Markham council invites local MPPs to hear impacts of Bill 23 on municipal budget

Yorkregion.com
March 3, 2023

Markham’s four members of provincial parliament (MPPs) are invited to come forward to debate the implication of Bill 23 on the municipal’s 2023 budget.

At the Council meeting Feb. 22, Ward 4 Councillor Karen Rea raised the request, “We've talked about this in the budget committee. I'd like to request that we formally invite our local MPPs to our public meeting on March 9.”

“This would be a good education session for our local MPPs, because it's obvious by some of the emails that we received that they don't know how our budget process works.” Rea referred to the emails sent out by local members of provincial parliament to the residents regarding green belts and Bill 23.

Do the MPPs need “education” about municipal’s budget process? Has the province truly left the budget to the municipals themselves?

In respond to Markham’s 2023 budget tabled on Jan. 23 with a projected tax rate increase of 6.4 per cent this year alleging Bill 23 put significant pressure on the future budget, the spokesperson for minister of Municipal Affairs and Housing Steve Clark wrote to Markham Economist and Sun regarding the reduced development charge collection impacts.

“These fees (development charge) have only been accumulating in reserves. The City of Markham’s year-end municipal development charge reserve balance was over $105 million in 2021; yet in only two years -- since 2020, Markham has increased its development charge rate by 53 per cent on average homes.”

We are launching a third-party audit of select municipalities to get a factual understanding of their finances, including their reserve funds and development charge administration. We are committing to ensuring municipalities are kept whole for any impact to their ability to fund housing enabling infrastructure because of Bill 23.” The spokesperson added.

City staff indicated on the Jan. 23 council meeting there is a provision of one per cent tax rate increase this year for future Bill 23 parkland, growth studies and reduced development charge collection impacts, equivalent to $1.695 million, as well as another one per cent increase for the reduction of development cost funded salary recoveries of $1.7 million. At that time, Mayor Frank Scarpitti described the two per cent as a “provincial surtax” in terms of the financial impact to the municipalities.

When it comes to publicly debating the financial impacts of Bill 23, alternatively the Mayor preferred a one-on-one private meeting with the members of the provincial parliament.

“I think there's going to be an opportunity, and perhaps even before then or after then, to invite them to meet and perhaps myself and the budget chair, vice-chair, to sit down.”

However, Deputy Mayor Michael Chan carried the idea of public debate, “All those emails to the local residents are based on political propaganda. We would have to tell the public and one-on-one it can be contradicting statements.”

He continued, “We have to defend our position for the city in term of the rate increase, in term of the tax increases and the reason for that.”

Finally, the Mayor met it halfway, “I would invite them to (public meeting) but I will try to set up a meeting."

The debate could be much anticipated for Markham residents. A petition has been initiated to oppose the tax hike of Markham on change.org with almost 1500 signatures as of Feb. 23. The petition also opposes Bill 23 and requests the council to “represent the citizens' voices to revise Bill 23.”

The public meeting for the 2023 budget presentation will be held on Thursday, March 9 at 7 p.m. Feedback from the meeting will be incorporated into the report for Council’s decision on March 22.