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King Township approves 4.95% tax increase for 2023

Inflation, insurance and contract increases, blamed for drastic increase

Yorkregion.com
Feb. 16, 2023
Laura Broadley

King township council has approved a 4.95 per cent tax increase for 2023 -- meaning the average home assessed at $1 million will be out an additional $131.

Township staff cited the “cost of inflation, insurance and contract increases while balancing the need for additional enhancements in the township’s portion of the 2023 budget” as reasons for the tax hike.

King is hardly the only municipality feeling the impact of rising costs -- Georgina council approved a 6.89 per cent tax increase at a January meeting, and

Markham council is poised to approve a proposed tax hike of 6.4 per cent.

Bill 23, the More Homes Built Faster Act, is set to have a financial impact on municipalities across the province, forcing councils to approve higher than normal property tax increases to make up for the revenue lost to decreased development charges.

King council members recognize residents are facing increasing costs from every direction, Mayor Steve Pellegrini said.

“That is why council instructed staff to find a way to achieve a budget below the inflation cost while balancing the needs of the community. Our King team responded with a budget that continues to offer a great quality of life here in King,” he added

The township’s total budget for 2023 is $97.6 million, including $63.7 million in the operating budget and $33.9 million in the capital budget.

The overall budget impact, including operating budget increases, totalled $1,585,992. The township portion of King’s annual property tax includes the operating budgets to fund current service levels, programs and services in addition to capital infrastructure, including snow removal, bridge repairs, fire and emergency services and libraries.

King’s chief administrative officer, Daniel Kostopoulos, said staff and council will need to look at how inflation and new legislation will impact services so the township can be prepared in the future.

“This will increasingly be a challenge as we experience the impact of record-breaking inflation rates of more than six per cent with increasing costs,” he added. “The township is facing increasing costs in the materials we buy, construction project costs, contract increases and daily operation that includes fuel and maintenance of fleet, while balancing the growth pressures of new communities that need to be supported.”

The 4.95 per cent increase is only King’s portion of the property tax: York Region’s increase and the Ministry of Education’s budget will take more money out of residents’ pockets.

The region has proposed a tax increase of 3.9 per cent, which means the average home assessed at $1 million will be out an additional $154.

The total property tax rate for 2023 will be finalized in April after the region and the Ministry of Education approve their budgets.

Major capital projects that have been approved for funding in the 2023 budget include: