Newmarket council set to settle on $120 tax hike on average residential home

Yorkergion.com
Feb. 27, 2019
Teresa Latchford

Owners of an average home in Newmarket can expect to pay $120 more in municipal tax this year.
With the average home valued at $580,000, homeowners can expect to pay an additional $57 in property taxes, $59 in water and wastewater rates and $4 for stormwater rates, totalling

Following this week’s committee of the whole meeting, Newmarket council is set to approve a 2.95 per cent tax increase for this year.

Council members were presented with a staff report recommending the approval of an operating budget of $131 million, which would result in a 3.95 per cent tax hike or $140 for the average home.

“I want to propose an alternate recommendation,” Ward 3 Coun. Jane Twinney said at the meeting.

She continued by suggesting council consider the 3.2 per cent increase option, reducing the Asset Replacement Fund contributions to $146,200 rather than contributing the targeted 1 per cent and reducing the operating budget for the newly purchased Mulock Farm estate by taking $150,000 of the proposed $350,000 operating budget for upkeep and maintenance and putting it into a reserve to use toward the farm at a later date.

“I think this is a really good place for us to land,” she said. “It funds what is needed and puts money aside for the Mulock Farm, which will be a benefit when the time comes.”

Mayor John Taylor felt that while the budget does introduce some risk, that risk is manageable.

“We are trying to reduce taxes but remain an outstanding community,” he said. “I personally think the 1 per cent target (for the ARF) is important but it is a target. We can increase our contributions over time to pay back water and wastewater funds.”

Finance Director Mike Mayes confirmed the ARF is currently underfunded and borrowing funds from the surplus in the water and wastewater fund but that the town will pay back the fund in time.

The preliminary draft budget presented earlier this year 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 decided 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.

Town council is expected to discuss final approval of the 2019 operating and capital budget at a meeting to be held March 4.