Newmarket council 'kicks tires' on 3 tax increase options for 2019

Average homeowner can expect to see a hike from $121 to $140

YorkRegion.com
Jan 23, 2019
Teresa Latchford

The average homeowner in Newmarket can expect to see a property tax hike of $121 to $140.

Member of Newmarket’s town council had the chance to “kick the tires” on the preliminary draft budget presented by town treasurer Mike Mayes. His presentation included a proposed 3.95 per cent property tax increase on the average residential property with two alternate options, a 3.2 per cent or $62 option or a 2.99 per cent or $58 option.

When the water, wastewater and stormwater rate increases are factored in, the tax increase would total $140, $125 or $121 for the average household depending on the option council decides to pursue.

In December, an initial proposed tax increase of 3.95 per cent was presented. That same month, council supported capping the tax rate increase at 3.2 per cent, made up of the Consumer Price Index minus half a per cent and an additional 1 per cent for the infrastructure levy known as the Asset Replacement Fund (ARF). These funds are used to replace or repair roads, sewers and more when needed.

The contribution into the fund with the recommended 3.95 per cent tax increase would be $585,000, but the contribution could be reduced to $146,000 or $23,000 to achieve one of the alternative tax rates.

“These reductions are not recommended, but would be the easiest way to achieve the lower tax increase targets,” Mayes said. “But with reductions made to the contribution in the past, the fund is low and already is borrowing from the water and wastewater fund.”
Town staff executed a number of efficiency exercises to find reductions and cost savings before the draft report was released, leaving only the softening of services levels or deferrals for further reduction, Mayes explained.

He pointed out that reducing service levels wasn’t a preferred option and that deferrals come with a good amount of risk. For example, deferrals are responsible for the $730,000 worth of items carried over from 2018, which is challenging the 2019 budget. Of this carry-over, Mayes confirmed $230,000 of it, along with $92,000 in mandatory items, will be carried over to 2020.

“Deferrals can buy time to find alternative solutions or to soften the blow by spreading out the impact,” he added. “By this logic, the longer the term is the better. The budget line that has the longest time span is the infrastructure levy.”

The maintenance cost of the Mulock Farm property was the first question out of the gate with councillors asking for clarification on the $350,000 cost for “upkeep.”

Mayor John Taylor also requested staff seek $300,000 more in savings without impacting service levels to residents.

Budget information is now available to residents by visiting Newmarket.ca.
Rolling out the budget:

 Jan. 28, special committee of the whole meeting to discuss the capital budget and Asset Replacement Fund

Feb. 4, special committee of the whole to discuss the operating budget

Feb. 25, committee of the whole meeting including draft budgets and community engagement updates

March 4, target for council’s approval of the budget