Stouffville's 4.8% tax hike 'reckless', frustrated taxpayer says

Mayor salary increase, boost in car allowances don't impact taxes

Yorkregion.com
February 28, 2019
Lisa Queen

A large construction cone marking the spot on Stouffville’s Hoover Park Drive where a street sign was knocked over months ago is a frustrating symbol of the town’s “reckless” tax increase, resident Joe Infantino says.

Despite raising taxes 4.8 per cent on Feb. 26 – in a budget that includes boosting Mayor Iain Lovatt’s salary and councillors’ car allowances without impacting taxes -- the town isn’t keeping pace with delivering needed services, Infantino said.

“What are they doing with our hard-earned tax dollars?” he asked.

“What services are there that (warrant) a tax increase of this magnitude?”

Infantino and his wife moved to town a dozen years ago because they feel it’s a wonderful community in which to raise a family.

But they’re disappointed taxes steadily climb, creating a financial strain for many families struggling to make ends meet.

Infantino reacted with “shock” and “disgust’ when he learned earlier this month that council was pondering a 5-per-cent increase on the town’s portion of the property tax bill.

At an all-day budget meeting Feb. 26, council managed to trim 0.2 per cent off that proposed increase.

That means the average homeowner with a house assessed at $625,000 will pay an estimated $1,572 on the town’s portion of the property tax bill, an increase of $31.

Overall, property taxes are expected to increase $62 this year for the average Whitchurch-Stouffville homeowner once the regional and school board budgets are included.

While Infantino acknowledged the town renovated the library and improved some roads, he called a tax hike nearing 5 per cent “unacceptable.”

“To a lot of people, it’s going to really hit their pocketbook,” the Hoover Park and Mostar Street area resident said.

Lovatt is “proud” of his first budget as mayor.

The town only boosted its operating budget 1.8 per cent, less than the expected consumer price index increase of 2.5 per cent.

The rest of the tax increase is a 3-per cent hike to the capital budget, which Lovatt acknowledges is significantly higher than other municipalities.

“This council carried forward a vision from last council to add 3 per cent to our capital reserves every year. In our 10-year forecast, we have $160 million of capital projects that we need to do and we only have line of sight to $80 million. That means we either have money in the bank, DC (development charge) reserves or an expectation on grants to $80 million,” Lovatt said.

“Candidly, 90 per cent of our tax base is residential, so we’re not in the same position as a Markham or a Vaughan or a Richmond Hill, which have a much bigger industrial/commercial tax base. We know we need a pool. We need a new pool tomorrow. We don’t have the funds and we need to start saving for those projects, which is why we’re paying for the design of it this term so we have what is called a shovel-ready project at the end of this term into next term. If there is a federal grant that comes up for recreation or infrastructure, we can apply for it right away.”

By shifting money in their expense accounts so there is no impact on taxpayers, councillors agreed to increase Lovatt’s town salary to $94,800, up from $53,202, which is no longer one-third tax-free, to bring him in line with other mayors’ wages.

Councillors’ annual car allowances will jump to $9,000 up from $6,000.

Meanwhile, the town is working on reducing its $36-million debt, used to front-end costs such as water and sewer pipes to accommodate growth. The town admits its debt is higher per capita than other comparable municipalities.

Highlights of the budget include hiring four new firefighters to improve 24-hour fire protection in Ballantrae, enhancing “19 on the Park” and library marketing initiatives and increasing special events programming including hiring new staff.

Staff found $1.3 million in operating savings to defray town costs.

Meanwhile, capital projects this year include more than $6.3 million for public works initiatives such as the reconstruction or repair of Lloyd Street, Commercial Street, Mill Street, Library Lane, Raeview Drive, Thicketwood Drive, Blair Road, Aintree Drive, Cam Fella Boulevard and Service Road in Stouffville and Bethesda Road, Vandorf Road, St. John’s Sideroad and Lakeshore Road in rural Whitchurch-Stouffville.

Another $4.4 million is slated for water and sewer projects, including sewer replacement on Vanzant Court and the continuation of the water meter replacement program.

The town will spend $1.7 million on leisure services projects, including the relocation of the lawn bowling facilities, building the new Tresstown Parkette and funding a St. Jean Batiste Laine exhibition at the museum this summer.