordinator and GIS analyst - that were proposed for this year.

In addition to the tax increase, Newmarket residents will see one major change on their 2017 property tax bills: a dedicated stormwater management charge. For typical homeowners this will not result in an increase to their tax bill, as the new charge is less than what they would have previously paid for stormwater through property taxes and water rates. Owners of larger properties will be assessed a higher fee, because of the size of their properties. The new charge will fund the budget for stormwater management services, which was previously funded through property taxes and water rates.

“Most residential properties will see a negative number as more will be taken off other bills, than it will cost in the stormwater charge,” financial services analyst Kevin Yaraskavitch told committee. In 2016 the average homeowner paid $55 for stormwater ($45 through property taxes and $10 through the water bill). The new charge will be about $40.

The funding level for stormwater management services will remain consistent over last year, Yaraskavitch said. However, the introduction of a dedicated revenue stream will enable the town to build up its financial capacity to address challenges, such as the impacts of climate change that are putting stress on the stormwater system. Council will consider the budget at its February 13 meeting.