Tax freeze amid COVID-19: Richmond Hill council approves municipal levy of $118 million for 2021

Capital asset sustainability levy increases by one per cent to fund the repair and replacement of aging infrastructure

Yorkregion.com
Feb. 12, 2021
Sheila Wang

Richmond Hill taxpayers will see a zero per cent increase on the municipal portion of their tax bills in 2021 despite the financial pressures brought on the city by the ongoing COVID-19 pandemic.

City council unanimously approved the 2021 operation budget at the Feb. 10 council meeting, delivering a tax freeze for residents and businesses.

The budget provides for a municipal tax levy of $117,956,300 (excluding supplementary taxes) that includes a $0 budgetary increase over 2020.

It is the first time in more than 15 years that the municipal portion of the residential property taxes will not go up in Richmond Hill, according to a press release from the city.

“This budget is great news for residents and businesses in Richmond Hill. No tax increase, all our services stay intact and we’re still able to invest in our infrastructure,” Mayor Dave Barrow said in the press release.

Several other York municipalities have also passed zero per cent property tax increases for their 2021 budgets, including Markham, Vaughan and King Township.

The zero per cent increase in Richmond Hill was achieved by identifying $2.94 million in efficiencies, without cutting services or using the reserve funds, according to the city.

The total expenses in 2021 provided in the operating budget are $184.1 million.

Two-thirds of the expenses go toward personnel costs, which are estimated at $124.1 million.

In order to achieve the zero per cent tax increase, there will be no new staff additions to the city this year.

Savings and efficiencies are identified in non-personnel costs as well.

The reorganization last September, which saw the city structure moved from a four-commission model to a three-commission model, saved Richmond Hill over $1.5 million.

Meanwhile, more than half a million dollars was saved from Richmond Hill Public Library, about $380,000 was saved from administrative efficiencies and $360,000 was saved from cancelled or reduced programs.

As part of the Safe Restart Agreement, the city received federal and provincial funding of $4,131,900 in 2020 and another $1,747,000 in 2021.

The city’s current forecast indicates $1.5 million of the Safe Restart funding will be needed to offset the 2020 deficit, leaving $2.6 million for this year.

Richmond Hill’s deficit for 2021 is estimated to hit $4,644,500, according to a staff report.

The tentative plan is to offset the deficit by first implementing mitigating measures before utilizing the remaining Safe Restart funding, the report says.

“Through careful decision-making and support from other levels of government, we are in good shape to emerge strong from the pandemic,” said Joe DiPaola, who is the budget chair and regional councillor.

Richmond Hill’s senior tax grant for 2021 is $404. Residents over 65 who own their home should visit RichmondHill.ca/TaxAssistancePrograms to determine if they qualify.

The capital asset sustainability levy increases by one per cent to fund the repair and replacement of aging infrastructure such as roads, parks and buildings.

This increase is equal to $19.55 on a property valued at $1,146,000.

It’s important to note that Richmond Hill will keep 26 per cent residential property taxes, with 51 per cent sent to York Region for regional services and 23 per cent sent to school boards for education funding.

Richmond Hill council controls only the local portion of taxes.