Newmarket may pocket region's cancelled water rate increase to help struggling businesses

"Instead of providing everyone $18 in relief for the year, we could provide small businesses $500 in relief, which would be meaningful,' Mayor John Taylor says

Newmarkettoday.ca
Dec. 18

Newmarket council is considering the creation of a water bill rebate program as a way to provide some much needed financial support for local businesses struggling as a result of COVID-19 pandemic restrictions and closures.

However, the move would require nullifying York Region's decision not to raise water rates next year.

Mayor John Taylor pitched the idea to council Monday, arguing that the money York Region has decided not to collect by cancelling a proposed 2.9 per cent rate increase last week could be put to good use helping local businesses, rather than giving the average resident an estimated $18 decrease to their water bills.

"That won't do much to provide any kind of meaningful relief," said Taylor.

The idea is that by keeping Newmarket's 2021 water/wastewater rate increase at 4 per cent -- which equals an additional $49.44 for a home using 200 cubic-metres of water -- instead of reducing it to reflect the zero per cent increase from the region, the town could pocket the money that would have otherwise gone to York Region.

Those funds could then be used to give small businesses in Newmarket a significant break on their water bills at a time that many of them are struggling financially due to the pandemic.

"When York Region sets water rates, they are the wholesaler. That's the price they are selling to Newmarket; we are the retailer. So we have an opportunity to target the relief that has been provided," said Taylor, opposed to the region's decision to not increase rates.

"So instead of providing everyone $18 in relief for the year, we could provide small businesses $500 in relief, which would be meaningful."

When he first proposed the idea, Taylor suggested that a break on water rates for small businesses could be built into the 2021 water/wastewater budget. But treasurer Mike Mayes said it would be simpler to create a rebate program to which small businesses could apply in the new year.

Mayes noted that staff was already working on proposals for a new financial relief program to replace the amnesty from fees and interest on property tax payments that ends at the beginning of February.

"If we look at a rebate program instead of adjusting rates, we could implement that in January ... and have it come into effect in February, which is really when we want to target relief anyway," said Mayes.

Town staff will be returning with a report on a rebate program in the new year.