Richmond Hill eyes 0.5% tax increase for 2021

There has been a 36-per-cent decline in the city’s non-tax revenues due to COVID-19

Yorkregion.com
Oct. 13, 2020
Sheila Wang

Despite the financial challenges brought on by COVID-19, Richmond Hill council has set a maximum 0.5 per cent municipal property tax increase for 2021.

City staff estimates the hike to the municipal tax rate would equal less than $15 for most households.

The city announced its commitment to maintaining a low tax increase on Oct. 6, following a budget committee meeting during which city councillors discussed the impacts of the pandemic and the fiscal outlooks.

Councillors extended their thanks to city staff for their work and to the residents for paying property tax on time.

About 90 per cent homeowners have paid their property taxes in full despite the late payment fee waiver in effect until 2021.

“Their efforts helped support Richmond Hill’s recovery and continued services for their family, neighbours and the entire community,” said regional councillor and budget chair Joe DiPaola.

The city is projected to reduce its year-end deficit to $1.38 million in 2020 from a previously estimated $15.9-million revenue shortfall due to closures of facilities and programs, according to treasurer David Dexter.

Dexter, who presented the operating budget forecast for 2020-2021 at the meeting, said the city has taken a slew of measures to offset the shortfall.

There has been a 36 per cent decline in the city’s non-tax revenues due to COVID-19, according to the staff report.

The city managed to save $9.5 million in reduced expenses and over $6 million in other cost-saving activities.

The Phase 1 emergency funding from the Ontario government will cover the remaining over $1-million deficit, the treasurer said.

Richmond Hill's allocation for Phase 1 will be $4,131,900.

Meanwhile, the treasurer also presented a high-level outlook to project the impact of a second-wave scenario.

Staff estimated a deficit of $4.36 million for 2021, which will be partially covered by the emergency funding.

The 2021 operating budget is expected to be reviewed and approved in early 2021.

Richmond Hill receives 28 per cent of property taxes collected from the residents' tax bills. The majority goes to school boards (23 per cent) and York Region (49 per cent), which will set their own tax rate increases for 2021.