Vaughan eyes $49 tax hike in proposed $320-million budget
A motion dubbed is dubbed ‘late’ to bring down the new budget’s incremental tax rate to 2.5 per cent from its proposed 2.85 per cent
Yorkregion.com
Dec. 10, 2019
Dina Al-Shibeeb
Vaughan council rejected a “late” bid to bring down its property tax increase to 2.5 per cent from a proposed 2.85 per cent.
So far, the proposed local property tax levy for 2020 is 2.85 per cent, an increase on average of $49 annually or $4.08 per month for an average residential property assessed at $891,000. That doesn't include the increase in the Region of York's portion of the tax bill.
Regional Coun. Gino Rosati put forward a motion to drop the take hike lower but that was struck down after being deemed too “late” by councillors Linda Jackson and Sandra Young Racco.
Coun. Rosanna DeFrancesca also joined in the chorus, pointing out city staff spent a long time coming up with the proposed budget. She said his concerns about lowering the tax rate should have been expressed much earlier.
However, Mayor Maurizio Bevilacqua said Rosati has the “right to express his version of 2.5 per cent,” but described how in the past two election cycles the budget was running on a three per cent incremental tax rate and it was “successful.”
“There is an endorsement for the three per cent,” Bevilacqua added.
“I won't support you on that,” Racco told Rosati, urging him to exert more pressure as a regional councillor on York Region in hopes of reducing “downloading” responsibilities on municipalities such as Vaughan.
For the average residential tax bill, budget 2020 sees almost half of Vaughan’s taxes heading to the Region of York, only 28 per cent to the city, 23 per cent to the local school boards and one per cent to the hospital precinct levy.
However, for the commercial tax bill, about 58 per cent is funneled to local school boards while 26 per cent goes to the region and 16 per cent to the city.
Budget sits at $320.3M
The newly proposed budget for 2020 has a gross operating figure of $320.3 million, up from $310.3 million in 2019.
The budget’s nontax revenue, which comes, in part, from other levels of government, has also seen a slim increase to $104.7 million from $103.9 million the year before.
However, when it comes to the net levy requirement or how much money is needed from taxpayers for 2020, it sits at $208.4 million, almost a 6 per cent increase from 2019’s $197.4 million.
As for assessment growth, which pertains to taxes coming from newly built homes, it's projected to see a small increase to $3.5 million when compared to $3.3 million last year.
However, the supplemental taxation and payment in lieu of taxes (PIL) sits at $5.8 million, unchanged from 2019.
PILT is a payment made to compensate a government for some or all of the property tax revenue lost due to tax exempt ownership or use of real property.
The incremental levy requirement has also stayed the same at $5.7 million.
Wastewater?
For water and wastewater rates in 2020, the combined draft rate is $4.9794 per cubic metre representing a 9 per cent increase over 2019. The increase to the average household that consumes 260 cubic metres will be approximately $106.91 annually or $8.91 per month.
Asked about the budget formulation process, Michael Coroneos, chief financial officer and city treasurer, said his team started working on the 2020 budget in March.
Among the challenges facing Vaughan is Bill 108, said Coronoes at the start of the meeting. The bill reduces powers held by municipalities over new homes and development.
With Vaughan being one of the “fastest growing” municipalities in Canada, shifting from bigger homes to smaller units to bolster intensification also poses as “challenges” especially when factoring in aging infrastructure and other much-needed services.
FAST FACTS ABOUT THE 2020 CAPITAL BUDGET AND 2021-2022 CAPITAL PLAN
- $252.2 million in capital projects related to Transportation and Mobility. Projects include improving the local road network, supporting regional transportation initiatives and advance active transportation.
- $127.8 million in capital projects related to City Building. This includes the development of the Vaughan Healthcare Centre Precinct, developing the Vaughan Metropolitan Centre and elevating the quality of life through city planning.
- $81.9 million in capital projects related to Environmental Stewardship. These initiatives will focus on protecting and respecting the environment, proactive environmental management and help build a low-carbon economy and a resilient city.
- $69 million for capital projects related to Active, Safe and Diverse Communities. This will include programs to enhance community well-being, help enrich our communities and maintain safety in our community.
- $1.9 million in capital projects for Economic Prosperity, Investment and Social Capital. Projects will help advance economic opportunities, attract new investments in Vaughan and enable a climate for job creation.
- $5.7 million in capital projects related to Good Governance. These initiatives will ensure transparency and accountability, demonstrate value for money and showcase Vaughan’s commitment to financial stewardship.
- $43.5 million for capital projects related to Citizen Experience. This includes programs that demonstrate commitment to citizen service and transform services through technology.
- $57 million in capital projects related to Operational Performance. By fostering a culture of continuous improvement, the City will use data-driven decision-making and promote innovation.
- $700,000 in capital projects for Staff Engagement. These initiatives will empower staff, develop leadership skills and help manage performance.
UPCOMING BUDGET MEETINGS:
FOR VAUGHAN:
Dec. 10: Programs and Services Budget Review
Dec. 17: Adoption of 2020 Budget and 2021-2022 Financial Plan
FOR YORK REGION:
Dec. 19: Budget Approval by Regional Council
