UPDATE: Newmarket eyes 2.99% property tax increase for 2021

'We need to hear from our residents,' says Mayor John Taylor; some citizens took to social media to pan the increase that could amount to an extra $118

Newmarkettoday.ca
October 7, 2020

The blueprint for the Town of Newmarket’s proposed 2021 budgets got an airing at yesterday’s council meeting and while still in the early stages, a tax increase appears to be on the table.

Town treasurer Mike Mayes presented a preliminary draft of Newmarket’s operating and capital budgets that included a proposed 2.99 per cent property tax increase, along with increases to water, wastewater, and stormwater rates.

That amounts to an extra $118 on next year’s tax bill based on an average single detached home with an assessment value of $700,000.

Some residents were quick to pan the idea of a tax hike, noting that many in the community are suffering due to the economic fallout caused by the COVID-19 pandemic.

“Nothing should cost more,” Mark Gordon said in a comment on social media. “What is the (justification) for an increase? What costs more than a year ago?”

Resident Satyne Shier Ward predicted that Newmarket will be “absolutely unaffordable in less than a year for so many”.

“RIP Newmarket,” Ward said.

Lou Krasny echoed that sentiment in a comment at NewmarketToday’s website.

“We cannot afford it anymore!” Krasny wrote. “With all the new homes and condos being built, and more revenue coming in, you are still increasing property (taxes) and water rates? Newmarket is the most expensive town and council!”

Others suggested the town sell the 11.6-acre Mulock estate it purchased in 2018 for $24 million to create an iconic year-round park, and some commenters noted that local seniors are having difficulty staying in their homes due to strained finances.

A few residents also weighed-in on social media, offering a contrasting view that an increase of a little more than the rate of inflation is reasonable.

“It is actually far better than I expected, if true,” resident Darryl Wolk said.

Mayor John Taylor emphasized that the proposed budgets are a starting point in what is expected to be a months-long process that involves consulting the public and incorporating their feedback before final decisions are made.

“We’ll get public feedback and make adjustments going forward, and council can make changes based on that,” said Taylor. “The big decision we have in front of us, and we need input on that, we need to hear from our residents, is that we are facing two competing and significant situations.”

Taylor noted COVID-19 and the economic impact it has had on the community, along with the challenge of the town having little reserves upon which to draw in the event of emergencies such as the pandemic, as key priorities that need to be balanced.

“We’ve got both of (those situations) at the same time, where do we find a balance in recognizing the times we live in, but not ignoring future generations,” he said.

It’s being proposed that 1 per cent of a potential 2.99 per cent property tax increase be put into a new contingency reserve fund that could be used for unforeseen emergencies such as the unprecedented global pandemic.

Treasurer Mayes highlighted the town’s efforts so far this year to reduce the burden on taxpayers, which included finding $544,000 in efficiencies, or 7 per cent more than required, applying a $1.8 million federal emergency grant the town received to help offset its response to COVID, and other service-level reductions to ensure there was no deficit carried into the new year.

“There were a lot of sharp pencils used in preparing this budget,” Mayes said.

The town’s 2021 operating budgets include $91 million (tax-supported), $46.4 million (rate-supported), and a $37.2 million capital budget, for a total of $174.6 million.

The Central York Fire Services budget has not yet been reviewed or approved. The joint council committee will consider the budget requests on Oct. 13.

Two special committee of the whole public meetings on the town’s budgets are scheduled for Oct. 19 (capital and rate-supported operating budgets, rate financial plans), and Nov. 9 (tax-supported operating budget, asset replacement fund and fiscal strategy).

A draft of the budgets is expected to go before a committee of the whole meeting on Dec. 7, with approval of the budgets and remaining fees and charges set for a Dec. 14 council meeting.

To read the 2021 preliminary draft budget report, visit here.

Original story

Newmarket taxpayers face a potential 2.99 per cent property tax increase in 2021 which, together with increases to water, wastewater and stormwater rates, amounts to about $118 for the average single detached home.

The preliminary draft budget being presented to council today, Oct. 5, proposes the increase that equates to approximately $64.79 for the average residential property.

The project increase for water and wastewater combined is 4 per cent, and 10.2 per cent for stormwater. For the average residence with an assessment value of $700,000, this amounts to $49.44 and $4.28 respectively.

The COVID-19 pandemic will have no direct impact on next year’s budget, finance officials say. However, the public health crisis is expected to have an indirect impact in terms of when and how hard a second wave of the novel coronavirus will be, what the new normal will look like, and the implications of a slower economy.

More to come on this developing story.